Debt Consolidation Should not be Discarded As A Debt Eliminayion Technique

There are those who do not support debt consolidation as method of debt elimination

. This could be from looking at debt consolidation in a specific light and refusing to look at the constructive aspects if its done correctly.. Those that hold this hypothesis only look at one technique it can be done and for some reason reject to look at other possibilities.

Debt consolidation done correctly can help you to become debt free quicker.. The technique of consolidation that I cannot endorse or would not advocate, is one which leaves you open to the possibility of future complications or putting you a more complicated position than you find yourself now.

This encompasses rolling existing credit card debt from various high interest cards to a new low interest or zero interest card. Why? Since 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 reduced by the new credit card act of 2010, however this new law only calls for the issuer to give you a certain amount of time before they can increase both and fees substantally. In fact any method of debt elimination that leaves you in position of uncertainty is not sound. It solves your problem temporarily but leaves you with considerable risk.

The correct technique for debt consolidation is one that includes a fixed rate for the length of the new loan and does not permit new fees to be imposed. This can be accomplished through either a fixed unsecured loan, depending on your credit, and a home equity line of credit.. These types of loans result in one monthly payment making it easier to manage and less likely to be late or miss a payment and thereby hurting your credit. The added benefit is that since your monthly payment is now reduced, the difference can be used to pay down debt allowing you to become debt free quicker.

Just any other debt elimination technique that is done correctly, debt consolidation can offer you some nice advantages. Not done the right way may put you in a worse position. That's why professional help of someone experienced in the particular debt elimination method you choose. Individuals that frown upon debt elimination methods do no comprehend or think of all the possible ways to carry them out. You should be maintain an open mind, study and consult with someone before making any decision on which method you will use to become debt free.

Debt Consolidation Should not be Discarded As A Debt Eliminayion Technique

By: To Morton

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