Hi guys,

Two of my close friends are considering \\\"Debt Consolidation\\\" with 2 different companies.

Both of them does not have mortgage and are renting, so cannot get a HELOC (Home equity line of credit)

One has got a debt of around 80K and the second one has around 50K.

The first company is 'EmpireOne Credit Solutions' and second one is 'GTA Credit Solutions Services Ltd'.

I heard your bank accounts are frozen and you cannot use your credit cards at all for 5 years. Also they told me your debt is reduced by 60% with a monthly instalment for that period.

Can you please share you experiences and what are the pros and cons of doing a 'Debt Consolidation'?

Thanks and regards.

Bangadu

Hi guys,

Just wondering if anybody on this forum can throw some light on this please?

Thanks.

Bangadu

Did they apply for the consolidation or going to? Consolidation will result in one single loan that he will have to pay off to the financial institution, in place of the other debts. Interest will be higher. Before you sign the agreement, you should check with other financial advisers or consultancies about the interest you are offered. But make sure you inquire in not more than three places. You should also read the agreement properly before signing. Also check whether the interest that you are offered should be manageable, because most of the offered interest will be higher than normal. You must decide whether it's better to go with the consolidated loan or just stick with current credit interests. Normally people think it is a http://www.billfixer.com/options/" target="_blank">easy way to get out of debt, but you have to check everything related to it, or else everything ends up a mess. Taking consultancy from a financial adviser will be a great idea.