More Americans than ever are feeling the economic crunch crashing around their heads. So many of them owe over $10,000 in credit card debt and the numbers keep rising. Add to all of that, they have car payments, a mortgage payment or rent to pay.
A large number of these folks are hearing a great deal about the help the government is offering the debt ridden. The government has given the money moguls bailouts so consumers have a chance at getting some debt relief in the form of debt consolidation and debt settlement.
What’s The Big Question
One of the big questions many that owe these debts are wondering is “can I write off credit card debt on a debt consolidation loan?”
First you need to know what a debt consolidation loan is if you aren’t already aware. It’s a new loan that is usually secured against a home. You use this loan to pay back the unsecured debt you owe, such as credit card debt. The reason you’d take out this type of loan would be so that you could combine the many payments you make monthly into just one monthly payment.
What Are The Advantages
One of the biggest advantages is that the interest rate on your consolidation loan is less than the interest rates on your credit card payments. You have a longer period of time to pay the loan back, therefore leaving you a little more money each month. Another advantage to a debt consolidation loan is it won’t affect your credit score in a negative way such as bankruptcy would.
So the real answer to can I write off credit card debt on a debt consolidation loan is not really a yes. You will pay back the actual loan but with less of the interest and penalties the creditors would charge you.