What is debt? According to the Federal Reserve, over 40% of American families spend more money than they earn.
It isn’t news that Americans have a love/hate relationship with debt. Consumer debt is at an all-time high according to the Federal Reserve which puts the figure at about $2.8 trillion, and this does not even include the debt associated with mortgages!
$2.8 trillion is $8,800 for each man woman and child in the United States. 31% is from revolving credit like credit cards, and 69% is due to automobile loans, student loan and money borrowed to buy boats, trailers, vacations.
The average new car loan is $27,000. Each American carries an average of thirteen items worth of plastic (ie. credit cards, debit cards, store cards, etc.) amounting to 1.3 BILLION payment cards in circulation in the U.S.
Americans are making over a Trillion Dollars in credit card purchases annually Month-to-month, the average credit card debt is $5,800.
If you made only the minimum payment on the average debt, it would cost you an additional $15,000 in interest during the 30 years it would take you to pay it off. The typical credit card purchase costs 112% more than it would have using cash!
The point of debt consolidation is to ease the burden of paying interest on your existing debts. What you essentially do is pay off all of your higher-interest debts with one big loan with a modest interest rate.
This can be done fairly easily, especially when you can provide collateral such as your house.
Reasons to consolidate your debt? Secure a lower interest rate, secure a fixed interest rate and service just one loan.
You can’t borrow your way out of debt, but you can consolidate all your high-interest debts into just ONE debt consolidation loan with a favorable and fixed interest rate. Prevent your debt from spiraling out of control by consolidating it into one easy payment and paying down the principal amount!
**Don’t forget about the convenience of paying one bill each month instead of keeping track of several. This should save you hassle and valuable time.Visit www.projectdebtrelief.com now for a free consultation with a debt specialist!**