A Debt Consolidation Program To Relieve DebtPosted by Nick Niesen on October 29th, 2010 Debt consolidation programs are good if you are paying on several different loans. They can make your life easier by giving you one monthly payment. Your monthly debt decreases if the program you use for debt consolidation stretches your payments over a long period of time. Paying less every month will free up some extra cash. Debt Consolidation Programs Reminders One problem with a debt consolidation program is you will feel like you owe less. Your credit cards will again have large amounts of available credit for you to use. Beware of digging yourself into a deeper hole by continuing to add to these balances. With a debt consolidation loan you may end up paying more in total interest. By stretching your payments over a longer period of time, your total interest cost could possibly be higher. Of course, it may help you more easily manage your current cash flow. There are risks by using debt consolidation programs. If you?re using a home equity loan or line of credit to consolidate your debt, the consequences of falling behind on the payments can be disastrous. You could lose your home if it is pledged as collateral against your loan. When searching for a debt management company, look for experience, how professional the company is, their assistance and budgeting services. Try to find a local company you can communicate with without having to drive for hours to talk to your counselor. The debt management industry is unregulated. Scam artist are out there waiting to charge your outrageous fees without informing you of the best solution for your situation. Try to find out some of their customers and talk to them. Get recommendations and research online if possible. Also the debt management company your choose should be a be advise you on how to deal with angry creditors, whether bankruptcy is an option or how to consolidate debt or simply reorganize your bill payment schedule. Remember, your main goal is to work towards a better understanding of your financial debts. You will want to learn how to take care of your own debts, assets, and financial goals through your counselor?s advice. The debt management and debt consolidation is only stepping stone towards your own financial self-reliance. Like it? Share it!More by this author |