Debtsolutions.com Answers Questions on Debt Consolidation

Debtsolutions.com discusses the ins and outs of debt consolidation. End Quote

Debt consolidation is when a consumer takes out one loan to pay off other loans (credit cards, car payments, etc.), that have high interest rates.

Chicago, IL (1888PressRelease) March 27, 2009 - Reports show consumers have been falling further and further behind in bills and payments, according to TransUnion (one of the three credit reporting agencies in the U.S.). Loans, credit and charge cards become a lifeline consumers think have “helped” them when they weren’t sure when the next paycheck was coming in. However, what felt like an immediate lifeline is proving to be, in many cases, to be financial quicksand. Consumers across America are in more debt than they can handle.

It may have seemed easy to get into debt, but it feels impossible to get out. In such cases, debt consolidation may be the order of the day, according to a recent article released on Debtsolutions.com. If you find yourself in these hard times sitting under a mountain of debt and no clue on how you’ll ever pay it off, debt consolidation may be a tool you need to get out from under the mountain.

The Debtsolutions.com article answers many of the most frequently asked questions when it comes to debt consolidation: what is it, who needs it, why use it, and when to know debt consolidation is the right choice for the consumer, to name a few.

Debt consolidation is when a consumer takes out one loan to pay off other loans (credit cards, car payments, etc.), that have high interest rates. The interest rate on the subsequent loan is lower than the combined total of the previous loans’ interest rates.
So why should consumers consider debt consolidation and how exactly will they benefit?

“Debt consolidation will help you pay off your debts sooner. It will also make the payment of your debts more manageable and less confusing because you will have to plan for only one bill every month, rather than several,” according to the Debtsolutions.com article, ‘The ABCs of Debt Consolidation.’ “More importantly, it will keep more money in your pocket every month, instead of in the hands of creditors.”

The Debtsolutions.com article suggests the consumer sit down and review their budget before deciding to take the debt consolidation route.

“If it seems as though too much of your paycheck is disappearing into the hands of your creditors, seek the advice of a credit counselor.”

Consider the following: More than 1 million jobs have already been cut since the beginning of 2009 alone. Throw that in with the other effects of the current recession—including record high unemployment rates across the nation, a slumped housing market, insecure consumers—it’s not hard for consumers to find themselves in financial desperation. Debtsolutions.com discusses why contacting a credit counselor or professional financial advisor can help make getting out of debt just as easy as it was to get into.

Staff contribution: Meha Ahmad
http://www.debtsolutions.com/debt/consolidation-abc.html

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