It was back in 1950 that the first credit card was created by Diners Club. Since then the easy availability of credit cards has changed the way we buy things. In fact, the case can be made that there has been a credit card explosion since those earlier days ? almost anyone, regardless of their credit score, is routinely bombarded with credit card offer.



Credit cards have since enabled people to purchase items that previously that would have required thrift and savings because they enable spending of more than accumulated in bank accounts. Credit cards have also allowed people the added benefit of not needing to carry large amounts of cash.

It has been projected that most households in the U.S. have four credit cards, or a combined number of thirteen payment cards of various types. These include debit and store cards in addition to credit cards. The actual figure for payment cards being used in the U.S. today is roughly 1.3 billion.

Despite the obvious conveniences, credit cards have not made the lives of consumers in America any simpler. In fact, for many life is much harder!

Studies have shown that due to excessive spending via credit cards, the average monthly household credit card debt is almost $5,000. As a result 1.3 million holders of credit cards were declared bankrupt in 2003.

For the elderly, it gets worse. The majority of Americans who retire find that they only receive 37% of their estimated annual retirement income as a result of debt repayments. Consequently, they then need to turn to friends and family, government handouts, and even charity to survive financially.

Do you face a similar risk? If you have debt spread out over several cards, it would be worth weighing the option of a credit card consolidation.

Credit card consolidation is a way of placing every credit card debt you have onto one card. This way you only have one payment each month. Not only will this eliminate the stress of making several payments per month, but there are other benefits:

* Lower interest rates

* Fees for late payments and overtime are canceled

* Reduced monthly payments

* Short term debt relief

* Credit repair

* Additional savings over a period of time

There are two types of credit card consolidation.

First, you can use a credit card counseling firm. Such firms come to a person's aid by consolidating all their monthly payments into one bill. Then from this bill all of the individual creditors are paid. These payments continue until all debts are paid off in full.

The other type involves using a secured loan either with the equity in a house or some other item of significant value. Doing this, a person swaps a debt that is not secured (i.e. credit card debt) for one that is secured (based on a possession that has a large amount of equity).

You should note that by consolidating your credit cards you are not simply making them disappear. However you will have a more manageable means of dealing with them, enabling you to save money and become debt free more quickly.