For many years credit cards have proved to be a blessing in disguise.
If ever you need immediate cash or have to make an emergency purchase, they are there to help you.
However, we are also prone to purchasing things that we don't really need and then accumulating a large amount of debt! This is when, you start to have problems meeting your monthly repayments.
So if you need to get your "house" back in order, a credit card debt consolidation loan may be just the thing! Did you know to pay back an $8000 limit on your credit card can take up to 25 years if you merely make the minimum payment every month? How much do you think you will eventually pay back in total just to clear that $8000 debt? When looking for credit card debt consolidation loans, you will probably find that banks and lenders are not very forgiving if you have bad credit.
The financial institutions have a near zero tolerance policy for anyone who makes late payments or misses payments altogether.
This will, of course, have an immediate detrimental effect on your credit score.
Thus making it near impossible to secure any form of credit or finance.
Luckily a number of new lending institutions who deal solely with people with bad credit have appeared during the current credit crunch.
Due to the additional risks that these lenders are taking, you can expect to be charged a slightly higher interest rate for a credit card debt consolidation loan.
However, this will most likely work out to be a lot less expensive than your credit card bills and will take a lot less than 25 years to repay!