Free Debt Consolidation - Why Double Your Debt When Debt Settlement Could Cut It In Half

Let's look at this through clear vision, not those stressed out eyes that the loan officer has given you. Debt consolidation is simply moving several accounts over to one account. You still owe the same amount as you started with. Your interest rate may be a little lower and hey, maybe you get to skip a month or two with your new fancy loan "YOU BOUGHT". After looking at this clearly, if you used your homes equity to get this loan, you paid closing fees, title, escrow, points front and maybe back, costing you thousands to close your loan. Not including, the pre-funding cost. Maybe that was rolled into the loan. Great, you paid nothing up front. That's nice, but now you have to pay on it for 20-30 years. Looking at the comfort, a lower payment will give us is not always clear vision. Looking at the entire picture clearly you are handing over your financial freedom for life.

The American Dream is to own a home not owe for a home. Wrapping your homes equity into a consolidation loan to pay for unsecured debt is financial foolishness. Your home is in most cases, the largest most secured investment you may ever make.

When considering this debt consolidation loan, understand you may have just paid off all your loans and credit cards to a zero balance. Now, how many of you would now go close "all " those credit cards. Fact is, less than 10% will close them. In fact, more than 75% of debt consolidation consumers will have all those cards maxed out again in less than 2 years. You have just doubled your debt, and set yourself up for bankruptcy.

Free Debt Consolidation is a great pitch, It is Free right? Wrong. No up front cost? Great? No, the fees that were put into the loan are now drawing interest for the entire term of the loan. If you used your home as equity your going to pay on this for 20-30 years. Fees of 5,000.00 just went to around 25,000.00. Not good banking and does not help your big picture.

We only recommend Debt Consolidation if your in a position, before you start the loan process to have every account you owe worked out in Debt Settlement settlement to reduce what you have to pay to bring full resolve. Each unsecured account being paid should be closed with no further obligation. These settlements should be around 40% of what you owe. It is unlikely you will be able to get your creditors anywhere around this number without an IAPDA Certified Debt Arbitrator. You can try, but after you have become even more upset after talking to the bank and are drug around by your loan officer, making you chase records, and going nights without sleep you will hopefully see the non-sense in a debt consolidation loan. Doubling your debt just does not make sense. And even worse, the 20-30 year term makes you pay back even more than double.

You might even consider yourself a thrifty shopper. Ok, let's look at that. A shirt you paid $10.00 for at Walmart, now cost you $25.00, A night out and dinner may have cost you100.00, well in your new loan that all now cost you about $250.00. Pretty Clear, Life does not take Visa- Visa Takes Life. I have never gone into a store, handed the clerk cash, to be told, sorry we don't take cash.