subject: Consolidate-Debt: Why Consolidate? [print this page] Consolidate-Debt: Why Consolidate?
The most important goal with debt consolidation is to get out of debt. Although debt consolidation onto one credit card is great for easy managing, that is not the sole purpose, nor goal, of debt consolidation. Debt consolidation will only help you to get out of debt if you find a way to lower your monthly payments into something you can actually afford, that way you can pay off your debt, and you can do it without adding more onto your debt!
To get the lowest interest rate possible when consolidating your debt, you will most likely need to go through a debt consolidating company. Although you will need to pay for their services, they can save you much more in the long run than what you would be able to save yourself, even with their charges taken into consideration. They have knowledge of information that is not made public, and they have experience and training with negotiating. Credit card companies will not give you the best deal simply because you call them up and they feel sorry for you. So, to get the best deal, you almost always need to go through a debt consolidation company.
Ideally, you will want your payments to be low enough that you will be able to continuously add to a savings account on the side for financial emergencies, or unforeseen circumstances because it is very important that you do not add onto your already existing debt. Otherwise, your debt will increase along with your interest and before you know it, you are back in the same boat you were in before, struggling to make your payments while your interest increases even more because you are unable to make the payments. Debt consolidation is important because lots of times, just by simply moving all your debt onto one card, you can get a lower interest rate, but a debt consolidation company can get it even lower!
