Credit Card Debt Consolidation Programs

There are many programs out there that try to make you believe that consolidating your debt is the best solution: one payment, easier to manage and easier to pay off.

WRONG. Consolidating all your debt into one monthly bill may seem like a great way to take control of your debt, but you must be careful, Debt Consolidation Loans have a catch that can cost you.

When you are loaned money to pay off your debt, you have one monthly bill which is paid to the lender, often these loans do not have a lower APR and can be as high as 24%.  AND HERE IS THE CATCH: In order to receive favorable terms and debt reduction, a property must be put up as collateral, such as a home or automobile. If you don’t have a set plan to manage your finances after receiving reduced payments and lower interest rates, you face a great risk of losing more than you previously have. You face foreclosure of your home and repossession of your auto as well.

Finally, another sometimes hidden issue with debt consolidation is that, although the monthly payment and interest rate are reduced, the term is often extended as well, actually increasing the total amount owed.

If you decide to take this route we urge you to read the documents carefully, READ THE FINE PRINT, ask questions and ask for where the answers are in writing in the documents you will be signing.