subject: Debt Consolidation Good Or Bad – The Right Decision To Fulfill Your Goals [print this page] Debt Consolidation Good Or Bad The Right Decision To Fulfill Your Goals
Consumer debt has skyrocketed in recent years, as the results of living beyond their means has begun to catch up with many individuals and families.
Debt consolidation is one option in the pursuit to recover a positive credit history and many people have questions as to whether employing this option is a wise choice, or a foolish mistake.
Aurora Lillo Editor of the "Best Debt Consolidation Companies" website -- http://www.BestDebtConsolidationCompanies.net -- pointed out;
"...While their are pros and cons to consolidating your debt, the truth of the matter is that it puts a stop to harassment from debt collectors and it immediately allows you to begin rebuilding your positive credit activity, boosting your credit score in a short period. Any way you shake it, consolidating your owed money and paying it off immediately is a better option than simply ignoring the problem in hope that it will go away..."
Consolidation Facts
While many debt relief companies gloss it over, the truth of the matter is a consolidation is essentially taking out a single loan to repay all of your other loans at one time. Therefore, when you enroll in a consolidation plan, you should expect to pay an initial registration fee as well as monthly interest charges on your new loan. These interest rates are sometimes higher than the rates you may be paying to your individual creditors. However, by streamlining your payments into one affordable monthly installment, you completely eliminate the staggering late fees you are likely accruing every month due to an inability to make minimum monthly payment to each of your lenders. For this reason, debt consolidation may save you considerable amounts of money, even with higher monthly interest rates.
In addition, when you have a large lump sum of cash in hand, many creditors are willing to negotiate settlements with you that can reduce your total amount owed by up to 50%. This can reduce your financial burden by staggering amounts, freeing you up to focus your finances on paying off your consolidation loan and move forward with your financial dreams and aspirations.
"...Since consolidated debts are streamlined into one monthly payment, many men and women find that consolidation eases a great deal of stress and allows them to experience the peace that has eluded them due to financial strain. In short, one monthly payment is exceedingly easier to keep track of than multiple payments to harassing creditors that call you and your associates regularly in order to demand payment of monies owed..." added A. Lillo.
Further information about trusted and reputable companies for debt consolidation by visiting; http://www.BestDebtConsolidationCompanies.net
