Debt Consolidation

Debt Consolidation—to do or not to do?

That is the question and the answer depends on the person doing the asking. Ironically, many have gone the route of debt consolidation only to find themselves in twice as much debt. How does this happen? Perhaps a better question is how did the problem of too much debt occur in the first place? For some debt problems happened as a result of mishap through no fault of their own such as illness, injury, unexpected trips or moves or other burdens, loss of job through company downsizing, etc. But for others, the problem of debt is self inflicted—it is usually caused by bad and irresponsible habits of living beyond ones means. Good money management is the ability to “own” life as one lives it as opposed to the person who is spending their future now on the false concept there will be plenty of money then. To find out if debt consolidation is the right choice for you requires an honest look at yourself. Sincere introspection into your personal strengths or weaknesses when it comes to managing money will determine if you need a bandage to carry you back to financial health or a complete transplant of lifestyle. Don’t automatically jump on the bandwagon of debt consolidation because it looks good—remember, “Looks can be deceiving.”

Considerations to look for

Like bankruptcy there are going to be costs involved that will affect you future. Debt consolidation is routinely accomplished through a second mortgage but borrowers beware:

• The advantages of lower interest rates that are tax deductible may not be enough to offset the loan fees that will be added to your indebtedness and having to put up your house as collateral. If for some reason you can’t pay you may end up losing your home.
• Loan scams—does the expression “beware of wolves in sheep’s clothing” mean anything? In the world of finance it means you need to know how to determine who is a legitimate debt consolidation company and who is just out to con you out of everything you got. Check the Federal Trade Commission’s [www.ftc.gov] search engine for releases on loan scam abuses.
• Zero balance credit cards—if your credit cards are the source of your financial troubles you will need to take a hard look at your lifestyle. Remember, “old habits die hard.” The typical credit card lifestyle is defined as living beyond ones means by 10% or more. You will need to not only cut up your cards but also call the card issuing companies and cancel the accounts. Carrying a zero balance on a card you keep with you is a lot like trying to swim in shark infested waters—it’s dangerous. Unless you’re extremely disciplined you will not be able to resist the temptation to charge and it will only take a few times before your max-ed out all over again—end result: twice as much debt.

New lifestyle

Debt consolidation is a choice that only works in a few situations. There is so much to consider when it involves personal money management that it is advisable to first seek professional help. Gene Jolley, creator of the Rapid Debt Reducer software, has made it his mission to the reeducation of the American family concerning the proper management of money. Jolley conducts seminars where he has helped scores of individuals, couples, and families to understand money, manage and get out of debt, and go on to build prosperous futures.

Rapid Debt Reducer Debt Elimination Software.
Debt Elimination Software. The answer is The Rapid Debt ReducerTM, a computer program which gives you the tools you need to get completely out of debt in as little as 5 to 10 years - including paying off your mortgage! Comes with free budgeting software! As DEBT goes down NETWORTH goes up!
http://www.rapiddebtreducer.com

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