The Misfortune of
Debt Consolodation

Debt consolodation as a means to escape the agony of avoiding bill collectors may not be a healthy solution long term. The embarrassing feeling that comes with not being able to pay those monthly bills can drain the life out of anyone.

Having more debt than one's ability to repay is stressful, true. Initially you might think you would benefit from consolidating debts into one easy repayment but you must remember debt consolodation has little effect on your short term credit rating and little effect on changing your overall financial situation. Debt consolidation is like putting a band-aid on a gaping wound.

In-fact debt consolodation is a dangerous remedy since this option doesn't correct the true problems - your ability to exercise financial discipline.

Debt consolodation has become attractive because oftentimes people are lured by the idea of having one payment and a lower interest rate. When the consumer understands how a lower payment can be gained through debt consolodation it would be crystal clear this is not the best direction to take. Lower payments typically exist because time is added to the terms of repayment.

Stretch out the time, increase the number of payments and presto you have achieved a smaller monthly payment. So you see it's staying in debt for a longer period of time that gets you a lower payment. Most people fail to realize the game of lending is about longevity the longer the term of any loan the more money lenders of any kind make.

Lenders in the debt consolidation business are there to make money - nothing more - nothing less.

Don't be fooled by promotions touting the benefits of debt consolidation:

• Lower monthly payments allows more discretionary spending
• The simplicity of one bill to track
• Lower interest rates with easy payment terms
• We pay your creditors for you

Being buried in a mountain of debt clouds the best reasoning, logic and judgment. Make note that a debt consolodation loan simply transfers the debt from one lender to a new one and you continue to be swamped by debt - simply transferring the issue is not a resolution to the problem. Debt consolodation with a longer repayment period truly lowers your monthly payments but increases the total amount you repay over time.

As you can see debt consolodation is nothing more than a shell game - the ole' bait and switch where consumers believe they have done something to improve their debt situation when in truth the debt remains and in-fact continues to grow.

"Discretionary Spending" is one of the reasons why most people find themselves in these situations in the first place. It's poor financial discipline that is the common root cause of out of control debt situations and it will be the person who corrects the root cause who realizes long term results.

The best way to get out of a hole is to 'quit' digging.

Maybe it bothers you. Maybe it worries you. Or maybe you just consider it an unavoidable part of modern-day living. After all, just about everybody these days has some kind of debt, right? Well, here's the cold, hard truth about debt: If you have it, then someone else owns your life.

The best way to change anything especially getting out of debt is to to change your thoughts, actions and ultimately your habits. Making a commitment to eradicate debt one day at a time is the first order of business. Practice the habit of living beneath your means and not overextending yourself with credit and taking on more debt. During this emotional situation most people without any clear direction resort to debt consolodation as the way out - and just like the misspelling of the word - this is clearly wrong - it is the wrong solution to resolve problems with debt.

If you don't get help here please get help from somewhere and whether you consolodate or consolidate either one is not good for your financial health and well being.

Just say NO to debt consolidation!

Remember it's a well known fact that for those who turn to debt consolidation as a remedy it's estimated that approximately 80% of the time when a consumer consolidates debt, the debt grows back because the cause had not been attended to. I recommend the following program to help you get back on track: