PostHeaderIcon Debt consolidation companies..scam?

I have been looking up debt consolidation companies and seeing alot of what I don’t like. I’m wondering if this is even worth it or if you end up paying more than what you started with. Are these also a scam? Any suggestions as to what other areas I should look into would be greatly appreciated.

One Response to “Debt consolidation companies..scam?”

  • dj says:

    Debt consolidation makes sense if you’re in debt because of a temporary situation, such as a period of unemployment that’s ended or a medical condition which is now resolved. Be sure that your new interest rate is lower than the old one, otherwise it”ll cost you more than what you’re paying now. Be sure, too, that it’s not secured by your home. A credit card company can’t take your property if you don;t pay, but if you have a secured loan they can.

    Above all, be sure you can get by without using credit cards if you’re going to consolidate your debt. Too many people use a consolidation loan to pay off their maxed-out cards, then they continue using the cards, and pretty soon they have twice as much debt as they did before.

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