Debt Consolidation and the Quick Fix Myth

To a desperate homeowner or debtor, one of the most viable solutions to their problem available out there is debt consolidation. It has transformed into this grandiose “quick-fix” due to the numerous advertisements that proliferate not only the real world but also the internet. However, as most debt counselors and finance advisors will tell you, consolidation does not take place in an instant. More often than not, you will have to wait several months (and depending on your account’s status, maybe a year) to achieve the result you’re hoping for.

A lot of factors come into play during the debt consolidation process, all of which can either shorten or prolong your waiting time. It’s true that you can take on negotiations with your creditor yourself but if you have little to no experience doing this, you probably should expect it to take longer than you assumed it would.

Enlisting the help of a debt consolidator to act on behalf of your account may significantly help your case as most of these agencies are already familiar with the processes involved and the nuances of the industry. It also helps that these companies know just exactly who to talk to within your creditor’s office to speed things up a little bit.

What doesn’t help borrowers at the moment is the current economic situation. Due to the sudden surge in number of homeowners facing foreclosure, both creditors and credit counselors probably have to work twice as hard to cope with the backlog before them.

Banks and lenders realize that it is better and more practical to help consumers work out a reasonable solution to their financial woes than to force them into bankruptcy, where the creditor will get absolutely nothing from the consumer. While this is a good thing for homeowners who are facing or expecting a financial difficulty, it can also contribute to the slowdown of negotiation processing.

This appears to be a dampening factor in anyone’s finance management plans but ask around and a lot of experts will tell you that debt consolidation still makes sense especially in the state of our economy. Just keep in mind that as long as you don’t wait until the last minute, you might still be able to use it to your advantage.