Is debt consolidation a good debt relief option?
Debt consolidation is exactly what it says….consolidating multiple debts into one payment. This involves taking out a loan. This is often done to secure a lower interest rate, secure a fixed interest rate or for the convenience of simply making one payment instead of many, although usually for a much longer period of time. However, in almost every case we review, we find that the lower payment exists not because the rate is actually lower but because the term is extended. The decision to consolidate must be weight very carefully as consolidation can severely affect the ability of the debtor to discharge debts in bankruptcy. Another option to research would be a debt settlement program with a reputable credit card debt settlement firm.