Is a debt consolidation loan right for me? If you’re reading this article then that is probably the question you are looking to answer.
In some cases a debt consolidation loan will only lead to more debt, yet in others it is a Godsend, a blessing and just the answer you are looking for to get some breathing room. In either case we don’t recommend haste but a careful evaluation of your particular problem. Our goal is not to increase your debt but to help you solve your debt problem. Let’s look at the disadvantages and the advantages.
Advantages Of A Debt Consolidation Loan
· You have only one payment rather than 15, which makes it a lot easier to budget. Instead of a balancing act like you are doing now, you only have one payment that is taken directly out of your account on a set day each month.
· Reduced interest rates: If the bulk of your problems are being caused by credit card debt and you know that the interest rate is 20+% it’s not hard to figure how much you will save. The most common debt consolidation loan is a home equity loan – and the interest rate will be much lower than you are currently paying. Plus it won’t fluctuate up or down like a credit card interest rate does.
· You will have a much lower monthly payment: With the lower interest rate you can expect much lower monthly payments. The average person in the USA has 11 different creditors to pay every month. Which usually means one creditor gets paid this month, another one gets paid next month, and the juggling goes on and on and on . . .
· Interest is tax deductible on a home equity debt consolidation loan: Interest you pay on a credit card is money down the drain. Interest on a home mortgage is tax deductible. Another savings.
Disadvantages Of A Debt Consolidation Loan
· Takes a little longer to pay off debt: The average mortgage is approximately 30 years and a home equity loan debt consolidation loan is usually for 15 years. If you’re able to pay the debt off faster by doubling up on payments this might be wiser for you as you can probably pay it off in 1 to 2 years. But if it’s snowballing then a debt consolidation loan will keep your credit score from falling further while giving you a set payment with an actual “end date” to the debt.
· It will take discipline to keep from going back into debt: However we will show you how to avoid that trap in some of our other articles.
· Debt consolidation loans are secured loans: This means if you don’t become disciplined in your budgeting you are putting your home at risk. However we offer help with budgeting to avoid this.
For help with budgeting check out our other articles or print out our simple budget worksheet and keep yourself in check each month with paying down those bills! You never know how much you are really spending until you look at it in black & white on the page.
We offer a special selected group of consolidation lenders, each one specializing in this type of loan. The average bank only offers help if you have sterling credit while ours understand you have special needs and are there to help.
Still not sure whether a debt consolidation loan is right for you? You will always wonder unless you follow the instructions here and go to our website and check out our lenders. Every time you write out one of those checks to your credit card companies and look realistically at how far behind you are you will never catch up. A debt consolidation loan just could be the answers to all your prayers! Check it out! Check our lenders. The address is in the resource box.

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