The Problem With Debt Consolidation Loans

Peter's picture

If you are struggling with lots of debt from a variety of credit cards or other consumer loans, combining that debt into one large consolidated loan can help you to get things under control. However, if you aren't careful, you can get yourself into an even worse situation than when you started.

Simplifying Things & Reducing Your Interest Expenses

Consolidating your various sources of high interest debt into one large package at a lower interest rate has several very attractive benefits:

  • You can significantly reduce your total interest expenses on your debt due to the lower interest rate.
  • You can get a complete, and sometimes shocking, view of just how much debt you have.
  • It also allows you to focus on a single goal: to pay off the single debt.

For all these reasons, debt consolidation sounds great, and for a lot of people it is an excellent option. However, you need to be careful or you could end up in trouble!

Debt Consolidation Loans: Although debt consolidation loans can be a good way to package your debt for repayment, unless you get your spending under control, it can also lead to a much bigger overall debt. So be careful!Debt Consolidation Loans: Although debt consolidation loans can be a good way to package your debt for repayment, unless you get your spending under control, it can also lead to a much bigger overall debt. So be careful!

Treating The Symptoms

Although most people consider a lot of debt to be a problem, I'm going to tell you that it isn't. Sure a lot of debt is bad for our finances, but debt is often a symptom of a different problem and not a problem in and of itself.

Excessive debt is usually a symptom of poor financial planning, impulsive spending habits and succumbing to societal pressures. Of course not all people who end up in debt are impulsive. Sometimes bad things happen and a lost job or an illness requires a loan to cover short term emergency expenses.

A lot of times though, debt just creeps up on you without you realizing. If that's the case with you, then be careful. A debt consolidation loan might help you to pay off your existing debt, but that debt is just a symptom of a bigger problem. The bigger problem is your spending habits.

Debt invariably comes from spending more money than you earn. Unless you can fix that problem, you'll never be able to get out of debt.Let's say you take out a debt consolidation loan to pay off all your credit cards and other consumer loans. Great. Then let's say you proceed to find yourself tight for cash due to your new debt consolidation repayment requirements. All of a sudden, that paid off credit card starts looking pretty tempting.

If you go back to using your credit cards or other types of consumer loans to cover routine expenses, you'll be getting yourself into a hole that will be almost impossible to get back out of again. Not only will you have a big debt consolidation loan, you'll also have those same old credit cards to worry about again.

Treat The Cause

You need to get your spending habits in line with your income. Period. You need to stop thinking of credit cards or payment plans as viable options for buying things before you have the money to pay for them. If you can overcome that problem, then you might be a candidate for a debt consolidation loan.

Just remember, a debt consolidation loan is not a miracle cure. At the end of the day, you still need to get your cash flow under control. Otherwise you're just treating the symptom when you should be treating the cause.

Disclaimer

If you enjoyed this post you may want to consider subscribing to Plan Your Escape via Email or via RSS feed.



Comments

Since the admin of this site

Since the admin of this site is working, no uncertainty very shortly it
will be well-known, due to its quality contents.

I think that everything

I think that everything published made a lot of sense.

But, what about this? what if you were to write a killer title?
I ain't saying your information isn't good., but suppose
you added a post title that grabbed people's attention? I mean Plan Your Escape is kinda vanilla.
You ought to look at Yahoo's home page and note how they create post headlines to get people to open the links.
You might try adding a video or a picture or two to grab people interested about everything've written.
Just my opinion, it could make your posts a little bit more interesting.

Inconvenientes de

Inconvenientes de estabilidad, problemas de programación,
permisos excesivos que te controlabn las llamadas y ralentizan el dispositivo… Catastrófico.

If you are going for best

If you are going for best contents like myself, just pay a visit
this website every day because it gives
featur contents, thanks

Hi there, of course this

Hi there, of course this post is in fact good annd I have learned lot of
things from it on the topic of blogging. thanks.

This is really interesting,

This is really interesting, You're a very skillked blogger.

I've joined your rss feed andd look orward to inn the hunt for extra of your excellent post.
Also, I've shared your sige in myy social networks

Thanks for sharing your

Thanks for sharing your thoughts. I really appreciate your efforts and I am waiting for your next write ups thank you
once again.

my weblog askcashloans (Raphael)

For newest news you have to

For newest news you have to pay a visit internet and on internet I
found this website as a most excellent web
page for hottest updates.

Then send the postcard to

Then send the postcard to all of the addresses in your area, and
try to draw customers in. When job offers do come and I'll admit, some companies may fear hiring
you because they fear a former owner being an employee, negotiate the best salary you can along with the best benefits you can for you
and your family. For clients, you can target neighborhoods, communities or even companies.

Howdy I am so happy I found

Howdy I am so happy I found your weblog, I really found you by error, while I was researching
on Digg for something else, Anyways I am here now and would just like to say thank you for a tremendous post
and a all round exciting blog (I also love the theme/design), I don't have time to browse it all at
the minute but I have saved it and also added in your RSS feeds, so when I have time I will be back to read
a lot more, Please do keep up the great job.

If you're educated (or

If you're educated (or seeking an education) you will probably
find a ton of opportunity in a small town. You can know
all the ins and outs of business and can run a restaurant without fail; but
would you know the first thing about installing the kitchen grills.
Clients do not look no matter whether you've a small or big budgeted communication service.

Banner ads typically include

Banner ads typically include graphics and text which entice Internet users to click on the
advertisement. If, on the other hand, you are not successful in paying your loans back,
you are going to develop "bad credit. Clients do not look no matter whether you've a small or big budgeted communication service.

Get out of desbt today.

Get out of desbt today. Bankruptcy is a dirty scary word.
But once you learn the inss and outs of bankruptcy it iss not
so scary anymore. In fact, you may conclude it is your best
chance at starting a new future.

Then send the postcard to

Then send the postcard to all of the addresses in your area, and try to draw customers in. Make
the process pain-free with debt collection software for a small business that automates
this tedious process and adds to your company's bottom line.

Clients do not look no matter whether you've a small or big budgeted communication service.

Then send the postcard to

Then send the postcard to all of the addresses in your area,
and try to draw customers in. A lot of people have small business
ideas that they often fail to put into practice either because they
lack the money to make an investment or because the fear to lose
everything. Selling the same things, to the same market, in the same
way.

I ask due to the fact that

I ask due to the fact that it is ended up being rather apparent
that in calling us again and again, and also in disparaging also the nicest people, the
voice at Cardholder Solutions Press # is not curious about our data,
which we will certainly never ever surrender, yet only in harassing us.

The following are the

The following are the benefits that you have to be aware of the most.
Make the process pain-free with debt collection software for a small business
that automates this tedious process and adds to your company's bottom line.
Always choose a new account, and look for a
specialized bank whenever possible.

There are a large array of

There are a large array of choices available which range access
provider and so it is not possible to supply universal on-fits-all guidance.

If you're educated (or

If you're educated (or seeking an education) you will probably find a ton of opportunity
in a small town. A lot of people have small business ideas that they often fail to put into practice either because they
lack the money to make an investment or because the fear to lose
everything. Before you do this, examine the publication online to ensure that its website
is user friendly.

If you're educated (or

If you're educated (or seeking an education) you will probably find a ton of opportunity
in a small town. As with everything else, it is only the mindset of the entrepreneur that dictates the success and failure
of a company. Typically, this works well if we are involved in a
solid networking and we reciprocate, by referring clients to those other businesses.

Then send the postcard to

Then send the postcard to all of the addresses in your area, and
try to draw customers in. Further, amount of loan must be need-based,
subject to ceiling of Rs 25,000 per borrower for purchase of
machinery or equipment etc, and meeting working capital requirement of one operating cycle.
Typically, this works well if we are involved in a solid networking
and we reciprocate, by referring clients to those other businesses.

The following are the

The following are the benefits that you have to be aware of the most.
When job offers do come and I'll admit, some companies may fear hiring you because they fear a former owner being an employee, negotiate the best salary you
can along with the best benefits you can for you and your family.
Selling the same things, to the same market,
in the same way.

Wow, that's seems a whole

Wow, that's seems a whole lot worse compared to merely wrecking all-time
loow of the oven. Thanks for the warning Gay fromm
best oven cleaning peterborough

The following are the

The following are the benefits that you have to be aware of the most.
Platforms: Android, Blackberry, i - Phone, i - Pad, Windows Phone.

What you give away doesn’t have to be costly,
but it must be valuable.

If you're educated (or

If you're educated (or seeking an education) you will probably find a ton of
opportunity in a small town. Make the process pain-free
with debt collection software for a small business that automates this tedious process and adds
to your company's bottom line. Always choose a new account, and look for a specialized bank
whenever possible.

If you're educated (or

If you're educated (or seeking an education) you will probably find a
ton of opportunity in a small town. If, on the other hand, you are not successful in paying your loans back,
you are going to develop "bad credit. Two: Increase in income - When you are able to increase your traffic to the business, you will easily be able to also increase your income.

Banner ads typically include

Banner ads typically include graphics and text which entice Internet users to click
on the advertisement. A lot of people have small business ideas that they often fail to put
into practice either because they lack the money to make an investment or because
the fear to lose everything. Typically, this works well if we are involved in a solid networking and we reciprocate, by referring
clients to those other businesses.

Banner ads typically include

Banner ads typically include graphics and text which entice Internet users to click on the advertisement.
Platforms: Android, Blackberry, i - Phone, i - Pad, Windows Phone.
Two: Increase in income - When you are able to increase your
traffic to the business, you will easily be able to also
increase your income.

Post new comment

The content of this field is kept private and will not be shown publicly.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
  • HTML tags will be transformed to conform to HTML standards.

More information about formatting options