Consolidate Your Debts With A Personal Loan

By Author: Alisdair Cosgrove
Total Articles: 184
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If you happen to be one of the millions captured by crippling credit card debt, you may already know enough about the situation to understand that paying only what is required on your soaring balance will leave you enslaved to debt on a long-term basis.

It should make perfect sense that you should refrain from using your credit cards and accruing more debt before you take out a personal loan with the intention of consolidating debt. You must stop using them or you will make no progress with the loan. It really does matter what method you choose to help consolidate your debt if you cannot curb spending and start living within your means.

Making real progress towards eliminating debt will require a change of perspective when it comes to your usual spending habits. Hundreds of people have seen the merits of debt consolidation by personal loan but have failed to make the break with their past spending patterns; this has resulted in either more debt or no change at all to your financial status. This may be enough for many of you to do the smart thing and remove the credit cards from the equation.

By using ...
... a personal loan to consolidate debt, you will be able to pay off the remainder of your debt far faster when compared to making the minimum payment each month on a credit card. This is largely because personal loans offer lower interest rates than credit cards so that you are paying more on the principal than on interest each time you make a payment on your loan. This is a great benefit that should open up more possibilities for getting out from under all of that debt.

Before you go out and get a personal loan to consolidate your debts, it may not hurt to consult a credit counseling service. There are genuine reasons to consider this idea first, especially if you think you might be interested in purchasing a new home or vehicle in the next three to five years. Talk to a reputable counselor and see what options are available give your particular financial situation.

Bear in mind that the services and counsel you receive from a credit counseling service is available absolutely free and they are in an active relationship with creditors and collection companies, trying to bring down your interest rates or remove them altogether for any outstanding loan balances. They specialize in the in lowering interest rates and constructing sound debt consolidation plans that reduce your efforts to paying one payment each month.

Although you may be set on consolidating your debt using a personal loan, there may be times or situations where a debt counseling service may offer a more flexible option that works better with your individual financial status. It comes down to what you think will provide the best course for getting out of debt. You have to decide what will work the best.