Credit cards have revolutionized the purchasing experience since Diners Club released the first credit card in the year 1950.

The Dinners Club credit card gave consumers limited credit
that, at times, even surpassed the personal savings of some
participants. It allowed them to buy items they usually
could not afford if they were to make a straight cash
purchase. It also provided the convenience and safety of
not having to carry large amounts of cash.

On average, American households possess 4 credit cards or a
total of 13 payment cards if debit cards and store cards
are included. There are, actually, 1.3 billion payment
cards of assorted types in circulation in the United States.

But, if you think that credit cards have made the lives of
modern American consumers easier, you may be wrong…

Statistics show that the average credit card debt for each
household in the U.S. is $4,800 per month. Also, there were
1.3 million credit card holders declaring bankruptcy in the
year 2003. This figure is almost guaranteed to decrease
since the change in bankruptcy law. A filer is required to
pay back a portion of their debt if they are financially
able. There are many other changes, mostly for the benefit
of the credit card industry and you can find more
information at:

http://credit.about.com/cs/legal/a/040601.htm

And if you still consider yourself unaffected by credit
card debt, then consider this: upon retirement, most
Americans can only expect to receive about 37% percent of
their annual retirement income because of prior debt
payment. This will leave many individuals depending on the
government, family and charity for economic survival.

These are some scary facts. So before you find yourself in
a position of economic uncertainty, it might be wise to
evaluate your spending and current credit card debt.

If your credit card debt exceeds what seems to be a
reasonable level, you may want to consider credit card debt
consolidation.

So what is credit card debt consolidation?

In a nutshell, credit card debt consolidation is taking all
your credit card payments and consolidating them into one
monthly payment. This way, you don’t have to worry about
managing the payments individually. Aside from this
advantage, it may also provide you with the following
additional benefits:

- Reduce interest payments
- Waive late and overtime fees
- Reduced monthly payments
- Debt relief in a shorter time
- Credit improvement
- Save more money in the long run

There are actually two major types of credit card debt
consolidation…

You may want to consider a Credit Card Counseling firm.
They assist consumers by consolidating all their monthly
payments into one single payment and then dispersing this
to the creditors on behalf of the consumers.

The other type is through a home equity loan or other
secured loan. This is done by exchanging an unsecured debt
(such as
credit card debt) for a secured debt (a debt backed by
specific assets such as real estate).

Now, credit card debt consolidation isn’t a magic balm that
will drive all your credit card debt malaise away. But, it
will make paying all your debt easier and might save you
money in the long run. Definitely an alternative worth
considering…