Debt has become a growing financial cancer for our country that is so extensive that financial prognosticators are speaking in fearful terms like never before. Easy credit, lack of controls, mismanagement, and a plethora of other reasons have brought the financial health of our nation to the brink of disaster. Now the seemingly easy answer being touted practically everywhere is American debt consolidation.

The idea of debt consolidation plays to common sense. Why not take out an unsecured debt consolidation loan to lump all your debts into one easy to pay monthly payment? After all it is so hard to face all the various credit card debts, doctor bills, dentist bills, car repair bills, etc. each month that millions of debt-ridden Americans can barely pay the minimum payment. Well therein lies the problem.

The millions of Americans in debt have never been taught how to manage their money. When they became adults, and especially when they married, there was no financial planning owner’s manual in the glove box of life. So, you and I American debtor just continued stumbling along adding more and more credit cards, multiple car loans, and other revolving credit charges to our non-existent budgets. Financial management ignorance is the bane of a huge majority of the American people.

American debt consolidation works this way:

• Look into local credit unions or banks where you currently do not have any business dealings.
• Apply for an unsecured debt consolidation loan that has a low interest rate and a long payment period.
• Once the loan is arranged and you receive the loan proceeds, pay off all your debts.
• Start making monthly payments for a long, long, long time.

Now here is where the problem comes into play. At no time has anyone questioned how you have gotten in way over your head financially. You think that just because all your credit cards have been paid off that you are free to use those cards and any new cards that may come your way, and there will be a bunch of them, too. Now because you have not changed any of your financial lifestyle decisions and practices, you will begin to add more debt to the big debt consolidation plan that you are paying on. You will be in worse shape than before.

The real answer is to not look to any American debt consolidation program as the answer to your debt problem. Instead you should seek out some advice and counsel from reliable debt counseling centers that will able to help you change your financial mismanagement ways. They will help you negotiate credit card debt and will seek ways to create a working budget with your current level of income. That is the answer and that is the only way that you will ever overcome a huge debt problem.

You also may be interested in:

1. Unsecured Debt Consolidation Loans – A Quick Fix Or A Long Term Problem
2. How To Obtain A Free Debt Consolidation Quote
3. What Is The Best Debt Consolidation Loan