Don't Consolidate Your Debt!
Discover 5 Reasons You Should NeverConsolidate Your Debt.
5 Reasons To Avoid Debt Consolidation!
When you are faced with financial difficulties and debt, debt consolidation companies start looking good. They will strive to offer you a way out. They will tell you how easy it is to consolidate all of your debts into one easy payment. It sounds easy. It looks good. It seems to be a quick solution to your financial problems.
What these companies won't tell you is the dangers involved. They will not tell you why this method should be avoided. Following are 5 reasons debt consolidation is a bad idea.
Reason #1 - Debt consolidation has a high failure rate. It is a loan, which requires collateral. Basically, getting this type of loan turns unsecured debt into secured debt. Even though payments may be reduced, the debt is simply paid over a longer period of time. Only now, you have more to lose. You couldn't pay the bills before. You probably won't be able to pay the bills now, especially if your spending habbits haven't changed. The debt was just moved around - it wasn't eliminated or made smaller.
Reason #2 - You still have to pay all of the debt, plus interest. The loan is stretched out over a longer period of time, which means that you are in debt longer. This also means that you will be paying more in interest fees than you were with the original debt. Most people just see the lower interest rate with consolidation, but don't take into account the amount of interest they will have to pay over time.
Reason #3 - You must have collateral. This usually means a mortgage, or in some cases, a second mortgage on your home. If the debt that you are consolidating is unsecured debt - such as credit card debt, it just became secured debt. Not only are you now paying more money, on more debt, but now you have more to lose in the event that you cannot make the payments.
Reason #4 - You won't learn how to manage your debt or your spending. The only thing that you've found is a quick, temporary fix to your financial problems, without finding any real, long - term solutions.
Reason #5 - If after securing a debt consolidation loan, you become ill or lose your job, and you cannot continue making payments, your options are now limited. Chapter 7 bankruptcy is only a good option for those with un-secured debt. Debt resolution will also no longer be an option. The last option you will have, is filing chapter 13 bankruptcy. This isn't good either, because it is a debt restructuring program that gives your creditors more authority to enforce collections and take away assets.
Our Debt Resolution program can help you eliminate 90% or more of your debt. Our program is the only of its kind. We have a network of trained attorneys that can help you get out of debt in less than 2 years. This is NOT a repayment plan, debt settlement or debt consolidation.
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