Nothing is for Free, Including Debt Consolidation

A Credit Article Contributed by Mark Mcclelland

Why Would You Ever Think That Anything's Free When It Comes to Debt Consolidation?

While "free" may not be one of the words that comes to mind when you're considering whether or not to subject yourself to the pain of debt consolidation, it'll certainly be one of the words you'll think about things when the process is over. And make no mistake about it, it'll seem like not only does everybody want their pound of flesh, but most of them have taken more than their fair share out of your hide.

What about "Free" Debt Consolidation Agencies?

In spite of the what you may read or hear, nothing is free, and this includes dealing with debt consolidation agencies of any sort regardless of their legal status, meaning whether they're a for-profit or not-for profit organization. Even non-profit organizations have paid employees. And like all organizations, the more successful the organization is at whatever it is that it does, the more the paid employees get paid.

But one of the benefits of working with a non-profit organization is that you can be assured that the agency isn't sending it's executives to Caribbean islands to celebrate their birthday, or buying million dollar painting to hang in the CEO's home, that was also paid for by the non-profit agency.

So, while even a non-profit agency will pay for the cost of its operations out of the deposits that the debt consolidation program participants make on a monthly basis to the agency, these non-profit agencies are certainly better than the alternatives.

What Does "Free" Means after Debt Consolidation?

Well, after you've completed your debt consolidation program, paid off all your unsecured debt, and the only bills you're paying are for your living accommodations and your utilities, the word free takes on a whole other meaning.

Now that you have cash in your pocket again, you're free to do with it what you will. Go on spending sprees, take lavish vacations, buy that new European speedster, or sign up for a raft load of new credit cards, or all of the above.... Yep, now that your credit history is back on track and your reports have been cleaned up because you've spend the last 3 to 5 years in the debt consolidation program, you deserve a break today, right?

As harsh as this may sound, the answer is no, you don't. Think about you previous situation, why you had to go through the debt consolidation program to begin with, about your spending habits, and your life style then and now. Sure you're free to do all the not-so-smart things you did in the past, but do you really want to go there again? This new freedom is a double-edged sword, and you have to protect yourself from getting slashed on the back swing.

If you want to be debt free, and remain debt free, do the smart thing next time and protect yourself from the forces that are constantly yelling at you to let it all hang out... just go for it. Not.