Debt Elimination Loan - Go For The Gold
With a debt elimination loan there is no going back - you're committed to completely eliminating all your existing debts, and stopping at any point before complete repayment will simply leave you with a gargantuan debt to deal with. Consolidate? Yes, by all means you should consolidate your debts, maybe even work on credit card debt elimination - but to completely eliminate all your debts with a single loan? Its not the best plan.
Rethinking your debt elimination loan decision
We understand - you are tired of debt, tired of years spent paying worthless interest rates and late fees and you just want it done with. We know, and we know how tempting debt elimination can be. But there are some debts tat are extremely important to our financial balance, some that simply should not be touched by a debt elimination plan and be al;lowed to run its natural course:
- Mortgages - refinancing your mortgage into a debt elimination loan is an extremely dangerous idea. You are effectively tying your single most important investment in with the rest, with the mess you've been battling against for years. Keep the low rates and long repayment term, and keep your home finances separate. We're not talking about equity loans here, just first mortgages transferred into something other than another mortgage.
- Student loans - Sure, they might be for hundreds of thousands of dollars, and you will probably be repaying these loans for years to come. But pulling student debts into a debt elimination loan will almost guarantee you an increased interest rate and a decreased repayment term, meaning you've lost on all sides of the deal and are now pressured into higher monthly payments than ever before.
All we're saying is you need to use your mind. Thank about what your doing when you apply for a debt elimination loan, and make sure you're not eliminating something that is of importance to you. Despite the stress, despite the urge and the dream of debt freedom, be extremely careful about your decision to take on a debt elimination loan.
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