Debt Consolidation: Help or Danger?
If youíre still in high school, as rich as Croesus or a favorite of Lady Luck, perhaps the term debt consolidation wouldnít even ring a tiny bell to your ears. But if youíre like the rest of us, with a huge number of bills to pay month after month, creditors to alternately hide from and beg, then Iím sure you know what debt consolidation is all about. But just for the heck of it, letís assume that one of this articleís readers has been sleeping under a rock and has no idea what weíre talking about. But the fact remains that he does need a little help financially. Well, debt consolidation is the process of accumulating your bills for one month, adding them up and giving them over to the kind debt consolidation specialist whoís willing to help you for a teensy weensy price. Instead of paying off some, disregarding the others, you get to pay just one flat rate every month and thatís it.
Finish. Sounds wonderful right? And because Iím a good person, Iíll discuss the merits of debt consolidation and the numerous ways it can help you. The first important thing that debt consolidation can help you with is getting your creditors, bless their nagging souls, off your already aching, heavily burdened back. We all know how these creditors can be nasty at times. Theyíre good at semantics and etiquette, Iíll give you that, but a threat is still a threat, albeit nicely worded.
The phrase ďto avoid taking legal actionsĒ never cease to make us shudder, doesnít it? But thatís when debt consolidation come in to help you. With your permission, they take charge of your creditors. You need not see them again anymore. Big help right? Big, big help! Now, the next form of help that debt consolidation companies provide you with is part of the program youíll be working on with whoever your debt consolidation specialist is. One of the questions theyíll ask you is just what kind of help do you need. Do you want your monthly payments to be significantly lowered? Do you need help to keep your interest rates low? Do you require help in talking your bank manager into giving you an extension on the deadline of a loan youíve taken? The help youíll get from debt consolidation depends on the program youíre going to take but rest assured that what you want, you will get. Itís not however a bed of roses with all debt consolidation companies. Sometimes, they help you the other way around. If you had the misfortune to make business with an unscrupulous debt consolidation firm, then that firm may just help push you into further bankruptcy. One way to avoid this is not choosing online debt consolidation companies and not releasing classified information about yourself unless needed.
Iíve said this before but Iíve said this again. In the end, itís what you want that matters. Those outstanding bills do not signify the end of the world for you. Where thereís a will, thereís always a way, albeit sometimes rocky. You alone can help yourself and if you think debt consolidation is the way to do it, then so be it. But if youíre hesitating a bit and you think that youíre better off without external help and relying on yourself, then thatís a good thing too.