DebtFreeIQ.com: consolidating your debt guide to freedom

When your debt becomes overwhelming, you might feel like Atlas, holding the world on your shoulders. This is certainly no way to live. Luckily, there are ways to shrug, if you will, and come up for air from the riptides of heavy debt. Sure, you could continue to make steady payments on your debt as life goes on. That’s not your only option, though. If you have something of great value, such as a home or a vehicle, you can but that on the line in order to secure a line of credit that that will put you on the path to consolidating your debt. Steps such as these can greatly improve your credit score and financial health.

If your debt reality sometimes seems more like a nightmare from which you cannot awake, take heart. This option is a fantastic way to get back on your feet quickly and become debt free. Consolidating your debt instantaneously starts to nurse your credit score back to health. This is merely the customer paying off their own debts. Yes, the debt still exits, but transforming the origin of the debt makes it look as though the original debt was paid, which is really all the creditor cares about to begin with. This translates into a positive impact on your credit rating. It looks as though you’re making progress with your debt, and even though it’s still the same amount, you’re certainly helping yourself out.

Most individuals become panicky thinking about their credit score being hurt. There’s no need to get yourself into a tizzy! Consolidating your debt is a simple way to immediately impact your credit score in a good way. This is certainly an option for you if you’re in debt, out of options, and have equity in your home you can leverage.

Consolidating Your Debt Has a Downside

Debt consolidation can be a fabulous tool for getting your finances and credit back on track. However, if you‘re not making the necessary changes to keep yourself from getting back into the same economic snafu, these loans can be deadly. The consolidation will bring the balance on your credit cards back to zero. While this, on face, is a good thing, it can be your downfall if you don’t commit to using credit wisely in the future. Don’t forget, though debt consolidation loans stop the credit card companies from badgering and reporting you, the debt is now owed in the form of a mortgage. If you run up all your credit cards again, you’ll not only be paying off this mortgage, but will find yourself facing the same payments you had originally on the cards. This is not a risk you want to take with your house on the line.

If this pattern of behavior is a concern for you, pick up those scissors and cut up those cards. It may be tempting when your credit goes up and the companies start offering lower interest rates and higher credit limits to slip into old behavior. Why give yourself the chance? Don’t forget why you have the debt consolidation loan to begin with. Be responsible.

Here are some more consolidating your debt resources...

7 Ways to Spot a Credit Repair Scam
If you've recently had an application turned down because of bad credit, you know the importance of good credit as well as anyone. Having bad credit can make life a little inconvenient. You might find yourself paying high security deposits or getting turned down for credit cards, loans, and even jobs....<a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/07/27/7-ways-to-spot-a-credit-repair-scam.htm">Read Full Post</a>
12 Reasons Your Budget Isn't Working
Are you about to give up budgeting because you can't get your budget to work? Check out these <a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/od/reducingdebt/tp/troubleshoot-budget.htm">12 reasons your budget isn't working</a> before you throw in the towel. Usually when budgets go wrong, it's because of the method, not the budget itself....<a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/07/25/12-reasons-your-budget-isnt-working.htm">Read Full Post</a>
Beware Email and Phone Credit Card Scams
Credit card thieves come up with more clever ways of tricking you into giving your credit card information. They like to pose as your credit card company, calling or emailing you to alert you to trouble with your account. Be suspicious any phone calls or emails you receive from someone claiming to with your bank or card company....<a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/07/24/beware-email-and-phone-credit-card-scams.htm">Read Full Post</a>
The Debt Collector Could Be Checking Your Facebook
If you tell the debt collector you're about to file bankruptcy today, you probably shouldn't post pictures of your new Corvette tomorrow. Otherwise, the debt collector could use that information against you. The <a href="http://clk.about.com/?zi=1/1hc&zu=http://azstarnet.com/business/local/article_400b63da-f20e-5d16-900c-7bc6f2728a61.html">Arizona Daily Star</a> report tells of a the debt collector who discovered information on Facebook and used it to confront a businessman who'd lied about his inability to pay a $17,500 debt. That confrontation got him to pay up....<a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/07/20/the-debt-collector-could-be-checking-your-facebook.htm">Read Full Post</a>
Could This Be the Best Cashback/Balance Transfer Card Ever?
How does this sound for a cash rewards deal? Five percent cashback on gas purchases, two percent on groceries, and one percent on everything else. What about a 4.99% interest rate on balance transfer for two years?...<a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/07/15/could-this-be-the-best-cashbackbalance-transfer-card-ever.htm">Read Full Post</a>
Which Comes First: Mortgage or Credit Card Payment?
In this economy, more people are choosing to pay their credit cards over their mortgages, according to a <a href="http://clk.about.com/?zi=1/1hc&zu=http://www.marketwire.com/press-release/TransUnion-Study-Finds-More-Consumers-Making-Payments-on-Their-Credit-Cards-Before-Their-1111336.htm">TransUnion study</a> released in February. Traditionally, homeowners would pay their mortgages before anything else because they wanted to keep their homes....<a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/07/14/which-comes-first-mortgage-or-credit-card-payment.htm">Read Full Post</a>
Looking for Money to Pay Your Debt?
If every penny of your paycheck is already dedicated to something else, paying off debt seems out of reach. You can come up with the money to pay off your debt, but you have to be creative. For example, have you considered getting a roommate or border? What about selling some old things on eBay or Craigslist? I have a list that includes 77 ways to come up with extra money for your debt. <a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/od/reducingdebt/a/moneyoutofdebt.htm">Check it out</a>....<a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/07/13/looking-for-money-to-pay-your-debt.htm">Read Full Post</a>
Will a Magnet Stop Your Credit Card From Working?
I'm pretty sure some of you ladies have had a credit card stop working after you've put it in a purse or wallet with a magnetic closure. Apparently any type of magnet, and possibly even your cell phone, could potentially stop your credit card from working. Check out this article from CreditCards.com: <a href="http://clk.about.com/?zi=1/1hc&zu=http://www.creditcards.com/credit-card-news/magnets-wipe-out-credit-card-data-cell-phones-1272.php">6 answers about magnets' impact on credit cards</a>....<a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/07/12/will-a-magnet-stop-your-credit-card-from-working.htm">Read Full Post</a>
The Credit Card Fraudster's Favorite Schemes
Credit card fraud has been heating up right along with the summer temperatures. It seems like there are more credit card fraud stories than ever. In all the fraud stories, there seem to be some types of schemes that credit card thieves like more than others. Perhaps these are the ones that are most successful. Check out <a href="http://clk.about.com/?zi=1/1hc&zu=http://www.cardratings.com/creditcardblog/2010/07/cards-scams-fraud-rings.html">Fraud Rings' Five Favorite Schemes</a> from CardRatings.com.
Police Find Credit Card Skimmers Equipped With Bluetooth
In a few Gainesville, FL gas stations, police have uncovered credit card skimming devices equipped with Bluetooth. This means the credit card thieves don't even have to get out of their vehicle to retrieve the credit card numbers picked up by the device. They just have to be close enough to the gas pump to connect via Bluetooth and then they can download stolen credit card data to a cell phone or laptop computer....<a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/07/09/police-find-credit-card-skimmers-equipped-with-bluetooth.htm">Read Full Post</a>