Has Bad Credit Consolidation Become the American Way?

Acquiring credit should have a big label attached 'Handle With Care' or 'Use At Your Own Risk'.

Consumer credit is so readily available today, that many in our society have mismanaged its use with the result being an overwhelming load of debt that appears insurmountable. Much like an addict, the choice to use credit and credit cards begins with the basic premise that 'I can control when and how much I use.' That available credit quickly disappears as the debt piles up and soon, being late with one payment spirals into missing a few payments.

The late fee charges appear and those pesky interest rates accumulate as the unpaid balance lingers. When these credit problems begin, they gain momentum at an alarming speed so, before you know it, you are in a deeper mess than you ever thought possible.

To make matters worse, most people reach out instinctively for the most convenient help: another credit card. Using one credit card to pay off another is NOT a good debt consolidation idea. It is the equivalent of 'robbing Peter to pay Paul'. It is a prime example of the cure being worse than the illness.

This cycle may continue for some time, while credit ratings are destroyed. Getting a loan to buy a car or home becomes impossible. Of course, the collection agencies, intent on getting your debts paid whether you have the money or not, begin their harassing calls.

At this point, some have turned to bankruptcy, while others have pursued bad credit consolidation. Card debt consolidation simply means merging all those debts that have spiraled out of your control into one big debt. Interest rates on consolidation loans are usually low and fixed. Consolidating debt reduces all the monthly payments to one monthly payment only, making the repayment more manageable. The consolidation company distributes your payment amongst your creditors, giving you peace of mind and relief from the debt collection agencies.

There are controlcreditcarddebt.com/consolidating-debt.html pros and cons to consolidating debt. A credit card debt consolidation loan is not a cure all. The debt must still be paid. It can however, give you a little breathing room and a little help towards restoring your good credit. On the other hand consolidation can be dangerous because you are only treating the symptoms of over spending. Altering the habits that caused the situation is also vital.

You will want to visit ControlCreditCardDebt.com ControlCreditCardDebt.com which provides more information for debt relief through the Debt Action Guide. As well as reviewing ideas on how to alter patterns of spending and family budgeting, use the many other tools, tips and resources that help deal with mounting debt.