Debt Consolidation
April 5th, 2006 by jhampton
You’ve heard the commercials and now you’re interested in getting a debt consolidation loan to help you get out from under the large interest and the collector calls.
What you don’t know is that most consolidation loans are usually as bad or worse than the debt itself.
The trouble with debt consolidation loans is twofold:
- This kind of borrowing typically does nothing to solve the problem that got the consumer in trouble in the first place: overspending.
- The loans can be far more expensive than the debt they’re designed to pay off, full of hidden fees, expensive insurance and other profit-boosters for lenders.
With the credit insurance, loan fees, administrative fees and the like. Your payment may be lower but it will most likely be longer. Get advice before using this type of loan service.
Relevant Tags: build wealth, debt consolidation, eliminate debt, prosper learningPosted on Wednesday, April 5th, 2006 at 3:15 pm In Debt Elimination