Many people are up to their eyes or necks in credit card debt, and that’s the purpose of the video. The speaker talks about getting out of debt because Americans currently owe more than $1 trillion on their credit cards.
Credit cards are great items to have in emergencies. However, credit card companies usually charge consumers an overwhelming interest rate to borrow the money on the card. Struggling credit cardholders typically end up paying the minimum amount every month, which usually gets eaten up by the interest.
The speaker gives some good advice about how a consumer can find his or her way out of credit card debt. One way is to negotiate the interest rate. A consumer will see a vast difference in the monthly payments if the creditor lowers the interest rate. Cardholders could save thousands of dollars each year that way.
Consolidation is the second way for a consumer to get out of credit card debt. A consolidation loan may be possible if the lender feels that the consumer can make the payments. The alternative method is debt consolidation which involves paying a debt management counselor and having that person pay the creditors. That arrangement usually happens after a debt management company does debt negotiation to get the client’s balances down.