Article
Index
Why Debt
Elimination Is More Beneficial Than Debt Consolidation
For the past few
years debt consolidation has been the preferred choice of
consumers facing financial difficulty and struggling with
overwhelming debts. However debt elimination is fast increasing
in popularity due the numerous benefits it holds over
consolidating your debt into a new loan.
The major benefit
steams from the fact that debt elimination actually eliminates
your unsecured debt entirely, where as debt consolidation, whilst
it can reduce your overall debt and can lower your monthly
repayments, still leaves you in debt.
Debt Consolidation
although effective still leaves you with regular minimum monthly
payments that you are committed to making in order to become
debt free.
Most debt
consolidation companies also require you to put up some form of collateral
against your new loan (i.e. your home or vehicle). In this case,
if you miss several re-payments and become financially tied up
again, you risk that collateral being sized & sold to repay
what you owe. This is the primary reason why debt consolidation
companies will not touch debts that are already secured to other
creditors.
As such, unless
you are dedicated to sticking to a firm budget and ensuring you do
not take on anymore debt, debt consolidation is an attractive
option for many. However debt consolidation is not going to remove the associated
stress and financial management worries that debt produces.
Because debt
elimination actually removes you debt and does not tie you to
any long term contracts and/or new loan repayments, it not only
provides you with more immediate cash flow, but it also takes away
the stress of having to meet the deadlines of new debt
consolidation creditors and the possibility that you will loose
your valuable assets.
Of course debt
elimination is not without it's own set of disadvantages. You
will find these outlined in the following article...
The
Advantages
& Disadvantages Of Debt Elimination
... and you will
be able to make up your own mind as to whether you think that these
are negated by the advantages of utilizing a professional debt
elimination program.