For individuals who carry a balance on several credit cards, debt consolidation, with the necessity to make only one monthly payment, offers an attractive opportunity. Using this approach, debtors can lower interest rates or the overall size of required minimum payments.
Number
Jim Tehan, spokesman for money management website Myvesta Foundation, recommends that most people should carry no more than two credit cards while trying to control debt. The more cards people carry, the more opportunities they have to get deeper into credit card debt.
Considerations
Tehan asserts that if people think they might be having money problems, they probably are. For anyone having trouble making the minimum payments on credit cards, consolidation presents some relief.
Prevention/Solution
In addition to lowering overall monthly credit card payments, consolidation can relieve some of the emotional stress that comes with credit card debt. By receiving fewer credit card bills and sending back fewer payments, people simplify their financial lives, which can provide peace of mind.
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