Common Debt Consolidation Myths
Debt consolidation is considered a safe alternative to bankruptcy. But there are lots of misconceptions about consolidated debt. Debt management experts try to find the right answers.
Debt consolidation
With the slow economy and low incomes, credit cards become the obvious choice to meet the necessities of life. And debt consolidation is the best choice to meet sky rocketing credit card debt problems. But often we come across myths from various sources. Due to a lack of awareness, we can’t distinguish facts from rumors. Debt management experts shed some light on some common myths associated with debt consolidation, which are discussed below.
Consolidated loans are easily available
It’s a popular assumption that debt consolidation is very easy to come by. But from the debt management organization’s perspective, it’s a myth. Actually it takes a lot of paper work and time to get consolidated loans. Plus, you need a good credit score and should have unsecured loans to qualify for debt consolidation.
Consolidating credit card debt to a no-interest card is a good option
You might have come across this suggestion of consolidating credit card debt to a no-interest card many times. Well, is the option a myth or a true fact? Debt management experts consider it as myth. The idea of a no-interest credit card might sound great, but it usually leads to an even higher interest rate than the initial period which could ultimately lead to a bad credit rating. And a bad credit rating augments the debt problems even further.
Debt consolidation saves money
This might be a debatable subject, but many people consider it a fact. When you are under huge credit card debt, debt consolidation can be like the light at the end of the tunnel. If you compare your current credit card interest rate with that of the debt consolidation interest rate, you will see the difference. So debt management experts recommend debt consolidation as the best solution to get rid of your debt problems.
Debt consolidation is certainly the right solution to regain financial control. But it’s worth taking the advice of debt management professionals so that you can make the most of these financial opportunities to get rid of your debt problems. Also a little bit of research will make you more aware about myths and facts associated with debt consolidation.
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