Home » Finance » Debt Consolidation

Consolidate Debt Carefully

Aug 17, 2007
When you are looking to consolidate debt you must be careful what moves you make to do this or you can get yourself in even bigger trouble. Do not get yourself talked into taking another loan to pay off the money you already owe.

If you are able to get one based on your present difficulties you will only find yourself paying interest on top of interest by using this method. The same goes for your idea to take a second mortgage on your house to help you consolidate debt and pay it all off at once. Your home should be the most prized thing you own and so the last thing you want to do is encumber it with more debt. Interest rates on second mortgages will be much steeper than what you are paying for your first mortgage.

Some of the services that help to consolidate debt may suggest that instead you try to borrow against your retirement fund. A retirement loan does not need a credit check so it is an easy loan for you to get. It also comes with a low interest rate. These two things certainly make it an easy option in the process to consolidate debt. You will be able to get a fixed interest on a loan that will likely be for five years. That should make it easy for you to pay off.

So, by using your retirement fund to consolidate debt you will pay off what you owe all at once. It is a great idea, right? Not necessarily. This can be a risky practice if you are concerned about being able to pay off the money your have just borrowed. A retirement fund is supposed to be there for your future. Borrowing against it puts that money at risk.

Either of these solutions can be potentially dangerous ways to deal with your need to consolidate debt. You should not risk or home or your retirement fund. Since you also do not want to risk bankruptcy what you really need is to find a way to work on a better payment plan for you to pay off your debts.

Many people will turn to debt consolidation companies to negotiate with creditors and then to manage their monthly payment issues. This can be a good solution but even this plan can have problems. These companies are popping up all over the country and not all of them are honest. Many of these companies have been involved in dishonest activities with their customer's money. Before deciding on one of them investigate them thoroughly. Check with the Better Business Bureau. Make sure that when you consolidate debt you aren't simply finding more trouble.
About the Author
Joseph Then give sound advise on personal finance. Find out how you can remove and manage debt consolidation today. Receive FREE information right now at: Bad Credit and Personal Finance Management
Rating:
Please Rate:
(Average: Not rated)
Views: 132
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources