To consolidate or not to consolidate — that is the question. That would be a take-off on a famous line by Shakespeare, “To be or not to be, that is the question.” It is a question that many people ask themselves everyday.
Overburdening debt has grown to epidemic proportions in America today, and more and more people are seeking relief. The tightening of the bankruptcy laws last year has made getting out of debt even more difficult than it once was.
Pros:
Most people believe that the basic ideas of the value of a debt consolidation loan are that the loan will reduce the monthly payment obligation and that it will stop harassing phone calls and letters by debt collectors. It is true. A debt consolidation loan does, in fact, do those things, but that is not all that a debt consolidation loan does.
The most important benefits that a debt consolidation loan provides are that it will stop interest from accumulating on credit card debt, and it will provide a permanent “fix” to too much debt for the borrower. There will be an end in sight.
Cons:
It is also true that making a debt consolidation loan does adversely affect a borrower’s credit rating. There is a negative impact that will be felt for up to seven years. On the plus side of that negative impact is that at the end of the seven years, there will no longer be any outstanding credit card debt or late payments that will still be affecting the credit rating.
The debts will have been paid in full. The balance owed will be zero! Zero is a beautiful number when it is on the line that says, “Balance Due.”
Milos Pesic is a professional Debt Management consultant who runs a highly popular and comprehensive Debt Consolidation web site. For more articles and resources on debt management, debt consolidation programs, free debt counseling and much more visit his site at:
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