NIU

Bill consolidation

Posted by Stacy on Wednesday, March 26, 2008 3:48 PM

When people incur debt they never realize what the consequences will be. Everywhere you go, someone is offering you a credit card. After awhile, it seems that to accept it is the natural thing to do. Every check-out clerk asks if you will be using their credit card. If you say you do not have one they immediately offer you a store credit card. This has become an acceptable practice but is not the least bit consumer friendly. Why should I have to be subjected to this sales pitch every time I shop in their store? The motivation behind this hard sell is profit. Interest rates on these credit cards are extremely high, sometimes crossing the line to astronomical. Who wouldn’t want to finance purchases when the profits are so great? It is more profitable than the merchandise sold in the stores which explains why every sales clerk is instructed to question your charge account choice and told to advise you of the great advantages you are passing up by not signing up immediately for their credit card.

People who succumb to these sales pitches are often the same ones who find themselves eventually in need of financial counseling and debt consolidation. If you accept these offers on a regular basis because of all of the enticements, you will accumulate numerous credit cards and all of them will probably have balances. Some of the offers include 12 discounts a year plus an additional 20% off of today’s purchases. If you are buying a large ticket item, this could be a great savings and one which you feel you can not afford to miss. I, too, am tempted when making a large purchase. After all, 20% off a $300.00 purchase is a $60.00 savings. Why would I want to spend an additional $60.00 for an item if I can fill out an application and save that money for something else I would like to purchase in the future? This is how they reel you in and get you to agree to complete the application. They tell you it will only take a few minutes. This is a lie. Only once did I agree to do this when I was Christmas shopping many years ago. I completed the short application as I was purchasing between $400 and $500 worth of merchandise and this seemed worthwhile to me at the time. The salesperson took my information and then proceeded to call a credit office. They ran all of my information as I waited. This took approximately a ½ hour and I was definitely not happy with this “quick process” which I was promised. When the application was approved and my purchases ware entered into the register, the salesperson informed me that the items I purchased were excluded from the discount offer. I cannot tell you how upset I was. I went home and immediately cancelled my new credit card and will never again accept a credit card offer of this nature. I have learned my lesson the hard way.

Many people, however, do accept all of these offers and have cards in many stores. They have cards for Kohl’s, Target, Macy’s and Wal Mart, etc. In addition to these, they have a Visa, Master Card, Discover and American Express. How many cards can an average household manage? The answer is probably, not this many. Trouble is most likely just around the corner. Charges are made on all of these cards and, eventually, it becomes necessary to consider debt consolidation. 

Bill consolidation is a means of paying off your existing debt in a manner that will eventually make you debt-free. This is not easily accomplished but, if you work hard at it and are diligent with your regular payments, you can eventually become debt free. One of the secrets to debt consolidation is to obtain the lowest rate possible with the highest credit limit. Sometimes these offers are mailed to you unsolicited. If this is the case, consider applying for one of these cards. They want your business and you can use their offer to your advantage. This is the answer to your problems.