Debt Consolidation Loans, Can They Help Me Get Out Of Debt?
Debt Consolidation If you own a home, a secured debt consolidation loan may be a debt relief option to consider but not recommended.
Keep in mind, debt consolidation loans do not get you out of debt it rearranges your debt This type of loan is essentially a home equity loan which is used to pay off your other creditors.
Secured debt consolidation loans supposedly help many consumers by consolidating all of their debts into a single monthly payment with a lower interest rate and payment amount.
However, be very careful when you borrow money against your home to pay off credit cards and other unsecured debts.
You are then converting unsecured debt into secured debt This could cause you serious problems for some reason you are unable to make your payments on time.
Debt Consolidation Loans are unfortunately one of the most common solutions people think of when they fall into financial difficulties.
Borrowing money to repay "borrowed" money does not solve the issue of debt especially if you're living on a tight monthly budget.
It is a fact that about 75% of people who get a debt consolidation loan find themselves in more financial trouble than they were in to start with.
The simple reason being...
You cannot borrow your way out of debt! Debt consolidation loans will not get you out of financial trouble and most of the time will only make matters worse.
The IRS is advising consumers that they are cracking down on these types of loans for not offering consumers the proper facts.
Debt consolidation organizations get paid big commissions for signing you up for these loans.
The more they lend, the more money they make.
Many debt consolidation companies just want to lend you the maximum amount their allowed.
The higher your debt the more money they make.
In recent years, the media and many financial experts have raised many concerns about the use of debt consolidation loans.
In many circumstances, financial experts believe debt reduction though services like attorney debt negotiation is the much better solution.
Attorney debt negotiation offers the solution to dramatically reduce your debts without having to risk your home.
Since bankruptcy laws changed to where consumers can't discharge credit card debt in most cases, attorney debt negotiation has become the ultimate solution for effective debt relief.
Now as an informed consumer, you do have alternatives to a debt consolidation loan, where unsecured debt is not "shifted" to secured debt.
Keep in mind, debt consolidation loans do not get you out of debt it rearranges your debt This type of loan is essentially a home equity loan which is used to pay off your other creditors.
Secured debt consolidation loans supposedly help many consumers by consolidating all of their debts into a single monthly payment with a lower interest rate and payment amount.
However, be very careful when you borrow money against your home to pay off credit cards and other unsecured debts.
You are then converting unsecured debt into secured debt This could cause you serious problems for some reason you are unable to make your payments on time.
Debt Consolidation Loans are unfortunately one of the most common solutions people think of when they fall into financial difficulties.
Borrowing money to repay "borrowed" money does not solve the issue of debt especially if you're living on a tight monthly budget.
It is a fact that about 75% of people who get a debt consolidation loan find themselves in more financial trouble than they were in to start with.
The simple reason being...
You cannot borrow your way out of debt! Debt consolidation loans will not get you out of financial trouble and most of the time will only make matters worse.
The IRS is advising consumers that they are cracking down on these types of loans for not offering consumers the proper facts.
Debt consolidation organizations get paid big commissions for signing you up for these loans.
The more they lend, the more money they make.
Many debt consolidation companies just want to lend you the maximum amount their allowed.
The higher your debt the more money they make.
In recent years, the media and many financial experts have raised many concerns about the use of debt consolidation loans.
In many circumstances, financial experts believe debt reduction though services like attorney debt negotiation is the much better solution.
Attorney debt negotiation offers the solution to dramatically reduce your debts without having to risk your home.
Since bankruptcy laws changed to where consumers can't discharge credit card debt in most cases, attorney debt negotiation has become the ultimate solution for effective debt relief.
Now as an informed consumer, you do have alternatives to a debt consolidation loan, where unsecured debt is not "shifted" to secured debt.
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