Credit Card and Car Loan Debt Consolidation

Why is debt consolidation services becoming so popular?

The main reason is our inability to live within our means. People generally get a rush when spending money. It has been said that it is similar to a high that drug users get when they take substances. Now just as there are consequences to drug use there are obviously problems associated with overspending especially when it comes to consumer debt.

What is a normal person to do when they find themselves over their head, drowning in debt?

When you find yourself in this situation there is only a few things you can do.

1. Win the lottery- now we all know this isn't going to happen, but hey a guy can dream right?
2. File for bankruptcy- This is a very serious matter because once you file for bankruptcy you will have that on your credit record for at least 7 years. This would cause you to pay insanely high interest rates when you establish any new lines of credit. Over the years this option would cost you a ton of money!
3. Use a debt consolidation service couple with a debt management solution.

So what exactly is a debt consolidation service?

It is a two part equation. There is the actual debt consolidation and then a management solution (or managing of the consolidation). The way a debt consolidation works is all your debt would be lumped together . Then the debt consolidation company would enter into negotiations to get rid of late fees, lower interest rates and get you the best possible terms.

Once this is done the Debt consolidation company would work on a payment plan so that you can afford to pay these debts off in a timely fashion. This also impacts a person by improving their credit score which we all know is the key to being able to have low interest rates and obtain lines of credit.

Both the debt consolidation service and the management are intertwined services and do not serve as stand- alone products. This is very important because without the management aspect it is proven that most people fall back into their old ways sinking farther into the black abyss of debt.