Debt consolidation is on the minds of millions of Americans nowadays. We as a society are increasingly getting further and further into debt. This should be traced back to our school systems, where you do not find any courses on proper money management. This should be taught to us early to avoid getting in financial debt in the first place. With that aside, we need to focus on the matter at hand. We as Americans are in heavy debt. We know this, so let’s review a few solutions.

What is Debt Consolidation? Debt consolidation is mostly done by refinancing your home to pay off higher interest rate credit cards and loans. This would be a great solution; however this causes you to stretch out your mortgage that you may have already paid several years off, into another 30 year loan! In the long run, by doing this, you could be costing yourself countless hundreds of thousands of extra dollars of interest. Your monthly payments may have decreased, but now you have to pay that amount for how many more years??

Let’s also not forget that you have to pay thousands of dollars of closing costs and title insurance fees to refinance. Oh, yes, maybe they are just “rolled” into your loan, so you don’t see them now, but they are their, increasing your overall debt and paying interest on it!

Unless you have a grand plan to not spend more than you make, you will end up charging up those credit cards again! Don’t find yourself there. Don’t be looking back when your are in your 60’s and realize that you have a grim- if any retirement nest egg to fall back on!

There are other creative solutions to this problem (even if you are over 60!). You need to find a good company that can accelerate your debt by creating a “margin” when you do a re-finance. There are still closing costs that apply, but that is okay if you have a stable plan for getting out of debt quickly. You will find that this can help you to continue to pay the same minimum payments on a monthly basis or even a little less, but you are debt free considerable sooner. Their average clients are out of debt in just 7-10 years not paying more a month! They also usually have private banker that ensure your bills are paid on time and assist you to follow through to an early debt-free life! These companies specialize in doing “liability management.” Check them out- you could save yourself literally $100’s of thousands of dollars!