Average Consumer Debt

Debt consolidation may be a good idea for people with excessive debt.

Even if you have a good credit history, it is a prudent to investigate your own credit report, especially if you are planning a major purchase, such as a home or car. Checking before-hand on the accuracy of the information in your credit report is important because there are often many mistakes that can be fixed quite easily. This will insure that you get the loan rate you are entitled to.

Debt consolidation loans can be used to pay off bills. Most often you use the equity that you have built up in your home to get a line of credit. These loans have little to do with debt consolidation for those people who are struggling. These are loans against your home, often with variable interest rates. This type of debt consolidation is not done through a credit counseling service. They are usually just bank loans that you have to pay back. However, interest may be tax deductible. As you can see, it is good to own a house in the United States. However, not all of us are so lucky.

Visit the FTC's site for more information: Average Consumer Debt