What if You Already Have One?
 
There has been a lot of talk about the government helping people with their debts. They say that there are amounts that the government is going to forgive so you should take advantage of that. But what if you already have a debt consolidation loan? Can you pull out a portion of the loan and get it written off – probably not. It all depends on who owns your loan and how it was written.
 
A debt consolidation takes all of your debts and puts them together into one payment. This makes it much easier for you on a monthly basis, and is already saving you money. But they will not write off part of your debt. You agreed to pay back the company that you borrowed the money from, and they have already paid back your credit card debt.
 
At this point your debt consolidation is the same as any other loan. What is unclear is how they are going to handle those people that are defaulting on their debt consolidation loans. This will go on their credit as a black mark, but some think that the debt consolidation companies might be willing to work with you as they know what got you into this mess in the first place. The debt consolidation is already saving you money, so they aren’t going to do anything in regards to cutting down that debt for credit card purposes, but if the bank sees that you cannot make the payments they might be willing to work with you in some manner.

 

 

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