Why consolidate credit card debt?

When you become interested in this question, you are probaby already in the clutches of the credit card tentacles, and beginning to feel the increasing pressure of the debt trap.

Credit cards are so convenient. Who wants to carry around bulky crumply bank notes and coins, except as use for small change? And sometimes, you have no other alternative but to use a credit card, as when you make an online purchase. You are caught in a debt trap.

These painless purchases seem to be backed by an endless source of funds out of nowhere. We can all enjoy the things we want now. The credit card companies make it easy to make repayments in minimum amounts, and you are then allowed to go on a further credit spree.

Every month you get a little shock to see that your outstanding balance of debt has kept growing, but that shock is short-lived. You can still make the minimum payment, and you are safe. You don't think of the fact that by making minimum payments the debt is hardly ever going to be reduced. You are slowly being eaten alive by the interest that keeps on bloating the debt.

This is the culture of a debt-ridden and debt-dependent society. It's normal to be forever in debt. The credit card debt trap feeds on greed, human frailties, impulse buying, instant gratification. Our society as a whole thrives on debt. When the crunch comes, not only is the individual debtor crushed, but the economy teeters on the verge of a total collapse.

Everyone has to reign himself in and exercise restraint. There is only one way to reduce debt, and that's by clearing it, repaying it. Pay up your balance immediately, or as soon as you can. You must not extend it by the use of minmum payments. Some people cannot repay, as they have been so enslaved to and ensnared in the cycle of debt.

You may then have to seek a way to reduce the rate of your expanding debt. A consolidation loan in one such means. It will be used to cover all your credit card indebtedness. The loan is offered at a lower interest rate than that charged by the credit card company. (If it is not, it would seem rather pointless to get such a loan.) So you are saving on interest rates, and as you make your repayments, you indebtedness is effectively reduced at a faster rate.

The feeling you experience when you are getting out of credit card debt and you see your debt gradually reducing is a sense of relief. When you finally free yourself from debt the feeling is priceless.