Many Americans have large balances of credit card debt; for the average family, the amount is over $15,000 dollars. With average interest rates over 13%, many families see themselves potentially having to pay large amounts of money in interest simply by making just the minimum payment. With such large sums, many families are trying to find ways to lower their debt.
Credit consolidation can help families achieve this by combining all their credit card payments into one loan. This lowers interest rates and can raise one’s credit score. Borrowers should not be tempted by credit-repair companies, however, as these companies can cause a borrower to default on their debt before settling, leaving the borrower with substantial negative information on their credit file.
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The Risk And Rewards Of Consolidating Credit Card Debt