Debt Consolidation is Just the Start

Debt consolidation is, for many, the solution to years of struggle with debt. By shrinking their various credit card debt into one larger loan, consumers may experience the convenience of paying just one credit card bill every month and save on their overall interest payments.

The credit card debt consolidation process, while allowing consumers the freedom to focus on other aspects of their financial well-being, is effectively a life-line. Within a matter of months, debtors can experience the liberation of being debt-free.

Then comes reality. Lenders begin sending credit offers in the mail, promising low introductory rates and a future filled with purchases the consumer can not really afford. This is the ugly downside to debt consolidation. Consumers, weightless and carefree at last, want to celebrate the completion of their credit card debt consolidation loan with a spending binge. In short order their credit cards are maxed out, and they begin to shop around for another debt consolidation loan or worse, bankruptcy attorneys.

These kinds of experiences wrack the seasoned credit counselor with despair. Their clients, who years before were burdened by tremendous debt and have since become debt free, are back to square one.

This all-too-typical story need not happen to those with mountainous debt. Consumers must make a reasonable budget as soon as they secure a debt consolidation loan. Financial health comes from developing frugal and responsible spending habits.

It is a life-long process which, for long time debtors, begins with debt consolidation. You can recover from your bad credit debt, but you must be willing to make the hard decisions to change.

Source by Robert A Johnson

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