Credit Where Credits Due

Credit Where Credits Due
Borrowing money has become easier in​ recent years,​ and credit cards have become abundant and more and more competitive. It​ seems to​ be so much easier to​ get hold of​ credit nowadays so it’s no surprise that there is​ more debt in​ the​ developed countries than ever before.
Credit card companies,​ banks and other lenders all make their money on​ the​ interest they charge you​ for borrowing money from them.
Obviously we can never predict in​ life when something is​ going to​ go pear shaped,​ we may lose our job for one reason or​ another,​ we may have ill health and be unable to​ work,​ we may have other financial commitments and find that the​ money we have doesn’t seem to​ stretch very far. This is​ unfortunate but quite often things can be resolved quite soon with the​ least upset.
People on​ lower incomes or​ poorer credit ratings are generally offered higher interest rates,​ and this is​ where many people come unstuck. Each month you​ have to​ make a​ payment,​ and quite often people on​ low incomes will pay just the​ minimum balance from their credit card statement,​ now this seems great for a​ while,​ until one day you​ realise that all you​ seem to​ be paying is​ interest! Your balance is​ just not going down! So what do you​ do? Well some people starting weaving a​ very tangled web by transferring their balance to​ another card with a​ great introductory offer if​ they are in​ the​ lucky position to​ be accepted for another card.
Again this seems fine for a​ while until the​ introductory offer expires and you​ have to​ pay full whack interest!
Meeting the​ monthly demands becomes quite difficult,​ and in​ the​ end people are borrowing from one lender to​ pay another.
This is​ where debt consolidation comes in. Basically,​ a​ lender will pay off all of​ your debts,​ and then you​ will pay just one bill,​ to​ them,​ they claim that they could even reduce some of​ your debt. Research is​ the​ best tool here,​ before you​ go off and sign up with any old debt management company,​ read all of​ the​ terms and conditions and make sure you​ are aware of​ what is​ going on. Approached correctly debt management could avoid getting to​ the​ nasty stage of​ Bankruptcy!
Credit Where Credits Due Credit Where Credits Due Reviewed by Henda Yesti on November 16, 2018 Rating: 5

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