If you are like many people who are still looking to clear our a lot of that debt that you racked up at Christmas time, you may be considering getting a loan to consolidate your debt and try to get things back under control. While a debt consolidation loan may well do the trick, you should realize this is not the only way to get out of debt.
Credit Cards can also be used as a path to getting out of debt. Many people think credit cards are the reason they ended up in debt in the first place, so how will they help?
The reason you got into debt in the first place was that you got drawn in by all those department store credit cards that offered to give you 10 or 15% off of your Christmas shopping total. You thought that was a great deal at the time, and may have even decided to buy a little more than you were planning on, thinking you would get a great savings.
What you didn’t take into account was all the money the credit card company was going to get in interest. That started becoming evident as the credit card bills rolled in and you realized you were starting to get buried under credit card debt.
Now, you find yourself in a position where you don’t want to turn your good credit into bad credit, and also don’t want to spend the rest of the year paying off last years Christmas presents. So, you are considering a loan.
While the stack of credit card bills may have you thinking credit cards are no good, the reality is that credit cards can be great for getting out of debt, if you choose the right ones.
You need a 0% or low interest credit card to consolidate your current credit card debt into one monthly bill. In many cases, no or low interest credit cards are a better deal than a loan.
When you get a debt consolidation loan, you will begin to pay interest on the purchases immediately. When you consolidate all of your credit card bills onto a 0 interest credit card, you will have that introductory period (Often 6 months or more) to pay off the debt amount, without being charged any interest.
That translates being able to get out of debt sooner, and being able to save up a little more money towards this years Christmas shopping list.