THE TRUTH ABOUT DEBT CONSOLIDATION

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The Truth about Debt Consolidation

Many debtors who are overwhelmed with debt are likely to find that debt consolidation offers them the relief they need from their demanding financial situation. And indeed, debt consolidation debt relief sure does organize one’s debts. Instead of spreading an income among several payments over the course of a month, debt consolidation combines unsecured debts into a single bill. Add in the advantage of a lower interest rate, and most debtors jump at the chance to try debt consolidation. But what, if any, are the disadvantages of debt consolidation? And do you really know all the facts about debt consolidation?

Before signing up for a debt consolidation program or applying for a debt consolidation loan, you must know the truth about debt consolidation. Although it might be nice to ignore any negatives and believe that there is a miraculous way to eliminate debt overnight, there exists no such thing, so it is time to get real. The truth is that debt consolidation can be a very helpful tool when used to organize debt and manage money efficiently. However, if you are looking to become debt free quickly, debt consolidation is not your one way ticket to debt freedom.

There are two variations of debt consolidation. The first is a debt consolidation loan. This is a loan from a bank or credit union that you will use to pay off all of your unsecured debt, leaving you with only the debt settlement loan to pay back. Unfortunately it is necessary for applicants to have good credit, the ability to pay the loan and a form of collateral in order to be approved for the loan. The truth is that a debt consolidation loan is a method of debt resolution that is not feasible for the average debtor. Even if you can obtain the loan, you must be able to pay it for the next ten to twenty years. Remember that debt consolidation loans transfer unsecured debt to secured debt, meaning that if you are remiss in your payments, you could lose your collateral.

The second variation of debt consolidation is the debt consolidation programs offered by debt consolidation companies. It is not difficult to enroll in one of these programs and they offer many of the same benefits of a debt consolidation loan, such as a single payment and a lower interest rate. The truth about debt consolidation companies is that they charge you a fee which they deduct from your monthly payment. This means that you are not paying the creditor as much as you might think, and also that you could be lengthening the life of your loan by participating in such a program.

Why Debt Settlement is Better

The truth is that when it comes to becoming debt free, debt consolidation won’t get you there fast. Credit card debt settlement is a better choice for debt relief than debt consolidation because debt settlement can eliminate your debt in 12 to 36 months. For more information about debt settlement, please fill out our no obligation debt settlement form.

When you enroll in our debt settlement program, your personal debt settlement coach will review your finances and create a budget for you to follow during the settlement program. Then your coach will begin contacting your creditors and negotiating with them. Our debt settlement experts will negotiate a lump sum payment of your debt that will be 50% or less than you actually owe. With our debt settlement program, you can payoff your debt and become debt free for pennies on the dollar.

Why waste time with debt consolidation when it doesn’t deliver the end result that you desire? Debt consolidation loans are hard to obtain and debt consolidation programs are a waste of money. The truth is that if you want to become debt free, you should enroll in our debt settlement program. Please take a moment to Fill out our free, no obligation debt settlement form.