Some people are bad with love, trapped in a constant cycle of miserable relationships, and I am bad at managing money, looking up from a bottomless pit of maxed-out credit cards. Drowning in debt can make you desperate for a solution, so, like many others, I looked into consolidation as an answer for my problems.
What I found was shocking. Debt consolidation is not the cure-all people made it out to be. In fact, the difficult to understand jargon can leave you with more debt than you started with. Here, in layman's terms, are the problems with debt consolidation you should understand before you commit (and the solution I found to them from Pacific Debt).
First of all, there are two types of debt consolidation:
The first is called a secured loan. With secured loans, you basically trade in your existing debt from different credit cards (or loans, or medical bills) for a brand new, larger loan to pay off, hopefully with a smaller interest rate than your previous smaller debts combined. BUT you have to put down collateral, like your house or your car, and debt collectors are now free to come after your most valuable possessions. Secured loans are paid over a longer window of time than any other kind of loan, meaning there's a higher risk that you'll have an emergency, like surgery or a death in the family, that causes you to miss payments and puts your livelihood on the line.
The second is called an unsecured loan. This is also a larger lump sum loan you trade for your many smaller debts, but this one is based on your credit score. That's right, you have to have good credit, a rarity for those of us in major debt, to get this loan. There's also a lot of fine print on these loans that can really sink you -- for instance, the low-interest period can be short. That means if you get lost in the complicated industry jargon, you might not even notice that you're interest is going to skyrocket in a few months or years, potentially leaving you paying more than you were before.
Luckily, I discovered an alternative method that doesn't require you to take on new debt to get rid of your old. It's called debt negotiation. Pacific Debt is a debt settlement service that has a team of experts who negotiate on your behalf to reduce the actual amount of debt owed. I didn't even know it was possible to negotiate with debt collectors! They provide the exact same benefit as debt consolidation -- one monthly payment instead of several -- but without hidden dangers. Pacific Debt has a rare A+ rating from the Better Business Bureau because they're easy to work with, and best of all they don't get paid unless they negotiate down your debt. So there's nothing to lose.
Before you rush into debt consolidation, consider your options. A friendly service agent will answer all your questions (even if you're like me, and need the same thing explained multiple times). And if you move forward, you'll have one person guide you through the whole process, like a financial guardian angel. No more pulling out your magnifying glass to read the fine print. No more debt shame.Take their quiz today to find out how to pay off your credit cards and personal loans for less than what you owe.
Debt can be a huge pull on moving forward with your life, so if you have any other concerns, Pacific Debt can answer all of your questions for free. The first step in the debt settlement process is to have a free phone consultation. Give them a call at (888) 585-9226 to see how they can help you.
