Do I Need Debt Consolidation Plan?

Is it Time to Consolidate Debt?

Wondering if you need Debt Consolidation is usually a sign that you may need some form of debt relief, be it Debt Consolidation, Debt Settlement or a form of Credit Counseling. 

If you are Reading This, You May Need Debt Consolidation

There's an old saying in recovery circles that says "If you are sitting in an AA meeting, wondering if you are an alcoholic, you probably are." The same may be true if you are wondering if you need debt consolidation. Chances are, you are thinking about it for a reason. It is highly doubtful that someone sitting in a very healthy financial situation will take time out of their day wishing they had more in their bank account unless they are very greedy!)

However, just as with our friend who drinks too much will find a better life in recovery- so too can those who are in too much debt find recovery of a different type- personal financial freedom. Luckily, in both cases, there is a solution.

So, Do You, Need Debt Consolidation?

Let's take a look at some of the common symptoms of an "unhealthy financial situation".

No Disposable Income After Bills are Paid Due to Debt

Working to live and living to work. When you cannot define yourself by anything other than working and paying bills and nothing else, unless it is a short term remedy, you are missing out on the American Dream. Unfortunately too many of us live this exact type of existence.

Not Able to Contribute any Money for Savings Because fo Debt

Whether it is putting money aside for a rainy day (a necessity), saving for a new car, a new home or children' college, living without savings is basically like living on borrowed time. It can be a hopeless feeling of frustrating when we can look years into our future and imagine ourselves in the exact same situation we are in right now. Savings, even a little at a time, is important to feel secure and comfortable.

Rarely or Never Paying with Cash and Using Credit Cards

Using credit cards to pay our basic living expenses will eventually catch up to us. Eventually the balances will cause the minimum payments to be too high to pay off, thus causing the snowball effect of higher interest rates, then higher payments, then late payments, then even higher interest rates and higher payments. At some point your expenses will overtake your income and you will be completely burdened with debt.

Living Paycheck to Paycheck and Not Saving Becuase of Debt

Many salaried or hourly worker employees get into to trouble because of a temporary financial set back. If the type of job is not one that allows overtime or extra commission, where you can pick up extra money, one small bump in the road can put you in trouble for months, even years. Most people actually live paycheck to paycheck, which is very dangerous when something unexpected comes along such as a a medical/health issue, car expense etc). And of course since the paycheck is always the same, once you get behind you can't get caught up

Staying Sick: Not Going to the Doctor Due to Medical Debt

It's one thing to ride out a common cold or flu for a week or two. It's another to remain sick because we cannot afford to take ourselves to a doctor because of a lack of funds or health insurance. This is a very common issue in households were money is tight. Oftentimes it can be a self perpetuating problem as missing work being sick will cause even more larger money issues next month.

Feelings of Depression or Anxiety may be Debt Related

Our minds are wondrous mechanisms for telling our physical bodies that something is wrong. Depression and anxiety don't come out of nowhere and the catalyst of these emotions is often times fear of financial insecurity. People may overlook these mental symptoms or discount them as fatigue or other issues (or ignore them). Our minds and bodies are built to survive, when there is a threat to our survival they will try to tell us to pay attention to that threat. This materializes in depression and other disorders which weren't there before. If you have been feeling unmotivated, uninspired, bored, tired, irritable, or sad you may be depressed over money and not know it.

Fighting with your Spouse is a Sign that You may Need Debt Consolidation

Money is the number one issue that couples argue over. Lack of Money is even worse! In may households, one of the spouses handles the finances. When things go bad financially there may arise a lot of resentment. The bill handler will blame the breadwinner for not making enough, the breadwinner will blame the bill handler for not doing a better job handing the money, and many arguments will ensue. This is looking at the symptoms of the problem, not the problem itself.

Unable to Enjoy Entertainment Because of Debt

Did you know that in many European countries workers take an entire month off from work? As ridiculous as this sounds to our American ears, statistics show that Europeans live happier, healthy and are general more fulfilled in life than their American counterparts. In fact, on average Americans take 8.5 vacation days a year. Unfortunately that statistic is misleading. It is an average based on our entire work force, which means while some of us take 2 weeks, some of us take none at all. Time to ourselves, and with our families is precious time that all should be entitled to. Vacation should not be just a luxury. Our parents took vacations even though they may have had only blue collar jobs, remember the annual family trip to Lake Chigawaloo, we should be able to as well.

Seeking "Get Rich Quick" Schemes or "Work From Home" Money Making Plans May be a Sign of Debt

There is a reason these types are products are appealing. The actors in the commercials remind you of you! Here's the commercial- "Last month we made fifteen-thousand dollars working part time from the comforts of our home. Now We are Debt Free." The companies selling these products know their target audience very well. People who are having financial problems will always be more inclined to let reason slip out of their decision making and get sold on these ideas out of desperation. Unfortunately, the truth disclosure that states the actual success story you are seeing is based on success rates of about 1%, and is buried at the bottom of the screen and almost impossible to see. The old adage, "If it sounds too good to be true it usually is" always applies to any get rich program. Walk away from cash gifting and multi level marketing as well.

Inquire About Debt Relief

If you have read and related to some of what was written above you might have decided that you do need to consolidate your debt. Now you might be asking yourself how to go about it. Below are the three main ways most people will choose to to regain control of their finances, and a few words about each program:

Credit Counseling Through a Non-Profit Credit Counseling Agency

A Debt Consolidation Program that Will Allow the Consumer the Ability to Pay Debts Back with Lower Payments and Reduced, or Waived Interest Rates.

Credit counseling is a very simplistic and effective program that has been in existence for nearly 40 years. Upon enrolling your debts with the counseling agency, each of your creditors will offer different benefits (based on their own criteria and standards) as long as you pay them through the agency. If you are current (but having a hard time staying that way), the monthly payment and interest rate reduction is enough of a benefit to seriously consider enrollment. If you are past due, additional benefits will apply to you such as; a reading of your past due accounts, late fees eliminated, past due balances forgiven, and an end to annoying creditor calls and notices. An additional aspect of the program is having a certified credit counselor to help you with setting up a workable monthly household budget, as well as providing you with educational materials for going forward in your debt free life.

Debt Consolidation Through a Debt Consolidation Firm

A very aggressive debt consolidation program that aims to eliminate debt as quickly and as drastically as possible. Debt settlement is the "new kid o the block" in the consolidation industry. When you hire a debt settlement firm to represent you, you will be instructed to stop paying your creditors immediately and start contributing to a savings account. As the months go on, your accounts will go further and further delinquent. At the same time, your savings account will be rising in funds. As soon as your accounts are far enough behind the debt reduction agency will begin to offer settlements (think compromises) to the creditors. Once your your funds have risen to an amount that has been agreed upon, a settlement can be made.

Refinancing or Taking Second Mortgage to Finance Debt

Tapping into your home equity for the funds to pay off your creditors. You can wipe the debt clean with one shot, but you also will be transforming unsecured debt into secured debt.

Unscrupulous mortgage brokers. Always try your current mortgage company local bank first. If you have a lot of equity and can get an interest rate of around 4-5%, without huge closing costs you could be in good shape, if not credit counseling is almost just effective. Also watch out for prepayment penalties.

The Debt Consolidation Industry in a few short paragraphs.

Inquire Now About Debt Consolidation Information.

I hope the above material was helpful for you. If you have any further questions please feel free to drop me a line at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it .

If any of this Debt Consolidation Situations describe you or your current situation, Debt Consolidation may be the Credit Solution you need to help you Consolidate Debt.  If so please inquire with us about Debt Consolidation, we will gladly provide you with Professional Debt Consolidation Information to help you get your debt issues in order. 

I Need to Consolidate Debt
Do I Need Debt Consolidation Plan?