Are you having a hard time keeping current with all of your credit cards? Have the credit card companies raised your interest rates? With high interest rates, minimum monthly payments just prolong the agony. The odds are stacked against you as the credit card companies want you to continue making minimum payments for years ahead. Something must change, and you are considering debt consolidation because of the allure of one easy payment and the promise of lower interest rates.
No one likes to be in debt but the truth is that debt consolidation companies are not your only option and may end up hurting you more than you think. They do not offer massive debt relief as advertised. In fact, you end up paying more and staying in debt longer because of so-called consolidation.
Before you agree to consolidate your debt, think about the following points:
- Debt consolidation is nothing more than a refinanced loan with extended repayment terms.
- Extended repayment terms mean you will be in debt longer.
- A lower interest rate is not a guarantee when you consolidate.
- Debt consolidation is not debt elimination, debt relief, or debt settlement.