Debt Consolidation is a very popular and much touted term. Whether or not debt consolidation truly eases credit woes is a much debated topic. While debt consolidation is rigorously promoted as creation as a single loan that is easier to handle and works towards elimination of debt completely often the reverse happens and according to a senior official in a credit corporation, “Debt consolidation is often a symptomatic relief and not the cure. ” One needs to ensure that what is being offered as debt consolidation by several financial firms is not a mirage but a reality.
Debt consolidation can take the form of a debt consolidation loan, a zero-percent credit card loan, or a home equity loan among other options.
Studies indicate that over 70% of debtors in the US who opt for debt consolidation land up in debt once again and that to within two years.
Consider opting for credit counseling. Very often debt management is a more feasible option as in the long term you will pay less. For example if you have a debt of USD20000 you may pay USD 8000 as interest and be debt free in say 5 years. While if you take a 15 year home equity loan at 10% interest the interest on USD 20000 would amount to USD 19,000 approximately. So, getting professional help to manage your debt may save you considerable sums of money. A credit counselor will teach you essentials of money management and ensure that you don’t get into debt again.
Barry Allen is a freelance writer for http://www.1888debtconsolidation.com , the premier website for free Debt Consolidation Services for loans, debt management plans, debt counselors, advice, loan payments and many more. His article profile can be found at the premier Home Loans site http://www.1844homeloans.com