Eliminating Debt
 
Debt consolidation does not eliminate debt if you get a regular debt consolidation loan. It will help you get debt free faster, but it will not eliminate any debt that you currently have. The idea behind a debt consolidation has been around since the 1980’s when Ronald Reagan was president, and many millions of citizens have taken advantage of them over the years.
 
But there are also things to be learned from a debt consolidation – if it is done correctly. You can get a debt consolidation and pay off all of your existing debt – leaving you with the one payment. You then pay this debt consolidation loan down and end up debt free. Now everyone is happy as you have paid off all of your creditors and you paid back your loan – and you did it at a lower interest rate which means you saved money doing it.
 
This is all very positive, unless you then run those cleaned off credit cards up again. This is not how it works! You will now have the debt consolidation loan to pay off – which is just all of your old debt – plus all of your new debt to pay off as well. This will leave you on the road to bankruptcy as you will not be able to pay back all of that debt. If you think this might be you, you should get rid of all of your credit cards as soon as you pay them off with the debt consolidation so that you are not tempted to use them again.






 

 

 

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