Thursday, March 5, 2009

Don’t do these five debt consolidation mistakes

The most common mistake that people do with their finance is that they get into debt. But they should not do any error when they are trying to get out of debt. Following are some common mistakes done by people when they are trying to get out of debt with the help of debt consolidation companies. I am giving you these mistakes so that you don’t repeat them:

  • Most of the people never check their credit report before applying for any debt consolidation loan or before going to any debt consolidation company. So if they’ll not check their credit report, they’ll end up with a debt consolidation loan of higher APR than on their current debts.
  • Most of the people never search for a right debt consolidation company and choose whatever they see first. Thus they end up choosing a wrong debt consolidation company which take only advantage of their situation and sometimes get them into more debt.
  • When dealing with a debt consolidation company, generally people try to know only about interests and monthly payments but never calculate the total fees.
  • When signing on agreement with the debt consolidation company, mot of the people never read terms and conditions related with the agreement and at the end they blame to debt consolidation companies for their financial condition.
  • After the agreement with the debt consolidation company, some people leave all the calculations on debt counselors and end up with a dispute with debt Consolidation Company regarding payments.

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