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 . . .
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.