I have a friend who was in deep trouble financially. Although his credit rating was quite fine and diligently paid his obligations on time, he was very much in debt. During that time, he had nine credit cards of which five were maxed-out. He had a total of almost $30,000 in credit card debt. Over the fact that a student loan debt was still hanging over his head, amounting to $15,000. He took on a second job, but strangely enough, the more income he generated, the worse it got for him. He also had no assets – rented an apartment and commuted to work.
I didn’t know, or heard, of anyone with no assets and that much debt who was trying to pay it down. But sad to say, this kind of story is getting more and more the norm rather than the exception.
Well, to cut the story short, he approached a consumer credit counseling agency and they advised him that a debt bill consolidation plus, and that’s a big plus, fiscal maturity will work for him.
With a sound credit standing, he went with the unsecured credit cards for him to begin rebuilding his financial mess. The first thing he did was to discard all his other credit cards after they were paid off.
Within a few years he was able to pay for everything and is now living a debt-free lifestyle.
However, this is not usually the ending. These type stories doesn’t normally come out as fairy tales.. A solid debt-counseling and consolidation firm that genuinely believes in their client’s fight in possessing that financial freedom should be the foremost in someone’s mind when choosing a partner through this kind of crisis. If you’re at the end of your consumer credit line, debt consolidation may be something to consider despite its risks.