Do you know the credit card debt figures in July 2005? £55.87billion. That is enormous. UK is standing witness to the growing incidence of multiple card holding. 6 out of 10 people have more than one credit card. According to APACS (Association of Payment Clearing Services) two third of adult population in UK is a credit card holder. Guess what, you are part of it. The average interest rate on credit card is 15.75%. No wonder you are in credit card debt. Credit card consolidation is an intelligent step towards finally getting that debt off you.

You probably started off with one or two credit cards and before you knew you were in several hundred of pounds of debt. Credit card consolidation can aid manage this out of control debt situation. Credit card consolidation is the best means of getting a low interest deal in place of high interest credit cards. Basically you are selling your credit cards debt for low interest consolidation loan.

How does credit card holder benefit form credit card consolidation? Let us take a hypothetical situation. Suppose your outstanding credit card debt is £10,000. And the APR or the annual percentage rate is 20% then you are paying £2000 as interest rate every year. By credit card consolidation you transfer all your debts into a single consolidated loan with lower interest rate. Suppose the interest rate is 10%. This way you are paying £1000 as interest rate for the same amount saving 1000 pounds. By researching you can get good rates for
Credit card consolidation.

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In this article, I will expose five mistakes people make with bad credit cards. Unfortunately many consumers with poor credit unknowingly hurt their credit score and waste excessive money on unnecessary fees. Bad credit is a lucrative industry and corporations know consumers are motivated by two major instincts. Fear of not being able to get credit and greed to obtain something for nothing.

Unfortunately consumers with problem credit have fewer choices when it comes to credit cards. Credit card companies assess higher fees and penalties for people with damaged credit so it’s important to make your decisions carefully. If you have poor credit and you’re in the market for a prepaid card or secured credit card, knowing about the following list of mistakes will help you avoid paying unnecessary fees or ruing your FICO score.

1) Non-bank Catalogue Cards

If you receive a pre-approved “gold’ or “platinum” card with a high limit and no credit check required, beware! These cards typically require you to purchase items only from the stores catalogue and scam you into paying merchandise that is overpriced by as much as 50% or more. Also these companies seldom report to the credit agencies.

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As long as you follow the rules and pay promptly every month, you are the most valued customer. I want to clarify the term “most valued”. This definition means that you agree with the steps of the dance. You do not mind paying the high interest rate, which is often more than 20%. You pay even penalty fees if you go over the limit. You suffer from the economic crisis in our country, but still manage to be on time. Why? Because you are afraid that something bad will happen to you. Maybe your Credit History will come in your dream to ask you some questions. You will be ashamed to answer, of course. Has it ever occurred to you that this entire industry, which has become very violent, relies on your fear? This is how it feeds on you. Do you want to continue the same pattern, or do you want to dig yourself out of the financial hole?

Imagine the following scenario. Actually, a very close friend of mine shared this one with me. She was terrified and did not know what to do. Imagine, that your income has been cut in half. You rely heavily on your credit cards until you get back on your feet. As a valued customer, a computer program has watched you. As soon as you start reaching the limit (maybe up to 70%) and still manage to pay the minimum payment, you are dropped out of the “valued” crowd. You will see that your credit card limit has been cut and your interest rate has been increased.

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A huge amount of Americans are in massive credit card debt.

Figures show that the average US citizen has over $10,000 in card debt.

That’s a lot of debt.

We are a must have it now society and what we see, is what we want now. When a consumer has a plastic card, it’s just so easy to take out of your wallet or purse and charge it.

Its not that we have no intention of repaying the bill, but things can spiral out of control

The majority of us have very good intentions when it come to their credit card debts.

They will pay the statement when its their next payday, or if they’re expecting a cash windfall and they’ll pay the balance in full then. Or they figure they can always make payments.

But sometimes life happens, you can lose your job or your health takes a turn for the worst to step in preventing people from paying down their card debt which is how many people get into big financial trouble.

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It is a basic necessity for all of us to have a credit report. Many of us assume that it cost a lot to obtain one hence they put aside the importance of it and not bother to get one which could result in a job loss, property loss or a rejected loan application. Today’s world is tough and the economy crisis often leads us to lenders to help us get through bills and for some, tuition as well. All this would be made easier with a credit report; maybe it’s about time you realize that you can get it for free.

As an American citizen, it is your basic right to obtain a free credit report annually from three of the biggest and most reliable companies of the United States. This would be Equifax, TransUnion and Experian, all of which are required to provide consumers a free script of their credit records upon request at no charge once a year. Of course there are other companies which would let you view your reports more than once a year but that comes with a fee which can be quite a burden if you are not well financially.

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