Credit Card Debt Consolidation Myths and Facts

Are you struggling to decide if you should rely on various comments you may have been told when it comes to debt consolidation? It can require a lot of research to separate myth from fact when it comes to this topic for many people. This is why it so important to discuss what is true and what is not when it comes to a topic that more and more people are looking for answers to due to the recession.

Many of us have had to rely on credit cards just to survive and that is why it is so important that we educate ourselves on the topic of debt consolidation. When our income is low, many of us had to rely on credit cards just to purchase the necessities of life. This can really make our credit card debt sky rocket in no time at all. So, if we want to make the best decision to aid our finances, we most certainly will want to find the right answers to the following debt consolidation questions:

1. Consolidation Loans are Easy to Come By – Many people are under the impression that debt consolidation loans are very easy to get. But is this a fact or yet another myth? While it is not impossible to get a loan, it does require much work to actually get a loan. There is a lot of paper work involved and it is very time consuming. In addition to this, you must qualify to receive the loan to help alleviate your credit card debt or you will not be any better off. So, this would most likely be a myth. Credit consolidation loans are not easy to come by. They require a lot of work to get and you must meet many requirements to do so.

2. Once I Find a Debt Consolidation Company, I Don't Have to Worry About Anything – Do you think once you have actually found a company to assist you with all you credit card debt, you will be care-free? Is this a myth or a fact? The answer to this is even though you may feel much better about the entire situation in terms of your debt and the amount of it when you rely on debt consolidation, it by no means indicates that you will not have anything to worry about, so you could say this is definitely a myth. You will have to pay the credit card debt back and this alone should be enough to cause you concern. You will be much better off by doing this, but you will still be responsible for the debt.

3. Debt Consolidation and Debt Settlement are the Same Thing – Do you often wonder if these are the same? Is it a fact or a myth that debt consolidation and debt settlement are the same thing? It is definitely a myth because these are two separate things. Debt consolidation is when you put all your debt in the same location and are able to secure a lower interest rate, but you are responsible for the debt. Debt settlement is when you are able to get your creditor to actually reduce the amount of debt that you owe. Some creditors may reduce the amount of debt as much as 40-60% and this can really make a huge difference in the amount that is needed to be paid back.

4. Consolidating My Credit Cards onto a No-Interest Card is a Good Idea – Have you ever thought it was a good idea to consolidate your credit card debt on to a no-interest card? Is this a fact or myth? Well, actually it is myth. While this, of course sounds like a fantastic idea, it actually isn’t for the majority of people. The reason being is that although a no-interest card is a great idea, most people will not manage to get the balance paid off. This usually results in a much higher interest rate than there was initially and it is not great for your credit score either. It is ideal to keep your credit cards down to a minimum in order to have the best credit rating. So, it would certainly be best to pay off your credit card debt with the company you currently owe it to.

5. I Need a Debt Consolidation Company to Consolidate My Debts – If you are like most people, you may feel you need a debt consolidation company to consolidate your debts. This is basically a fact when it comes to getting the lowest interest rate. You can, of course, get a loan for any amount and pay off debts, but is this officially considered a debt consolidation? No, you in order to qualify for the lowest rates, you must get debt consolidation loan. However, you should bear in mind that there are many companies that are qualified to give you a debt consolidation loan to alleviate some of your credit card debt. For example, Lending Tree has the capability of doing so and offers some very competitive rates when it comes to debt consolidation loans.

6. I Will Always Save Money By Consolidating – While this question is certainly debatable by most people, it usually is a fact. Most of us with a lot of credit card debt may not be able to see the light in the tunnel. Credit card debt can really pile up fast and we may feel we have no way out. This is why debt consolidation can almost always save you money. Take a look at the credit card rate you are paying and the interest rate you can get when you use debt consolidation. You will see that is quite common for you to save money by consolidating. So, you will want to do all you can to make sure you get the best advice on how to reduce your interest rates on your debt and it quite normal for debt consolidation to be the best route to take.

There are many reasons that people rely on debt consolidation to help the get back on their feet. It can quite possibly be the best way to regain financial control for certain. Where else can you turn to get great advice these days, other than an expert on the topic? In a time when help is hard to get when it actually is needed the most, you can rely on a debt consolidation expert to come to your aid. The key to making the most out of your decision is to be able to differentiate between the myth and the facts. This will certainly make you a wiser consumer and help you get the financial aid you need.

By stopping and taking the time to do a little research on debt consolidation, it is highly likely you will want to invest the time into getting your debt together so you can make the most out of all the financial opportunities that are offered to your through the network of consolidation. So, start to make your life better today and you will be glad you did in your very near financial future.