Debt consolidation as a program of debt elimination technique has supporters as well as those that steadfastly oppose it
. This could be from looking at debt consolidation in a specific light and refusing to look at the positive aspects if its done correctly.. Those that hold this position only look at one mechanism it can be done and for some reason reject to look at other possibilities.
As I said, there are methods that debt consolidation cab be a very beneficial and help you be debt free faster. The method of consolidation that I cannot support or would not recommend, is one which leaves you open to the likelihood of future problems or putting you a more difficult situation than you find yourself now.
One technique which is detrimental in this procedure is rolling credit card debt from credit to another. Why? Because this leaves you vulnerable to future interest hikes and other fees that are at the whim of the credit card issuer. This activity has been somewhat decreased by the new credit card act of 2010, though this new law only requires the issuer to give you a certain amount of time before they can increase both and fees considerably. In fact any method of debt elimination that leaves you in position of uncertainty is not good. It solves your problem for the time being but leaves you with considerable risk.
The correct method for debt consolidation is one that includes a fixed rate for the length of the new loan and does not allow new fees to be imposed. This can be achieved through either a fixed unsecured loan, depending on your credit, and a home equity line of credit.. The result one payment as a replacement for of many, which means that you are less likely to miss or be late on a payment and therefore your credit score, should improve. The nice is that since you have a lower payment the money saved each month can now be applied to decrease your principal balance giving you the prospect to be debt free faster.
As with any debt elimination method if it is done properly and carefully it can have huge advantages. Done incorrectly it can have negative consequences. Thats why professional help of someone experienced in the particular debt elimination method you choose. Those that are negative any of the debt elimination methods do not consider all the possibilities and benefits Study and investigate any debt elimination method you would like to apply and maintain an open mind.