Debt Loan

Debt loan: What it is and how it can work for you. Learn all about getting a debt loan here.

Debt Loan

Imagine this: You have a stack of bills in front of you, but you're not worried. You're not scared. In fact, you're a bit smug about hte whole situation. Why? Because you were wise enough to get a debt loan, and now you have the money to pay every single one of your bills off in full! No more paying high interest rates, no more finance charges because from now on, you only have one monthly bill to pay to the debt consolidation loan company, and you'll have the loan paid off in five years. (If you didn't get a debt elimination loan and continued to just make the minimum payment required each month, it could take you up to 18 years to get out of debt!)

The Power of a Debt Loan

Think of the feeling of empowerment you'll get when you get next month's statements in the mail and the balances all say "$0.00." What will you do with yourself and your clean slate? Nothing that costs money, we hope. After all, just because those credit cards are paid off doesn't mean you should go charge them up again. Think about it: Let's say you were paying $350 a month in payments for unsecured debts and that was a struggle. But when you got a debt loan, that number went down significantly because your interest rate is so much lower. Now your debt loan payment is only $200 a month, so that's $150 a month you can use towards things you were using credit for before, or you can save. That's the ideal scenario.

Now imagine this: Instead of using that $150 a month on things you charged before, or instead of saving it, you blow it. Then you start using your credit cards again, and all of a sudden you have $350 a month in unsecured debt again (remember--that was a struggle before) and you have a $200 debt loan payment as well! Where will the money come from then? Do you have enough collateral for another debt loan? If not, you'll have a bigger problem on your hands than you did before.

So get a debt consolidation loan, but be wise--you don't want to get in debt again!

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