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How do I get out of debt without getting consolidation loans

Believe it or not there are some people, and some reading this article, that are $25,000 to even $100,000 in debt.  And many others that are much less than the $25,000 mark.  But whatever that debt load is for you, if you are only able to make monthly payments, you are skipping payments, or you skip paying bills because of the amount of debt you have then you have too much debt.  Period.  People are confused by debt and credit.  I speak with hundreds of people about debt on a monthly basis and believe it or not most people think that if they make their monthly payments on time there credit is good.  But that is such a small part of your credit score.  So to all you Houstonians, who are struggling in the world of debt and credit, take some time to read this article and find ways out of the vicious cycle I like to call the wheel of debt.  So if you’re thinking of a getting any debt consolidation loans to stop the wheel from turning you might think again, with this program the wheel keeps on spinning it’s just a bigger wheel.

Consolidation loans work like this; you borrow money to pay off other loans.  Think about it, you are borrowing money from a third party who knows you have debt with someone else.  They are loaning you money to give you relief.  But they are not in the business of giving people money to get them relief; they are in the business of making money.  So they work through everything with you and get you a lower payment than what you currently have.  But they do this by lengthening the term of your original loan.  So believe it or not you are actually paying more when it is all said and done and it is reflected on your credit report.  So other lenders know you are having troubles and you have to use someone else’s money to take care of your debt.  Think about this if someone came to you and asked for money to pay off another loan and they also wanted EXTRA money would you give it to them?  Probably not.  The same is true for institutions that loan money, which is why there is credit reporting.  That way the institutions are not making decisions based on relationships they are making decisions based on history.

Getting out of debt is a process that takes time and patience.  But there is another way that will actually cost you less than what you currently owe and that is to get yourself into a debt settlement program.  Thousands of Houstonians have enrolled into this program and had very good success from it, myself being one of them.  What you have to make sure you do is understand the company you are working with and make sure you do your research.  You want a company who will work with you throughout the program and want to make sure their name does not get tarnished.  Going with a company who has been doing this for more than 5 years is important because it will prove to you they have the history to have gotten people through the program, so watch out for young companies.  Also, make sure you are explained not only the positives about this program but the negatives, it is important to start your relationship off good.  And that means don’t work with a company that misleads you.  So go out there and get yourself out of debt, but do it right and don’t get yourself into more debt in the process.

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