All About Debt Can Change Your Financial Future
You've probably heard horror stories about revolving credit card accounts for so long you might have become numb to them. After all, could you really pay on an account for years and not see a significant reduction in the balance? Would a legitimate credit company really con its customers into paying thousands of dollars in interest, knowing that most people are on limited budgets? The answer to both questions is yes. Fortunately, All About Debt is on your side.
The Credit Card Scheme
Credit cards give consumers buying power like they've never had before. Whereas people once had to save for purchases that were just out of their financial reach, a credit card gives them the ability to buy these things on the spot--without having to part with a single penny. Of course, they do have to pay back the debt, but in very small monthly increments. More powerful than cash while taking up less space in one's wallet, a credit card at first seems like a buyer's dream come true.
But like the dreams you have when you're between the sheets, there's always a point when you wake up and have to face reality. In the case of a credit card, that usually happens when you realize the payments you've been sending in for months and months have had little effect on your balance. That's because of two factors, which were intentionally designed by credit card companies to keep themselves in business. The first is the revolving system in which interest is charged. While an installment loan calculates the interest on the total borrowed amount and sets up a fixed payment plan, revolving credit involves continually recalculating the interest based on the account's current balance. So while you might be working with a fixed interest rate, the amount of interest you actually pay varies and remains limitless.
A Wolf in Sheep's Clothing
The second factor is especially shrewd in that it's cleverly disguised as one of the benefits that draw people to credit cards in the first place: the low monthly payment. By charging cardholders a low percentage of the balance every month, usually 2 percent, revolving credit companies receive just enough to cover that month's interest. That leaves the virtually unchanged balance to be transferred to the next month's bill, at which time new interest is added for the customer to pay off again. That's how credit card companies keep you onboard for the long haul, and that's why you need All About Debt.
End of the Line
A debt consolidation loan can put a stop to the out-of-control revolving credit wagon. It condenses your monthly bills into one inexpensive, convenient payment with a fixed interest rate--meaning not only will you have more money in your pocket, but also you'll actually be able to watch your balance shrink with each passing month as you get closer and closer to financial freedom. All About Debt can help set you up with a debt consolidation loan that's right for you.