debtconsolidationconnection.com
501 (c)(3) non-profit Organization
Free Consultation
Credit card debt continues to be problem, though debt consolidation may help avoid delinquencies, defaults
By Marvin Milner on Mar 6th, 2010
One of the main reasons why consumers may consider debt consolidation is because they are having trouble keeping up with credit card debt.
A recent report from Fitch Ratings shows that more people have had difficulty paying off their credit cards, as the charge off rate on these accounts increased in January. The firm's charge off index increased to 11.52 percent, the highest rate seen since September of last year.
However, signs of potential improvement in defaults were also posted during the first month of the year. Late-stage delinquencies declined to 4.16 percent, which means defaults could also fall later as fewer people are late on payments.
Early-stage delinquencies also fell, dropping to 5.38 percent. That is 5 percent below the numbers reported for February 2009.
Consumers who are looking to avoid being accounted for in either the default or delinquency categories may consider finding options to pay off their credit card debt. One of those may be debt consolidation, which can help consumers organize their bills into one payment.
Another benefit afforded by debt consolidation is that it may lead to lower interest rates, which could allow consumers to keep more of their money in their pocket.
More Debt Consolidation News
