Have you felt despair or helplessness when you send all that money in payments and your debts do not diminish? You feel that your work is in vain because all the money you earn goes in payments and it seems as if you are stuck. This is when the mind says: “I must be doing something wrong; or, there must be some other solution to get out of this financial blockage in which I find myself.”

 

This is when the answer appears in front of your TV or cell phone: "If you feel stuck, the solution is to consolidate your debts." It is not for nothing, but the word "consolidate" sounds like a sophisticated plan and if it is sophisticated, "it must work." Besides, when one is drowning, even a chain looks like a rope with a lifeline.

In order for us to compare apples with apples and not with pears, let’s take help TROUT ASSOCIATES REVIEW:

 

When you send a payment to "they" and "they" make the payments for you. This type of plan is more a debt administration, although it is also called debt consolidation. It sounds attractive because you think: "instead of sending eight payments, which have me very stressed, I only send one and they make the payments for me." Normally, this type of plan is offered to a person who does not qualify for a loan to pay off all their debts and be left alone with one.

The promises go beyond making your life easier with a single payment. They promise to reduce your interest or debt amounts; And, the main one, is that that one payment will be less than everything you paid. Besides, they take care of everything, even talking to the banks to negotiate a better interest or reduce the amount of debt. The truth is that today most banks do not talk to anyone who is not responsible for the debt or account owner; so the story that they do everything for you, are Chinese tales to force you to sign.

 

When the debt chains are weighing you, consolidating debts is like when a child stumbles and instead of curing it you say “heal, heal, frog's tail, if you don't heal today, you will heal tomorrow”, because what you are doing It really is taking off your chains and paying someone else to load them for you.

 

Of course, this service has a cost; And, now, part of your total payment is to cover the price of your services. So that payment Part of your total payment is to cover the price of your services. So that payment Part of your total payment is to cover the price of your services. So that payment little one that they promise, minus their commission, will make you indebted for longer.

 

The other type of consolidation is when you take out a new loan to pay off all your debts. This can be a loan that they offer or "help" you to ask for a loan against your home. The idea is to consolidate all your debts under a single loan. This requires that you have good credit to qualify for the new loan. One of the problems with this type of consolidation is that they put debts where they do not improve your interest, but quite the opposite.

 

It is obvious that the interest on the cards will be reduced, but they also include medical debts, in which no interest is paid or the car debt that most of the time has a lower interest. As with all services, they will also charge you a commission - and I don't have any money to charge, that’s the way business is - I just think you can only get out of debt faster than with a program like this. This type of consolidation tends to structure it in long payment periods such as 5, 7 and even more years. The goal should not be to pay less for longer, the goal should be to have no debts.

Author's Bio: 

Thriller Author | Craftsman | Entrepreneur | Recovering Neuroscientist | Shaves Head with a Safety Razor and Drinks Black Coffee | Love to write on new things.