Debt Consolidation: Lose More Than You Think

Posted on September 23, 2013 at 6:54am by

Today it seems the economy has many individuals in hot water over debt; many have turned to a debt consolidation loans as a potential front runner for reducing or relinquishing their debts. Here are some debt consolidation scam “pitfalls” to look out for when considering this option for debt relief:

Debt consolidation is no cure-all for debt relief. For instance, creating a budget with an estimated time frame for debt payoff may provide you with a better idea of how long it will take to pay off debt organically. Many companies who advertise debt consolidation will provide you with a time frame to which your debt will be paid off, but you must consider the interest rate and fees that will be lapped on top of your current debt. In many cases, it may take you a shorter amount of time to pay off the debt on your own as well as for a fraction of the cost when adding debt consolidation loan interest.

Fees, fees, and more fees. Debt consolidation services are sometimes in a position of great profit from your debt relief services. Besides interest, these companies can sometimes add an upfront fee for consultation and debt payment agreement setup, late penalties, and monthly fees for their service. Though some debt consolidation loans are legit, one must take into account they will charge for their services; it is up to you to find out whether these services will benefit you more than they will benefit them.

Beware of the home equity loan. When considering this type of debt consolidation, it is extremely important to speak with your lender as well as your lawyer about the possible issues that may arise with this type of loan. For instance, the interest and estimated time of payoff. If one approaches a home equity loan without full knowledge of possible default penalties, you can easily lose your home.

Debt payment help is out there but bankruptcy can be a better option. In most cases you will be able to keep your home as well as your personal property. The Sader Law Firm has your best interests in mind. They can provide you with the information you need to proceed with bankruptcy as a solid solution for overwhelming debt. B We invite you to contact usB for more information on how to get peace of mind with comprehensive bankruptcy solutions.

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