One of the most important things to remember is that you can't borrow your way out of debt. Almost 80% of all individuals, who have managed to bring their current accounts to a zero balance, using a debt consolidation loan, end up owing the second lender even more money because of interest rates. Many times these individuals owe up to 50% more than their original debt. That is definitely not helping the problem.
Unfortunately, that isn't the worst of it. Countless people take out debt consolidation loans to pay off credit cards. They make the mistake of keeping these credit accounts open. If their spending habits don't change. . . and many times they don't. . . they end up maxing out these cards, a second time.
When this happens they have come full circle, with the added payment of the debt consolidation loan. It honestly can't get much worse than that!
The individuals who find the most success with debt consolidation loans are those who have some type of plan in place, before actually taking out the loan. More importantly, they follow the plan to the letter.
Typically, these same individuals have worked with and followed the guidance of a qualified debt settlement company that is IAPDA certified and has an outstanding record with the Better Business Bureau.
The company handles all negotiations with creditors, before the debt consolidation loan is finalized. This ensures that the client always comes out on top and pays off their debt in the shortest time possible. . . without incurring added debt, in the process.
Debt consolidation is not a cure, just as it isn't appropriate for all situations. But, with the proper support of a certified settlement company, it can be a successful endeavor. One which assists you in paying off and eliminating your debt.
Tom Bates, CDA
Absolute Debt Solutions, Inc
Absolute Credit Repair, Inc.