US Financial Management, Inc. | Debt Consolidation | Debt, Consolidation, Loan, Credit, Interest

Debt Consolidation

Debt Consolidation Loan Requirements
The debt consolidation philosophy is simple: when applying for a debt consolidation loan, you will be asked to secure the loan against some form of asset (collateral), usually your house or car. The debt consolidation loan will consolidate credit card debts and consumer loans and secure them against a home equity line of credit. The original credit card debt then becomes a home equity loan that is typically stretched out over a 30-year repayment period.

It's impossible to borrow your way out of debt!
Statistics show that a majority of people who apply for a debt consolidation loan find themselves digging themselves into a deeper debt.

Why Debt Consolidation Loans Don't Work
Debt consolidation loans will not reduce the amount you owe; you still end up owing 100% of the original loan amount, plus interest. A debt consolidation loan simply exchanges one debt for another debt at a lower interest rate. Don't be fooled by the lower interest rate. Depending on the length of the repayment period for your consolidation loan and whether or not you incur additional credit card debt, your interest rate "savings" may not ever justify taking on a financial commitment that is secured against your personal property.

The Risks of Debt Consolidation Loans
The majority of people who apply for debt consolidation loans use them to pay off their credit card debts. A debt consolidation loan can be risky because it transforms your unsecured credit card debt into to a "secured" loan and puts your most essential possessions at risk for foreclosure and repossession. Those who enter a debt consolidation loan program often neglect to cancel their credit cards. Armed with an open credit line, most people rack up credit card charges again and find themselves in even deeper debt! In the end, not only will the consolidation loan need to be repaid, but the credit cards for a second time as well! What would you do without your home or car if you had unforeseen financial difficulties and were unable to make your debt consolidation loan payments?

You can avoid unknowingly doubling your original credit card debt by considering U.S. Financial Management's debt negotiation alternative.

Why Paying the Minimum Due Won't Work
Paying only the minimum amount due on a credit card almost guarantees your debt will not be paid off for at least a decade. In most cases if you only pay the minimum due, you may never pay off your debt. The minimum payment due is a calculated percentage of your current balance which is usually in the range of 1% to 5%. By only paying the minimum amount due each month, approximately one-half of that minimum payment goes to pay interest. Although your minimum payment reduces as your current balance decreases, this process takes an extremely long amount of time due to compound interest. Compound interest is paid on the original principal and on the accumulated past interest. Debt settlement gets rid of your debt for a reduced amount.

DISCOVER DEBT NEGOTIATION TODAY!

For your free, no-obligation consultation please complete the form on the right-hand side of the page.

Or Call Toll Free:

1-800-738-5351

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Benefits of Negotiation

    * Avoid the embarrassment of bankruptcy and long term debt consolidation loans.
    * Reduce your personal, business and medical debt.
    * Our clients have saved thousands of dollars with our debt negotiation program.
    * One of the quickest and most sensible ways to reduce unsecured debt compared to other debt management options.
    * Helps to reduce annoying collection calls.
    * Credit Report analysis.