SOURCE: Total Debt Relief

December 03, 2009 17:21 ET

Debt Consolidation: Worthwhile or Worthless? Total Debt Relief Explains

With Credit Card Debt a Major Issue and the Christmas Shopping Season in Full Swing, Consumer Advocate Explains Debt Consolidation and Other Debt Relief Programs

CHICAGO, IL--(Marketwire - December 3, 2009) - We've all seen the TV commercials and heard the radio commercials touting debt consolidation and home equity loans as a way to pay off debt at a low, fixed interest rate. These offers can be enticing to consumers with their backs up against the wall. So the question in many people's minds is: does debt consolidation work?

Consumers need to pay close attention to the following:

Consumer advocate Total Debt Relief advises consumers to understand that when it comes to unsecured debt, and credit card debt in particular, the taking out of a debt consolidation or home equity loan to pay off credit card debt is in the exchanging of unsecured debt for secured debt. This is risky strategy.

If a consumer takes out a debt consolidation loan in the form of a home equity loan and is at some point in the future unable to make their monthly payment or fall behind -- they absolutely would be at risk of losing their home. Therefore, Consumer beware.

Debt consolidation is by no means a simple walk in the park. It brings with it many possible pitfalls which consumers should be aware of.

When it comes to credit card debt, there are other debt relief programs which offer high success rates with less chance for collateral damage or negative, unintended consequences. These include consumer credit counseling and the newer debt relief program known as debt settlement.

What is debt settlement and how does it work?

Debt settlement is a debt relief program whereby a debt settlement firm will negotiate on behalf of the consumer in debt with the consumer's creditors in order to obtain a reduction in the total amount of debt that is owed.

In a typical debt settlement, debt reduction of 50% is the norm. The result is a win-win for both creditor and consumer. The creditor gets repayment of some of what is owed, and the consumer avoids having to file for bankruptcy.

Total Debt Relief offers consumers a free debt evaluation which they can take advantage of at their website:

Contact Information

  • Contact:

    John Chase
    877-224-2950 x 7016