American consumers came to rely on their credit cards during a strong and seemingly unstoppable strong economy. They used them not just for the odd purchase or emergency funding, but to pay for groceries, utilities, payments of all kinds and even as a quick way to buy a cup of coffee. The credit card debt stacked up but times were economically good for a long time, and then it all ended. The average American family was left holding $16,000 of credit card debt in when economy turned sour a couple of years ago. Struggling just to maintain, many have completely lost their footing and now want to get out of debt. With income stagnant at best, many will turn to the one bit of debt relief they've heard of - debt consolidation.
Debt consolidation is an old method of restructuring bills that can't be paid, and it has been used since ancient times as a form of debt relief. But just like everything else, as time moved forward other and more workable forms of paying off debt came to the surface. There are generalized myths about debt consolidation. It is said to save interest. But if you look at the total amount of interest paid over the course of a long loan, it is actually much higher than the interest on credit cards - in amount. Yes, it is true you have one smaller payment, but that payment lasts for years and years. Debt consolidation merely treats the symptoms of a debt problem because it doesn't eliminate debt, it just makes it a little more palatable.
Debt consolidation also leads people into believing they are confronting their credit debt problems when, in fact, the debt is still there. It just looks different. If companies who deal in debt consolidation are honest, they'll tell you that a huge percentage of people just let the debt mount up all over again, and the second time around, there's no loan available. It's like delaying the inevitable - paying off debt.
Thankfully, today's debt solutions are varied and offer ways of credit card settlement that can fulfill solutions for many different circumstances. Often, it means doing a complete remodeling of spending habits and a real commitment to credit card debt elimination and fast. Both debt management and debt settlement work far quicker than debt consolidation, and when the bills are paid off, the accounts are closed and the debt is gone. These programs offer both financial and emotional help, and often it takes some nurturing on both fronts for the consumer to find true debt relief.
Article Source: http://EzineArticles.com/?expert=Max_Soni
Debt consolidation is an old method of restructuring bills that can't be paid, and it has been used since ancient times as a form of debt relief. But just like everything else, as time moved forward other and more workable forms of paying off debt came to the surface. There are generalized myths about debt consolidation. It is said to save interest. But if you look at the total amount of interest paid over the course of a long loan, it is actually much higher than the interest on credit cards - in amount. Yes, it is true you have one smaller payment, but that payment lasts for years and years. Debt consolidation merely treats the symptoms of a debt problem because it doesn't eliminate debt, it just makes it a little more palatable.
Debt consolidation also leads people into believing they are confronting their credit debt problems when, in fact, the debt is still there. It just looks different. If companies who deal in debt consolidation are honest, they'll tell you that a huge percentage of people just let the debt mount up all over again, and the second time around, there's no loan available. It's like delaying the inevitable - paying off debt.
Thankfully, today's debt solutions are varied and offer ways of credit card settlement that can fulfill solutions for many different circumstances. Often, it means doing a complete remodeling of spending habits and a real commitment to credit card debt elimination and fast. Both debt management and debt settlement work far quicker than debt consolidation, and when the bills are paid off, the accounts are closed and the debt is gone. These programs offer both financial and emotional help, and often it takes some nurturing on both fronts for the consumer to find true debt relief.
Article Source: http://EzineArticles.com/?expert=Max_Soni
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