f you are thinking of by 60% or even more!"
consolidating your debts,
These concepts are surely
watch out for debt attractive and for a regular
consolidation myths and bad moves person who is neck-high in debt
which can lead you further into who is desperate to get out of it
debt. can easily fall into the trap of
Debt consolidation sounds like a these false promises. It is quite
magical solution to help solve understandable how people in debt
all your debt problems. It is in will believe anything and do
fact, quite promising in more anything to just get out of debt.
ways than one. However, take note But remember that if you make the
that consolidating your debts is wrong move, you may end up in
not the same as paying off all even more debt than ever before.
your debts. This is one of the To make sure you do not fall into
pitfalls that many people make this trap. Here are some debt
when consolidating.
consolidation myths you have to
More importantly, you should be wary of:
watch out for the false promises
Myth No. 1: Debt consolidation
that many debt consolidation loans are very easy to get.
companies seem to be offering
The Real Score: Many people
these days. If you have looked consolidate their debts because
around for potential companies to they have already missed out on a
consolidate your debt with, you few payments and their credit
would surely have encountered histories have had bad blows.
attractive offers from credit They hold on knowing that they
organizations promising you can easily consolidate and
things like "debt relief within breathe a sigh of relief. What
just a click away!" or "slash makes the situation worse is that
down your interest rates to if you are in a bad credit risk,
zero!" or "cut down your payment many companies will entice you
with easy-to-get loans, which all-in-one solution to credit
actually charge you rates much card problems.
higher than you regularly pay for
The Real Score: Though popular
with your existing debts - as as a debt consolidation move
high as 22%! They usually these days, remember that the
distribute it over a longer term attractive balance transfer card
so you seem to be paying less rates only last you a few months.
each month, but you actually end The danger here actually lies in
up paying more.
your credit report. At some
Myth No. 2: Debt consolidators point, it will start showing up
will take care of everything.
and will look like a bad credit
The Real Score: Debt move. So, if you think that a
consolidation companies usually balance transfer card is for you,
promise to take care of make sure you personally close
negotiating to lower your all your existing credit accounts
interest rates and reduce your or it may look like your creditor
monthly payments. They actually closed it, leading to a worse
do what they promise, but for a credit standing.
fee which you pay for monthly as
well. This amounts to about 10%
Myth No. 3: Low interest align="center">
balance transfer cards are
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About the Author:
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Article Tags: consolidation, credit, debt
