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Shocking Facts - Debt Consolidation Loans and Scams
By Absolute Debt Solutions, Inc.
Dated: Feb 16, 2008
Debt Consolidation Loans and Scams, debt settlement and negotiations, unsecured debt, consolidation
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With most consumers who are looking for the "QUICK FIX' or quick cash from their equity, stay clear of
the debt consolidation loans. Although it may seem to be the most passive, and have great short term
results, the end facts are clearly not in your favor. If your conducting a refinance to fix your ARM loan that
is one thing, but do not take the extra for credit card debt.
In most cases, the pit falls of these loans will cost you the entire term of the loan. Title fees, commissions
to the loan officer, points "front and back", and the increased interest rate, for another 20-30 years is what
you have to look forward to. All this to pay off "UNSECURED DEBT". Credit cards and medical bills are
all unsecured with no leverage on your home till such time as you make the mistake of a debt consolidation
loan. After paying off the credit cards with your hard earned home equity, these loans are no longer
unsecured. They are now your new home loan.
In over 80% of debt consolidation programs the consumer will either default on this loan, max out all
credit cards again, doubling their debt load, or both. Consumers need to do their home work when
considering handing their home over the the credit card companies for a quick fix.
Here are things to consider before signing on dotted line.
Reduced Monthly Payments. The significant decrease in the monthly payment is probably the most
alluring benefit. What are you going to do with the extra money? That is one of the big questions.
Reduced Interest Rates. You may be able to get a lower interest rate with a home equity loan because it is a
secured loan. Don't get fooled by the word "secured". This does not imp