Check This Out!
View my latest issue of
SolveYourProblem.com
Weekly Inbox Magazine
Get up to $1,000 or more deposited
in your account in as little as an hour!

Here are the top 2 resources for fast, safe & secure lenders.
    
Click here for Capstone Loans.
   
Click here for Payday Pays (eHolidayCash)
 

SolveYourProblem.com Article Series: Debt Relief & Debt Consolidation
I Want To Get Rid Of My Debt...NOW!

    

When is Debt Consolidation Not The Right Option?
   

You may have started your decline into debt slowly but you suddenly realize that unless you pull the emergency brake, you may actually be on the road bankruptcy. As it is, you are precariously teetering on the edge of having to use one credit account to pay another one. Maybe you did not notice how it happened at first, but the reality is still the same, you need to change something in your debt profile.

Consolidating debt is usually a first thought that cross many debtors’ minds. After all, a consolidated debt may have substantially lower interest rates and therefore a much lower payment than all your various creditors are asking you to pay on a monthly basis. While at face value this might look like a good solution, there are some times when debt consolidation is not the right thing to do.

For example, if you got into debt in the first place because you either lacked self-discipline or simply are living above your means on a day-to-day basis, the odds are pretty good that you will once again find yourself in that same predicament when your creditors are paid off. If you do not bring in enough money to support your lifestyle, but if you rely on credit cards to make monthly payments to utilities, to purchase food and other necessities, you are only holding back potential financial disaster on a very temporary basis. As a matter of fact, the odds are good that you will have run up your credit cards once again before you are even halfway done paying for your consolidation loan. Ask yourself if you are willing – and able – to cut up your credit cards and still afford the necessities. If the answer is no, then a consolidation loan will not help you in the long run.

Another disadvantage of a consolidation loan is the fact that you may actually be paying more money in the long run. Sure, the payments are much lower than all your bills combined were beforehand, and theoretically you could pay down the loan faster if you had to, yet this does not always happen. As a matter of fact, you might need the extra funds just to stay afloat. So if you do the math and find that you could have paid off the original credit card in about three years, but your consolidation loan runs for a period of five years, you may actually be increasing the amount of money paid altogether, since there is undoubtedly interest being added to the principal.

If you are thinking of securing a consolidation loan with an asset, such as taking out a home equity loan on your house, you will need to remember that failure to pay off the loan will not only make it hard to sell the property, but may actually cause your house to be sold from under you. A forced sale, or foreclosure, is an option the lender has to receive the funds they lent if you are unable or unwilling to pay. Before using your primary residence as security to pay off unsecured debt, make sure you are able to pay it back in the long term. If you are uncertain of your ability to pay, or if your professional outlook is a bit shaky at the moment because of a merger or buy-out, you might want to think twice before putting your home on the line.

It is no great mystery that outstanding debts will rob you of your sleep and will cause strive and unhappiness in your home life. Rather than embarking on adding even more debt, even if it is in the form of a consolidation loan, it might be wise if you spoke to financial planner, or if you simply logged onto one of the many Internet sites that offer free budgeting software. Once you know where you are at in financial terms, you will be much more comfortable at making an educated decision about which steps to take to regain your financial freedom. If, on the other hand, you are simply taking the first step you can think of, you might not only put yourself into even more jeopardy, but quite possibly pay out more money than you really had to in the first place!

Click here if you are drowning in credit card debt, facing foreclosure, being harassed my debt collectors or simply feel like a victim of this economic crisis. It's my SolveYourProblem recommendation.

# # # # #

by : 2007

> Home > Debt Free Articles: Main Page


I'm young yet old-fashioned. Hip but eccentric. And... I've gone retro.  Social media has gone completely berzerk, so I've started over and am keeping it simple. If you have a problem to solve, email me personally. I love people. It's in my nature to help.
   
If you enjoyed your visit, pass it on!  - Jeff @ SolveYourProblem.com
   

Back Pain: The 14 Easiest Lifestyle Changes To Prevent Back Pain
Bad Habits: How To Break Any Bad Habit In 30 Days
Careers / Jobs: 13 Ways To Successfully Job Hunt During the Holidays
Depression: 5 Ways To Stop Seasonal Depression (Seasonal Affective Disorder)
Depression: 4 Easy Ways To Strengthen Your Emotional Wellness
Depression: 3 Reasons and 11 Ways To Overcome Loneliness
Diabetes: The Top 21 Diabetes Facts and Myths For Diabetics
Emotions: 9 Ways To Successfully Avoid An Argument
Emotions: How To Share Your Feelings With Others
Empowerment: How To Turn Big Dreams Into Bigger Realities
Empowerment: The Surprising Power and Benefits of Giving
Empowerment: How To Step Outside Your Comfort Zone
Empowerment: How To Discover The Real Inner Strength Within You
Empowerment: How Overcome Limiting Beliefs and Improve Your Life
Exercise / Fitness: How To Create a Great Exercise Routine You Will Stick To
Goal Setting: Top 7 Ways To Bring Your Dreams and Aspirations To Life
Holidays: 5 Ways To Choose Your New Year's Resolutions
Holidays: The Top 15 Healthiest New Year's Resolutions
Holidays: Top 15 Natural Ways To Keep Your Holiday Energy Level Up
Holidays: 13 Important Life Lessons From Classic Holiday Movies and TV Specials
Mind / Body / Spirit: Go From Busy Body To Zen Stillness
Mind / Body / Spirit: How To Become Self-Aware and Why It Is Important
Motivation: 10 Ways To Motivate Yourself and Improve Your Quality of Life
Parenting / Family: These 5 Traditions Can Bring Your Family Closer Together
Positive Thinking: Top 6 Ways To Be More Optimistic About Your Future
Procrastination: A Short List of Tips To Stop Procrastinating
Self Confidence: 5 Ways Eliminate Self-Doubt and Boost Your Confidence
Self Confidence: How To Find Your Confidence When Life Has You Down
Self Esteem: Try 3 Strategies To Develop Self-Acceptance
Self Esteem: How To Develop Self-Acceptance Of Who You Are
Self Improvement: 6 Ways To Change A Behavior You Don't Like
Self Improvement: Do You Need An Attitude Makeover?
Self Improvement: 11 Reasons Why You Should Learn Something New Each Day
Self Improvement: 5 Ways To Identify Your Potential In Life
Self Improvement: 9 Ways To Rev Up Your Engine and Have a Great Day
Self Improvement: 5 Steps To Strengthen Your Character
Self Improvement: Stop Being A Couch Potato and Start Loving Your Life
Self Improvement: How To Turn Your Dreams Into A Reality
Self Improvement: How To Make Better Decisions
Self Improvement: This Simple 8 Step Process Can Change Your Life
Sleep / Insomnia: 14 Sleep Compatibility Solutions For Couples
Stress: Top 5 Ways To Reduce Holiday Stress
Stress: 13 Steps To Overcome Perfectionism Stress and Relax
Success: 17 Lessons Celebrities Can Teach Us About Success
Weight Loss / Dieting: 14 Ways To Stick To Your Diet During Happy Hour
Weight Loss / Dieting: Top 10 Ways To Reduce Sugar In Your Diet

Get Super Effective,
Brilliantly Simple,
Self Improvement,
Health & Success
Secrets, Advice
& Pearls Of Wisdom
Delivered To Your Inbox

Sign Up Now To Receive
My Complimentary Weekly
SolveYourProblem Inbox Magazine.

View Current Issue.

First Name:
Email:

Fast, Fun & Free.
Get Instant Results!

Are You Happy
As a Clam
OR
Depressed As Dirt?

- - - - - - - - - - - - -

Are You
Relaxed As Rain
OR
Crippled With
Anxiety?

- - - - - - - - - - - - -

How Well Do
You Cope Under
A Steaming
Pile Of Stress?

- - - - - - - - - - - - -

Spectacular
Self Esteem
OR
Self Love
In The Toilet?

- - - - - - - - - - - - -

Are You
Self Empowered
OR
Complete Coward?

- - - - - - - - - - - - -

Are You a Thrill
Seeking Risk-Taker
OR
a Total Scaredy Cat?

- - - - - - - - - - - - -

How Financially
Screwed Am I?

- - - - - - - - - - - - -

[ View All Quizzes ]

Hot New Channels:

Free Stuff!
Learn where to get great
freebies and save money too.

'Hot 10' Channels
For The Past 7 Days:

Resume Writing
(3,972 views)
Motivation
(3,512 views)
Pregnancy
(3,191 views)

Setting Goals
(3,030 views)
Natural Health
(2,884 views)

Exercise/Workouts
(2,847 views)

Back Pain Relief
(2,465 views)

Self Improvement
(2,393 views)

Emergencies / Disasters
(2,987 views)

Self Confidence
(2,107 views)

'Top 10' How-To's
For The Past 7 Days:

Pregnancy Sleeping Tips
(1,229 views)

How To Build
Upper Body Strength

(789 views)

Writing Your Resume
(784 views)

Setting Career Goals
(749 views)

Cover Letter Sample
To Request A Position

(710 views)

Are You Experiencing a
Nervous Breakdown?

(583 views)

29 Motivational Quotes for
Business and Work

(533 views)

Try An Oatmeal
Remedy For Itchy Skin

(499 views)

Top 8 Tips To Improve
Your Personality

(455 views)

Identify What Motivates
Your Children

(426 views)

The Next 5...

HMO vs. PPO
(386 views)

Lower My Cholesterol:
Herbal Homeopathic Remedies

(357 views)

Body Wrapping for
Cellulite Reduction

(319 views)

5 Ways To
Motivate Others

(308 views)

Exercises For
Back Pain : Yoga

(248 views)

© Launch 3, LLC All Rights Reserved