The danger of debt consolidation

It’s a common method of dealing with debt . . .

Debt consolidation . . .

Taking all or most of your unsecured loans, paying them off by consolidating them into one payment . . .

Turning a bunch of payments into one payment . . .

One payment that is smaller than all the separate payments combined . . .

Very attractive, and seductive . . .

And dangerous.

This article gives some good information, and some not-so-good information, on debt consolidation.

Debt consolidation can be a helpful tool to help you pay off your loans more quickly than you otherwise could . . .

If it is used the right way . . .

But most of the time it is used the wrong way.

A typical run-of-the-mill loan officer will sell it as a quick, “easy” way to reduce your monthly payments . . .

But this typical run-of-the-mill loan officer never coaches, guides or teaches you how to use this consolidation . . .

How to use this combining of payments into one lower payment, to your advantage.

Instead, the typical run-of-the-mill loan officer sells a debt consolidation refinance of your mortgage, gets you a lower payment, closes the loan . . .

Then leaves – leaving you with nothing but a new lower payment . . .

Which is great as a first step . . .

But it’s not enough.

Here’s the reality . . .

And deep down you probably already know this . . .

What are most people likely to do with those credit cards that now have a zero balance?

Sure, you know the answer . . .

Maybe you’ve done it yourself . . .

That’s right . . .

Charge them back up again!

So, what’s happened?

Now you have a higher balance on your mortgage . . .

And you have new balances on your credit cards!

That’s not how this is supposed to work . . .

But that’s how it usually does work when you let a typical run-of-the-mill loan officer do a debt consolidation refinance on your mortgage.

The typical run-of-the-mill loan officer only cares about doing the loan to get the paycheck from the commission, whether the loan was really right for you or not.

I have a lot more to share about debt consolidation, which I will discuss in future articles . . .

Such as . . .

How a real mortgage consultant would handle a debt consolidation loan the right way . . .

So that it becomes a tool to propel you forward to financial freedom, not drag you deeper into debt . . .

Other types of debt consolidations that are out there . . .

So that you can be fully informed and beware of getting into something that you may regret later . . .

When debt consolidation may not be right for you . . .

And some of the dangers of debt consolidation . . .

So, stay connected and I’ll help you really understand debt consolidation . . .

How it could hurt you . . .

How it could help you . . .

And, either way, how you can become part of the 5% of people who succeed financially . . .

Not the 95% who fail.

As always, it starts with your making the wise choice to work with a real mortgage consultant, not a typical run-of-the-mill loan officer, see the difference here.


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