http://www.american-debt-solution.com/debt-consolidation-loans.html Debt consolidation loans can enable you to pay off all of your unsecured debts at once. Learn about the pros and cons of debt consolidation loans here. en-us Sat, 26 Jul 2008 15:00:00 EDT Sat, 26 Jul 2008 15:00:00 EDT Weblog Editor 2.0 Debt Facts and Figures We're about to list some unbelievable facts about debt. You might want to sit down for this. Consider: Americans spent $2 trillion buying "stuff" on credit in 2004 Currently, the total of unpaid balances on "revolving" credit (credit cards) is over $800 billion. (In 1980 it was $50 billion.) Consumer debt totals over $7,100 per person, not including mortgages The average credit card balance for senior citizens went up 89% from 1992-2001 Heard enough? It's certainly enough to hear. Are you part of these staggering and sobering statistics? If so, you might want to consider help in the form of debt consolidation loans. Debt Consolidation Loans Explained Debt consolidation loans are loans made to people who want their unsecured debts paid off quickly. It's good because you immediately quit paying the high interest rates that are typically associated with unsecured debt. The interest rates on debt consolidation loans are just about half of what you're paying on your unsecured debts. That means you can be out of debt in about five years. The Danger of Debt Consolidation Loans A lot of times, when people get debt consolidation loans, it opens their eyes to the situation they've found themselves in. This is particularly true if they participate in any kind of credit counseling while paying back their debt consolidation loans. The counseling teaches consumers how to budget, how to save and most importantly, how to use credit wisely. They stay out of debt this way. However, some consumers don't learn their lessons right away. The key is to find out as much about a debt consolidation loan before you take it out. While some people are quick to close their credit cards when they get a debt consolidation loan (or at the very least stop using them) others see a zero balance credit card as an opportunity to spend again. Then they are eventually met with high required minimums again. With high minimums and a debt consolidation loan payment, they find themselves getting deeper in debt than they were before. If you decide to look into debt consolidation loans, be careful and wise. If you don't think you can be disciplined enough, there are plenty of other debt reduction options, such as online debt consolidation, student loan debt consolidation and bad credit debt consolidation. Consider one of those instead. Sat, 26 Jul 2008 15:00:00 EDT