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The following is a guest post. Enjoy!
Understanding the Debt Consolidation Solution
The Limitations of Debt Consolidation Loans
It may even be that a change of lifestyle can help get your finances back under control more quickly and easily than applying for a debt consolidation loan. If this is the case, then look for a zero interest credit card transfer deal and use the free period to pay down the balance. This will be far cheaper than any new loan can ever be.
How about you all? Have you ever used debt consolidation loans? If your debt was spiraling out of control, what method would you use to combat the problem? Did you ever consider 0% interest credit card balance transfers?
Share your experiences by commenting below!
Jacob’s Thoughts – Listed below are my random thoughts as I was reading this article.
- Great article here! One thing I’ve always wondered is if there are any qualifications (such as income level) in order to obtain a debt consolidation loan? Does any one have any experience with this?
- I think that it’s also important to point out that debt consolidation loans are not an “easy way out.” They should only be used if someone is having real trouble making the minimum payments on their credit cards each month, whilst still having enough money to live on.
- For most people, who merely have more debt than they’d like and want to get rid of it, debt consolidation most likely is not the solution. However, what is the solution is to 1) collect your debts, 2) finalize your Debt Free Action Plan, and 3) call your credit card company to get your interest rate reduced.
***Photo courtesy of http://www.flickr.com/photos/exurban/4857586543/sizes/m/in/photostream/