Is Debt Consolidation a good idea?

Debt consolidation loan. good, bad, or ok idea?

• I am 24. I had a financial mistake of a year in 2007. I have one credit card that I had disregarded. It was a bad way of going about things, i know. I am finally am caught up on everything else and even back in school. anyways, My account was sold to a Law office and they need the balance of 2,400 immediately. I don't have the money. I have my other cards down to a total under 1,000. If I consolidated it would be a total of like 3,200. Which is not much, actually being that I am not a homeowner which such a small lump of debt, I don't really know if a consolidation loan is even worth the extra interest. I live week to week on a waitress income. I want to avoid this going into legal action at all cost. Any ideas? oh, and obviously this has put a sore thumb on my credit score.....another part of the puzzle. any experience or ideas that might help are appreciated.

• Answer:

  The easiest method of getting a debt consolidation loan is to utilize the equity of your home. Equity of your home is calculated and determined by the difference in the amount you have paid and the amount you owe. If the amount you have paid is more than the amount due, you can use it as collateral. This allows you to borrow money on lower interest rates. Besides, you also get tax benefit on this type of loan. Consult your tax advisor before opting for this loan. http://debt-trap.com/category/Debt-Consolidation-Basics.html