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Banks, credit card issuers, life insurance companies, car dealers and anyone else who loans you money have a closely-guarded secret:

They actually want us to borrow money, and pay it back very slowly.

They don't want our cash as much as they want 3-5 times what we borrow in interest. And it's a huge, competitive industry to get us to borrow more:

• Compare your credit card's minimum payment to the monthly interest. Pretty close?
• Check out those convenience checks and no-interest transfer offers, for being such a "good customer" (translation: "For giving us lots of your money")
• 0% interest car loan? Just don't think about those rebates and incentives you passed up, or that you'll owe more than your car is worth for 3 years or longer...
• How about all those ads for mortgage and debt consolidation loans? Remember: if you pay for a debt consolidation settlement, you are also paying for those ads (not to mention their profits!)

How To Get a Debt Consolidation Loan, Without the Loan

Debt consolidation simply means to combine all your debts into one. Well, there's no secret to consolidating debt; simply add up all your monthly payments, and that is your one debt relief payment, until you are debt free. Why do you need to pay hundreds of dollars for someone to do that for you?

A debt consolidation loan, on the other hand, is taking on even more debt much longer to pay off the others. Here we go again, borrowing more money, when we really just want to eliminate debt. How did we get the idea that more debt can erase our debt problems? From all those TV, radio and print ads telling us so! Could those companies be more interested in taking our money than truly helping us?

Debt Consolidation Secrets You Can Use

1. All your payments are part of one debt, just with several addresses.
2. Add up your monthly payments, and that is your "one payment" until you have eliminated ALL your debts.
3. Split out your monthly payment to the proper addresses in the amounts that get you free again as quickly AND cheaply as possible.

Let's say Bill has two credit cards:

After 3 years and one month, when the first is paid off, Bill starts sending $150 each month to the second card. This is not more money, he's just sending the same payment to one address instead of two. In this example, he will be debt free 1 year and 3 months sooner, saving over $1000 in interest!

Of course, this is just a simple example; most people can save thousands of dollars more. The key is the order; after the first debt is paid, where do you send that payment?