Consolidating credit card debt and paying off the creditors to which you owe money to and being left with one more manageable monthly repayment is a great solution for those with bad credit card debt problems. It happens to millions of people all over the world, not only in South Africa, the temptation of buying things on credit can get very strong and before you know it you are charging everything on the dreaded plastic. Many people have spent thousands using Absa, Nedbank, Standard bank and Virgin money cards to buy goods and have been using one card to pay off another until there is no money left to borrow and the limits have been exhausted.
This is when consolidating credit card debt is needed urgently so that a person can finally pay off all their creditors and get back on the road to financial freedom again. Those who qualify for these consolidation loans, and when we say qualify that usually means own property of some sort, can get finance to be able tp pay off all the various cards at once. After doing so they are left with a single monthly repayment at a lower interest rate which will also help the person to save money in the long term.
It is a good idea for people in this situation to ask the advice of a debt counselor especially if they feel there maybe some likelyhood of them using more cards in the future to go shopping and buy goods, building up uncontrollable debt once again. All cards should be cut up with a pair of scissors once the creditors have been paid with the funds from a consolidation loan and discipline needs to be practiced by those with trouble controlling their spending never to approach a bank about applying for a card again. It is all to easy for those with little self control to fall back into financial burdens even after consolidating credit card debt with the help of a loan.