Debt Consolidation

The intelligence behind Debt Consolidation is that you reduce the amount of interest and monthly finance charges you are paying on your existing Debts.  Since a Home Loan is the cheapest source of finance available, because it is secured by your property, the best way of doing this is to increase the amount of your existing home loan and then settle all your other debts in full.  The end result??? You only have the one account to pay and that is your home loan, which also carries the lowest possible interest rate.  One of the dangers involved in Debt Consolidation is that consumers are tempted into spending money which was meant for paying off debt rather than actually paying the accounts.  The other danger is that once the accounts are paid, Credit Providers are very keen to offer the consumer credit and tempt him/her into opening new accounts or even using accounts which have just been paid off.  There is of course also the problem of having a judgment against your name and even if the consumer has paid the judgment, they very seldom have the ability to have it removed from their Credit Records and therefore still do not have a clean credit record.