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  • Will You Add? - How to Avoid a Debt Consolidation Loan Disaster

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    ion loan disaster: you borrow to get out of trouble, but you keep on spending more than you make, and now you are in even more trouble.

    To avoid the debt consolidation loan disaster, when you pay off your credit cards, cut them up! If you can't use them, you can't keep spending, so you can't get into any more trouble. It's that simple.

    A debt consolidation loan is a great way to reduce the interest you pay, but it

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    Interest rates are at near historic all time lows, the economy is in reasonably good shape, and real estate prices in most areas are relatively high. Those three factors are the perfect recipe for a debt consolidation loan, but can also lead to a debt consolidation loan disaster.

    A debt consolidation loan is the process of combining many smaller debts into one larger debt. If you owe $20,000 on five different credit cards, you could get a $20,000 debt consolidation loan; you use the money to pay off your credit cards, and now instead of worrying about making five payments each month, you only have one payment to worry about.

    Reducing the number of payments you make each month is an advantage of a debt consolidation loan, but an even bigger advantage may be that the loan at the bank has a lower interest rate than what you were paying on your credit cards, so the amount of money you are paying out each month also is reduced.

    What's not to like? Lower and fewer monthly payments, at a lower interest rate - it sounds great. It is great, but only if you avoid the most common debt consolidation loan disaster.

    Here's the problem: most people who get a debt consolidation loan to pay off debt end up with even more debt two years later! That's right, the debt consolidation loan ends up creating more debt, not reducing it!

    The problem of course is that for many people the debt was caused by spending too much. Once they get their debt consolidation loan and pay off their credit cards, they are left with lots of borrowing capacity on their credit cards, so they go out and spend and borrow even more!

    That's the debt consolidation loan disaster: you borrow to get out of trouble, but you keep on spending more than you make, and now you are in even more trouble.

    To avoid the debt consolidation loan disaster, when you pay off your credit cards, cut them up! If you can't use them, you can't keep spending, so you can't get into any more trouble. It's that simple.

    A debt consolidation loan is a great way to reduce the interest you pay, but it

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    ferent credit cards, you could get a $20,000 debt consolidation loan; you use the money to pay off your credit cards, and now instead of worrying about making five payments each month, you only have one payment to worry about.

    Reducing the number of payments you make each month is an advantage of a debt consolidation loan, but an even bigger advantage may be that the loan at the bank has a lower interest rate than what you were paying on your credit cards, so the amount of money you are paying out each month also is reduced.

    What's not to like? Lower and fewer monthly payments, at a lower interest rate - it sounds great. It is great, but only if you avoid the most common debt consolidation loan disaster.

    Here's the problem: most people who get a debt consolidation loan to pay off debt end up with even more debt two years later! That's right, the debt consolidation loan ends up creating more debt, not reducing it!

    The problem of course is that for many people the debt was caused by spending too much. Once they get their debt consolidation loan and pay off their credit cards, they are left with lots of borrowing capacity on their credit cards, so they go out and spend and borrow even more!

    That's the debt consolidation loan disaster: you borrow to get out of trouble, but you keep on spending more than you make, and now you are in even more trouble.

    To avoid the debt consolidation loan disaster, when you pay off your credit cards, cut them up! If you can't use them, you can't keep spending, so you can't get into any more trouble. It's that simple.

    A debt consolidation loan is a great way to reduce the interest you pay, but it

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    n what you were paying on your credit cards, so the amount of money you are paying out each month also is reduced.

    What's not to like? Lower and fewer monthly payments, at a lower interest rate - it sounds great. It is great, but only if you avoid the most common debt consolidation loan disaster.

    Here's the problem: most people who get a debt consolidation loan to pay off debt end up with even more debt two years later! That's right, the debt consolidation loan ends up creating more debt, not reducing it!

    The problem of course is that for many people the debt was caused by spending too much. Once they get their debt consolidation loan and pay off their credit cards, they are left with lots of borrowing capacity on their credit cards, so they go out and spend and borrow even more!

    That's the debt consolidation loan disaster: you borrow to get out of trouble, but you keep on spending more than you make, and now you are in even more trouble.

    To avoid the debt consolidation loan disaster, when you pay off your credit cards, cut them up! If you can't use them, you can't keep spending, so you can't get into any more trouble. It's that simple.

    A debt consolidation loan is a great way to reduce the interest you pay, but it

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    e debt two years later! That's right, the debt consolidation loan ends up creating more debt, not reducing it!

    The problem of course is that for many people the debt was caused by spending too much. Once they get their debt consolidation loan and pay off their credit cards, they are left with lots of borrowing capacity on their credit cards, so they go out and spend and borrow even more!

    That's the debt consolidation loan disaster: you borrow to get out of trouble, but you keep on spending more than you make, and now you are in even more trouble.

    To avoid the debt consolidation loan disaster, when you pay off your credit cards, cut them up! If you can't use them, you can't keep spending, so you can't get into any more trouble. It's that simple.

    A debt consolidation loan is a great way to reduce the interest you pay, but it

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    ion loan disaster: you borrow to get out of trouble, but you keep on spending more than you make, and now you are in even more trouble.

    To avoid the debt consolidation loan disaster, when you pay off your credit cards, cut them up! If you can't use them, you can't keep spending, so you can't get into any more trouble. It's that simple.

    A debt consolidation loan is a great way to reduce the interest you pay, but it will only be a short term fix if you don't also reduce your spending, so cut up the cards and make your debt consolidation loan work for you.

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