We live in a consumer society driven by unsecured debt in the form of expensive credit card balances. Interest rates are high, and always with some form of credit-usage fee in our account statement. Here are ten reasons to find the best way to consolidate your credit card debt.

  1. Avoid Annual fees. Many credit issuers ask members to pay an annual usage fee to use the credit card and those annual fees add up. There are also some who offer their credit card use without an annual membership fee. Keep in mind that if you switch your cards to consolidate annual fees, check that the issuer has not added other fees or higher interest to compensate. It is possible the overall cost to use the card will exceed the annual fee on your existing card. You still owe the balance, but have one less credit card.
  1. Avoid high Interest rates. As with annual fees, some credit issuers charge a high rate for privilege. Many cardholders will consolidate their outstanding debt into fewer credit cards because the interest rates on their existing credit cards are just too high. Again, you will have fewer credit cards but still owe your outstanding balance.
  1. Avoid heavy late charges. Minimize late fees and interest. Don’t be late or short on your payment. You are throwing free bonus money to the credit card company. And they may reduce your credit limit.
  1. Raise your credit rating. Late or missed payments reduce your credit score as does maxed out credit limits. On the other hand, timely payments and reduced balances yielding more available credit makes an attractive borrower. Optimal credit scores come with three to seven current credit accounts.
  1. Qualify for a mortgage loan. Your credit score is a major factor in approving mortgage loans and reducing outstanding debt is a home run. Paying off credit card debt can significantly improve your credit score.
  1. Save. With cash in the bank, you are prepared for a possible layoff or other unexpected emergencies. Pay yourself instead of the credit card companies.
  1. Pay cash. Don’t owe anything after the holiday season. Consolidate your debt and pay cash. Start next year debt-free. You have enough time. Feel great knowing you’re in control of your finances.
  1. Vacation. Enjoy life today. Consolidate your credit cards and build a bank balance for that purpose. Come back relaxed and debt-free.
  1. Reduce stress. Finding the money to pay monthly minimums to various credit card companies is stressful, especially where we may never pay off the balance. It can affect our health and can be a huge stress load to carry. How much easier life will be with the elimination of multiple accounts, bills, automatic drafts, all due on different dates.
  1. Contribute towards your retirement. With economic room in your budget, you can increase payments to your retirement account and ensure your later years.

Credit card debt is growing in our country. American families will waste thousands of dollars in interest over the next year making only minimum payments. This is the biggest reason to consolidate your debt on those cards.