Debt Consolidation:
Tired of searching for a legitimate company that offers credit card debt reduction?
Another debt management strategy is Debt Consolidation. Debt consolidation is actually a term used for consolidating all of your debts into one. This is typically done by taking out a loan to pay off your debts. The most common debt consolidation loans are home loans.
The consumer credit counseling industry has also picked up "debt consolidation" as a term to describe the credit card debt management programs offered by non-profit credit counselors. However, when we say 'debt consolidation' we are referring to a debt consolidation loan.
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Did you know that by itself, debt consolidation is not a debt reduction strategy?
The reason is that after you get a debt consolidation loan to pay off your credit card debt, you still have the same amount of debt! When you consolidate your debt, all you do is transfer your unsecured debts into secured debts and change the terms of payment.
Still, there are advantages to a debt consolidation loan, because you can usually lower the interest rate on the debts and possibly qualify for some tax advantages. Consolidating can help your credit profile because it has decreased the number of open accounts with high balances. It also makes it easier to have only one single payment every month.
However, there are some problems with consolidation that a lot of people aren't aware of. Most people that consolidate eventually find themselves in much deeper financial trouble than they were in to begin with. In fact, did you know that 92% have recharged their credit cards within 24 months? Once you consolidate, you've just turned your unsecured debt into secured debt. Basically, you'll be paying interest for 30 years on the tank of gas you bought last week.
Have you ever thought about debt consolidation?
By itself, debt consolidation can actually be a weak debt management strategy. Often times, we are able to combine it with a debt settlement program. This allows you to take out a loan closer to HALF of what you owe and fund a settlement program to negotiate all of your debts. You can learn all about how this combination program works in your Free Strategy Session.
At STARTOVERTODAY.COM, we specialize in all debt management solutions , as well as providing financial education and coaching to help our clients design the most powerful debt management strategy possible for their unique circumstances. We also educate our clients and support them in making major financial improvements in their lives by applying the principles of financial literacy.
"I thought it was too good to be true, but now you've saved me over $14,000 in only one month!"
