Government Debt Consolidation Loans May Help Real People

With all the recent talk about bailouts and stimulus packages, I'm curious how this affects government debt consolidation loans [http://governmentdebtconsolidationloans-update.info]. Since the government is willing to give hand outs to major corporations, it would be nice to help out some real people along the way as well.

Not all government debt consolidation loans are unsecured. People who take out loans without any colladeral have what are called unsecured debt consolidation loans.Such loans are availed to pay off credit card debt or medical bills. Normally, debt consolidation is undertaken to reduce and eliminate debt by paying off a high-interest unsecured loan, like credit card debt, with a low-interest secured loan like a home equity line of credit. Debt consolidation thus helps in lowering interest rates, which works in the long run to eliminate debt faster.

Government debt consolidation loans are not secured by any collateral like a home or a car. Most of these are loans for personal use. Personal loans are one way of paying off credit card debt if one does not own a home or a car. A lot of banks will offer these kinds of plans to help their customers as long as they have a good banking history with them. But the interest rates on these kinds of unsecured loans tend to be much higher than those secured with some kind of collateral like a house or a car.

So why isn't the government stepping in with easier terms for government debt consolidation loans? If they're willing to help out GM and AIG, then they should be willing to help out my buddy down the street. Perhaps the secret is to just use initials for your name on the application for a loan. And be sure to throw a big party afterwards. And then give yourself a bonus of course.

While governement debt consolidation loans are a wonderful idea, I'm not certain that they are the solution to problems with debt. The majority of individuals wind up in the same financial pickle within a couple of years unless they learn how to manage their money. Financial literacy, not more loans, is the real answer.

So while government debt consolidation loans can provide short-term relief to help people find their footing, they are not the bailout people need to get rid of their debt problems. Government debt consolidation loans are a great temporary option for certain people, but they are not always the right course of action for everyone.

For more information about government debt consolidation loans, visit [http://governmentdebtconsolidationloans-update.info].