Debt Consolidation Loans
If you are living in United States, than you must have heard about the Debt Consolidation & Debt Consolidation Loans. However, if you don’t know what is debt consolidation than read my article about Basics of Debt Consolidation & How it works?
Most of my American friends ask me that, “Hey, I have taken the Debt Consolidation loan recently. But it did not work for me. Please opine.”
The obvious question is – Do Debt Consolidation loans really work? And if they work than why most of the people say that it did not work for them? Well, the Truth is that, the Maths behind the Debt Consolidation loan really works but in real life it doesn’t work for most of the people.
This is because debt is not only a mathematical game but it’s the emotional game also. Debt consolidation loans don’t work for all the people because all the people don’t change their financial behaviour. Well, I am talking about bad money spending habits and compulsion to use your credit card very often.
Debt consolidation loan is a long tenure, low interest loan usually backed by your home. Once people go for it, their monthly loan payment reduces to almost half and their credit card limits are revert back. Now, ideally you should stop borrowing more money once you go for this loan. Ideally you should cut down all of your credit cards once you go for this loan.
But most of the people don’t take any action. They don’t stop borrowing more money. In fact, they start borrowing more money because now their credit card limits are un-freezed and their monthly loan payments are reduced to half.
So if you want that, debt consolidation loan really work for you than first of all stop borrowing more money. Cut down all of your credit cards and change your bad spending habits. Than and only debt consolidation loan will work for you.