I wonder how many people reading this article are old enough to remember S & H Green stamps? These trading stamps made a small fortune for Sperry & Hutchinson back in the fifties and early sixties. Consumers felt they deserved to get the stamps with everything they purchased from gasoline to groceries and merchants felt they had to offer them or lose out to competitors. Then one day, everybody woke up and realized this was a middle man raking off money on every transaction and that it was costly to both business and consumers. Thus S & H Green stamps became obsolete.

Today we have a similar situation with credit cards. I recall in the fifties when you could go into a retail store and buy a television set and the merchant himself would carry the credit, at reasonable terms. Now most retailers accept credit cards on purchases, even if you are making small purchases. Like S&H Green stamps, this is costly to consumers and businesses alike.

A merchant will typically pay from one to two percent of every transaction to the credit card companies. The credit card company gets it from both sides because they also charge the consumer interest rates of upwards of 30 percent. In addition they make excessively high fees for over the limit fees, late fees and whatever else they can add in.

Have you ever wondered why it is so easy to get a credit card? Why is it that credit card companies don’t worry about whether or not you can pay? Here’s the answer. If you default on your payment, the merchant still has to pay. The credit card companies can’t lose but the merchant can.

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These days it is so easy for anyone to obtain credit, whether it be credit cards personal loans or overdrafts, and getting yourself into financial trouble has never been easier. Unfortunately financial intelligence is not a subject at school and right from day dot we are taught all the wrong things about what to do with our money.

Most of our education comes from banks and financial institutions who advertise their products or hold little courses to teach you how to get the best interest rate on loans that you will pay off for the rest of your life through them! It is all designed to make them more money, however it doesn’t have to be that way.

If only we were taught the basics of money management when we were younger then I believe the world would not be in this financial crisis we are currently in.

The very basics that I believe should be taught at school are;

- Always save 10% of your wage no matter what.

- Only have one credit card for emergencies and always pay it off before the interest free period ends.

- Invest for the long term. Look 10 years ahead when buying property.

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To get assured and satisfactory relief from your debts you can opt for the debt consolidation loans. These will show you the best way to take care of your debts and no tension will you have to take further.

For obtaining these loans it is very essential for the borrower to be eligible. Your eligibility to get these loans will be decided only on this basis that you have more than two debts and the payable amount is £5,000 or above that. After proving these things you will be allowed to go for any one out of the secured or unsecured loans.

The secured and unsecured are the two forms of the same loan. These are being divided in order to meet your particular needs. Secured loans aim at helping you through a bigger amount. The rate of interest of these loans is very low and you will get a good repayment term for paying it back. Offering any valuable property of yours is essential if you want to get these secured loans.

The unsecured loans will not harass you by asking for the collateral. The offered amount in it is small and will be therefore, ideal for small debt repayments. But the rate of interest is high in it and for avoiding it you can opt for other loans.

After you take up any of these loans it will merge all your debts into one and the result will be that you will have to pay only one loan each month. Along with that the rate of interests too will be united. So, the burden of repayment of your debts will disappear and managing a regular repayment will be easier for you.

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Debt consolidation loans for bad credit are available to those in severe financial situations and need away to avoid bankruptcy, garnishments, repossessions and other creditor tactics. A debt consolidation loan can help you delay the further worsening of your credit by paying off the debts you have with creditors and consolidating it all into one loan paid once a month under one due date. This is a popular choice for those in difficult situations and has worked for millions.

Before deciding with debt consolidation loan or loan company to go with it’s important to take the time to do your homework and make sure the company and loans being offered are legitimate and solid. While, debt consolidation loans for bad credit have gotten some negative press because of previous unregulated companies charging incredibly high interest, that has all changed and the companies and debt consolidation industry and strictly regulated now. Look for a company who’s been in business a long time and can offer references and quality service for minimal payment. This is about getting out of debt and shouldn’t put you further in debt to do.

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Suppose you find yourself in a difficult financial situation. The monthly expenses have become overwhelming and you are paying an outrageous amount in interest charges every month. You have decided to consolidate you debt and someone suggests that credit counseling could be helpful as well. Is that truly the case?

Often the case is that excessive debt is the result of uncontrolled spending. Even if debt consolidation helps reduce or get out from under your debt, credit counseling may help you keep from repeating the same mistakes and finding yourself right back in the same situation. If you can make and stick to a good budget you can improve your financial situation long term. You can get the direction you need through credit counseling.

Credit counselors do more than offer advice. They negotiate with your creditors in your behalf to lower interest rates and eliminate late fees and over limit charges.

It is a big decision to consolidate your debt. It can be quite stressful to try to change your financial habits and recover from setbacks and mistakes. Though the outcome makes the effort well worth it, it can be hard to make these changes without guidance. Credit counselors give you the needed support to make positive changes with desired results.

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