What Are The Negative Ramifications Of A Debt Consolidation Service?

March 22, 2010 - PRLog -- The reason for this is because instead of making all your separate debt payments, you get one monthly payment with a lower interest rate.

Hector Milla Editor of the "Best Debt Consolidation Services" website -- http://www.BestDebtConsolidationServices.net -- pointed out;

“…The advertisements made for these consolidation services usually offer monthly payments that are up to 50 percent lower than your original debt payments. This definitely attracts a lot of interest in customers…”

There are various negative ramifications of these debt consolidation services including

1. Assets such as houses and cars are usually required as security for some of the consolidation services therefore if you fail to make the payments on time, you will end up losing the assets you used as security.
2. The monthly payments that are made are usually lower but if you have trouble making them and decide to reduce the payments even more, you will have increased interest rates and it will take longer for you to pay the debts.
3. It is easy to get back into debt if you begin to use credit cards again once you have credit available.
4. The more debts you have the higher the interest rate you will have to pay on the consolidation services you choose and this can actually end up costing you more than the debt you had to begin with.

“…The only way you can effectively deal with your debts is by changing the way you spend your money because this ensures you remain debt free. Debt consolidation will not work well for you if you are looking for a permanent solution for your financial problems. If you still think this is the way out for you, it is important to consult a professional company that will tailor the services based on the income you make and how much you can pay. A good company will lower the monthly payments you are supposed to make without changing the time period within which you are supposed to make them…” H. Milla added.

Further information about trusted and reputable companies for debt consolidation by visiting; http://www.BestDebtConsolidationServices.net