Oh Those Great Offers For Consolidating Credit Card Debt

If you have half decent credit then you get junk mail every day that tries to get you to consider consolidating credit card debt with various financial institutions and some of them seem like very familiar names. You will see names like GE Capital and other familiar names but remember that just because they use the name of a big familiar company does not mean they are still part of that company. They could have been spun off years ago and are their own organization. That also doesn’t mean that they can’t lend a helping hand when it comes to consolidating credit card debt, they can. You just have to be careful that in the process of consolidating credit card debt you don’t dig your financial hole any deeper. There is a danger to consolidating credit card debt because many companies make it seem so easy.

You’ll get these documents that look like checks made out to you for huge sums of money and it seems like the answer to getting out of your debt. The reality is that they are offering you a way of consolidating credit card debt that uses the equity in your home as collateral for a line of credit that you can use for consolidating credit card debt. You should probably avoid using equity lines of credit for consolidating credit card debt. Lines of credit are used for major expenses like college for you children or remodeling your home. Plus they are tied to your home's mortgage and you do not want short term debt like credit cards to turn into a long term obligation. You can just throw those offers in the garbage.