Debt Consolidation Loan (3 Secrets Revealed!)

get a debt consolidation loan
This ad is of National Debt Relief in New York

 

That pretty ad that says “get a low-interest loan to pay off your debt today”, is looking very enticing and clickable, but what it doesn’t show you is the truth about everything that you need to know. For example, if you do debt consolidation with a balance transfer card, these cards carry a 3%-5% upfront fee! If you have bad credit, debt consolidation will cost you more than if you were to just keep paying minimum payments on your own and much more than if you were to use a debt relief program. Today, we will show you the truth about debt consolidation and the different ways available to consolidate your bills. Getting a low-interest loan can be extremely beneficial, but not if there are pre-penalty payoff fees involved and not if the interest rate is higher than the average interest rate that you are currently paying.

Read the debt consolidation loan contract very carefully, and verify all of the fees and interest associated with the loan. Debt consolidation usually comes with an up-front fee, pre-penalty fees (meaning, you get charged extra if you pay off the debt early) and high interest. Use a debt calculator tool, and figure out how much you will end up paying if you continue doing what you are currently doing on your own, versus the cost of paying off the debt consolidation loan.

  1. Balance transfer card to consolidate debt – these balance transfer cards can be a great way to consolidate your debt but only if you can manage to get the balance paid off within the introduction time period. See, balance transfer cards offer you that “low-interest rate” only for a certain number of months. Usually, you have 12-months to pay off the balance transfer card at 0% interest rate, and then the rate goes up to 19% or higher. On top of that, all balance transfer cards come with an upfront fee that averages at around 3%-5% of whatever the total is that you are transferring to it.
  2. A home equity line of credit – another great way to clear your high interest. You can transfer high-interest credit cards to a home equity line of credit and then enjoy a 4%-5% interest rate, versus the 25% interest rate you are currently paying. But the truth about this type of debt

I did not have to file for bankruptcy!

Let me tell you of a real story about myself, and what had actually happened to me last year. I was on the brink of filing for bankruptcy until I chanced upon methods on how to relieve myself of credit card debt.

I was accumulating so much debt over time, and it was mainly because I just had a lot to spend, more than I was earning. I had to pay for so many things, I just got a new place, and I wanted to furnish it quickly with all the appliances and furniture that I thought I needed.

But, the purchases were too much too fast, that I was increasing my credit card debt so quickly over a very short period of time. I was getting so worried, because I thought that I would have to file for bankruptcy. I was already selling my things left and right, to get some money to pay for my debt, but the balance of my credit card was not decreasing, I was basically paying for the interest only. Damn, that was a hard time.

Next thing I knew, I didn’t have anything else in my home, aside from my bed, and I still owed the bank so much money. My sister saw how depressed I was getting, and while she couldn’t help me financially, she introduced me to her friend who works for a credit card debt relief company, who gave me options on how I could deal with my finances, and gave me really bright options that were easier for me to deal with, and so that I would not have to spend more than I was making.

With the new payment scheme, I am now able to still have a very conservative lifestyle, and pay my debts to the company on time, and on schedule. This helped me a lot, and I now know how to spend more wisely.…