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Consolidate Debt: Consolidating into a Full-Blown Nightmare
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Major Advantages of Debt Settlement Like Paying Less Than 50%
Debt is one of the leading causes of stress in today's society. Everyone has a credit card or loan and almost all of these lines of credit holds an outrageous APR. For every hundred dollars that is spent over two hundred dollars must be paid. This increase is due to the interest paid on the money that is loaned for that purchase. People are overspending or in most cases using credit cards and lines of credit to live on. So what happens when the line of credit joins the stacks of bills and now there is no money to pay? As a consumer the choices are limited.
The first thought for many people is to turn to credit counseling and debt consolidation. The consumer is informed that for a lower monthly payment their bills will be handled and everything will be fine. This new monthly payment will bring your accounts to a current status and stop the bill collectors. They get your approval and first payment and then begin the process. They do not inform you that at the end of your consolidation your credit score or FICO has not improved. Your credit is still poor. You may or may not be able to get loans for things such as a house or car. In some cases the FICO score even drops from the mere consolidation arrangements that have been made. With consolidation you can only do it once. If you can't make the payments you are in worse shape than you were when this started. Your FICO score drops, collection agencies begin calling, interest rates are put back into effect, and so on. You can stop the nightmare of bad credit before it even starts, and you do so with the knowledge that you are paying for the better outcome--not the easier one.
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