California Debt Consolidation Loans

According to Money Magazine, credit card late payment fees almost tripled between 1994 and 2004. While in 1994 the average fee was $12.55, the average in 2004 was $32.65. Because of this hike in fees, debt consolidation loans in California have become a lifeline for many consumers.

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Imagine this scenario: John, a resident of San Diego, California, has 5 credit cards. One day he loses his job without warning, and he has no savings to dip into. It takes him a month to get back into work, he has to wait a month for his first paycheck after that, and as a result of this he misses payment on his credit cards for 2 months. The fees for non-payment amount to over $320. These fees push him over his credit limit, and he has trouble bringing his balances back down. Before he knows it, he’s swimming in uncontrollable debt.

This isn’t an unusual example. Most people these days have one or more credit cards - which is fine as long as they can keep up the payments. If they hit any bumps in the road, though, it can be surprisingly easy to lose control.

Fortunately, debt consolidation loans can help control these debts. By consolidating your credit into one affordable loan it can be much easier to meet payments on time, avoiding late payment fees. While the interest rates on debt consolidation loans can be slightly higher than the average rate, their help in cutting out late payment fees makes them more than economical.

If you are considering a debt consolidation loan, this can be a useful exercise: work out how much you paid in late payment fees last year, and then compare that amount to the cost of a debt consolidation loan you’ll soon see how much money you could save!