Why is debt consolidation better than a loan?
Borrowing money to pay back borrowed money is economic suicide. If you are able to qualify for an unsecured loan to pay off your unsecured debt (most people do not) you are basically borrowing from Peter to pay Paul. If you take out a secured loan such as a home equity or second mortgage, you are attaching your current unsecured debt to something of value such as your home. The average interest rate in consolidation is 6 to 8 percent, which is usually less than most loans today.
Q: How will debt consolidation affect my credit? Q: Can my credit be repaired through debt consolidation? Q: Can I quit the program? Q: What are unsecured / secured debts? Q: Is this a loan? Do the creditors get paid in full? Q: Who needs our service? Q: I have debts prior to marriage, Can I do this alone? Q: Will creditors still call me? Q: How is my payment determined? Q: Are creditors willing to work with your program? Q: What is the difference between non-profit and for profit organizations? Q: How do I get started on the program? Q: Why does the debt consolidation program work? A: Credit Cards are under a revolve credit payment plan. They are designed to keep you in debt, resulting in your paying an extraordinary amount of interest while trying to pay them off. Under these circumstances, most people will end up paying between 15 and 30 or more years. This means they will usually pay out 5 to 6 times what they originally borrowed. Q: Why is debt consolidation better than a loan? A:
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