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Is Debt A Problem?

By Pal Heiden


There are a lot of ways to quickly pay down your debt that don't require declaring bankruptcy. One of the most useful methods is using a debt consolidation loan. These loans are used to quickly pay down any and all outstanding debts, and transfer the debt to the consolidation agency. Sometimes debt consolidation agencies will want a piece of collateral, or a down payment before issuing their loan, but very few agencies will deny you based on your credit score. As long as you can prove that you receive some sort of recurring income, you are eligible for a consolidation loan.

People that are against consolidation say that variable interest rates are to blame after they shot through the root, and caused people to pay much more in the long run than they otherwise would have. These are the same type of people that suggest you only pay off your smallest debts to clear accounts, all the while your larger debts quickly erode your credit score and leave you in a much worse position.

Using the government as the supplier of a consolidation loan lets you know that you have a stable, trustworthy, and most of all legitimate company behind the loan. The interest rate you get is a lot more likely to be fair because the government isn't in it for the money. And you know that they will attempt to work out a reasonable payment plan with you.

Most of the time when an individual is trying to get a debt consolidation loan, it comes in the form a secured personal loan. These loans are secured because these individuals are deemed as having very little ability to pay back this loan, as they are already in trouble of paying their other debts. Consolidation agencies might require a down payment, or even something as collateral.

To get a hold of government help for debt consolidation, you should search on the internet. You may also need to stop into your nearest federal government office. If you are in a position where you are looking for relief to your crushing debt, this is not an opportunity you should pass up.



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