Debt Consolidation

debt consolidation, get out of debt, credit card debt

Transcript

1. Debt Consolidation lifethenfinance.com
3. What is Debt Consolidation ? n Debt consolidation is the process of having your debts combined and managed by a 3rd party i.e. debt consolidation company with the hope of a lower monthly payment and interest rate n  n -Credit Card Debt is the top personal debt type in the United States
4. Facts n The debt is still there n The behaviors that lead to the debt are still there n 78% of people who use debt consolidation accumulate debt again n Being in debt is a symptom of a bigger problem n 
5. Debt Consolidation n Myth: n Saves Interest and smaller payments n  n Truth: n Unwise method to eliminate debt. n Reduced interest, one small payment and increased time to payback. Instead of paying your debt in 2 years, it will be 5 years.
6. Debt Consolidation Companies: What they do? n  n  •  Negotiate a lower interest rate with your creditcard company. •  Consolidate all your debt into one monthly payment. •  Most of the plans are approximately 5 years. •  A percentage of your monthly payment goes to fees charged by the debt consolidation company. n 
7. Summary: n  n  n - Debt consolidation is a high risk approach to paying off credit card debt. n  n -Have a plan and do it yourself n - Call your card company directly and negotiate reduced interest payment in turn reducing your monthly payment. n -By doing it yourself, you are modifying your way out of debt