Pros And Cons Of Debt Consolidation

Lets dispel some the myth and misinformation on Debt Consolidation

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Debt consolidation programs can help you bring all of your unmanageable debts into a single monthly payment, often less than the combined amount of those bills. It does not eliminate the debt. These programs only negotiate a lower interest rate, collect them all together, and help you find some relief and simplicity in your life. Only bankruptcy has the potential, and potential ONLY, of eliminating the debts themselves. If you can avoid bankruptcy do so at all costs.

Debt consolidation will not, in and of itself, improve your credit rating. What will happen, however, is that when you consolidate your debts and are able to manage the payments each month you will stop sending in late payments. When this detrimental behavior is stopped, you should begin to see your credit rating improve.

Debt consolidation is not only for people who have hit bottom. Often, negotiating a lower interest rate, combining the payments into one single monthly payment, and addressing the behavior that created the overwhelming debt in the first place, anyone who is having or will have trouble can find an advantage in Debt Consolidation.

If, however, you are facing more than four credit card statements every month, are still spending more than you make, and can feel that burning, acidic knot in your stomach whenever you actually face the prospect of paying the bills, then Debt Consolidation or negotiation, may be your only way out.

This last is the most important thing you need to realize. The credit card debt is the symptom of your behavior. I am not trying to make any moral judgments. It wouldnt do any good if I did. But if you do not change the way you deal with your money, any Debt Consolidation plan will show only short term benefits. It may get you out from under the crushing sensation of the debt, but without changing your behavior and concept of money, you will be right back in the same painful place that your are today.

These programs may unlock the problem for you and let you live with your debt, peacefully, until it is paid off. Then, hopefully, it can become a nasty memory that you no longer want to relive.

by: G M Potter

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