What are the Dangers of Using a Line of Credit or Bank Overdraft to Consolidate Debts?
Using your line of credit for debt consolidation or your bank account overdraft are two of many ways to consolidate debt. They are revolving forms of credit, which means that you can use part or all of your available limit when you need it. You make a payment when it’s due and then you can once again use all or part of your available limit. It is a cycle of using and paying and using and paying.
End the Cycle of Debt - Explore All of Your Options and Have a Plan
The danger with a never-ending cycle like this is that the debt never seems to get paid off. And if you do manage to pay it off one month, it doesn’t stay paid off. This might even be the reason why you’re looking to consolidate your debts.
Rather than staying in debt forever, look at options that will let you pay your debts off for good. A good debt consolidation plan that also lets you set money aside for emergencies will help you do that.
Contact Us for Help - Using a Line of Credit or Bank Overdraft Are Only Temporary Debt Solutions
If you’re tired of being in debt and struggling with your payments, contact us or call 1-888-527-8999 and ask one of our Counsellors to show you better ways to pay off your debts so that you can get ahead with your life. Using a bank overdraft or line of credit to consolidate debts will only Band-Aid the situation without giving you lasting debt relief.