What Are The Kinds of Debts You Can Consolidate?
At the moment, US is facing over $18 trillion in debt, it is
indeed a serious issue for the nation. As per valuepenguin.com, the average
household debt of an American is around $5,785.
Total outstanding US consumer
debt is whopping $3.5 trillion and total revolving debt is $929 billion.
Over 39% of all households have some form of credit card debt.
As per the data of Survey of Consumer Finances by the U.S. Federal Reserve, the average credit card debt of US households is $16,050.
During this survey, significant differences were also noticed as per different
age, gender, region, and gender. According to TransUnion, Alaska has the
maximum number of residents under credit card debt and Colorado is in the second
Individuals between the age group of 45 and 54 years of age have the highest debt i.e. $9,098. Calculating as per the gender, men carry more credit card debt – $7,408 as compared to their female counterparts – $5,250.
Above paragraphs only dealt with the problems but let us
shift our attention towards the solution, this is where ‘Debt Consolidation’
come into the picture.
Are you wondering what this is?
Here are some reasons why you might consider debt consolidation if you are in trouble with debt:
- It is a manageable solution for people who are bad with money
- It is a low interest form of debt
- It eliminates the potential to accumulate more debt
A manageable solution
Poor management of personal finance is one of the ways in which people get into debt. The only way to develop good financial management is through financial education. Unfortunately this is something which is rarely taught and is normally learned through hard experience. As a consumer it can be difficult to resist temptation and effectively budget to meet all your financial obligations. But you need to always remember your priorities, such as:
- Your mortgage
- Your utility bills
- Your phone bills
- Your loan payments
- Your credit cards
This is just a few of the many bills we have to pay each month. With multiple debts and obligations it can become difficult managing your finances. People can often get trapped in debt because of continuing late payments or incorrect payments in case you haven't calculated your loan emi correctly or missing payments completely. These errors can result in fines, fees, penalties and pen