For Immediate Release:
Gregg Marcus: Is Debt Consolidation Always a Good Option for Debt Relief?

Melville/New York/USA (August 3, 2009) Debt consolidation may not always be a good debt relief option. Why? There are few reasons and these reasons are interlinked. "Your financial stability is determined by your spending habits. And unless you strike a balance between your income and your expenses, it is difficult to maintain financial equilibrium." remarked Gregg Marcus, Executive Director, Somerset Mortgage Lenders.

Undoubtedly, debt consolidation (http://www.debtconsolidationcare.com/) has helped many debtors get out of debt and it is not a very bad debt help option either. However, availing debt relief alone will not suffice; you need to change the manner in which you handle your finances.

If you have to face an unavoidable financial emergency and if you fall behind on your payments again, your lender will take away your collateral. And in most of the cases, collateral used is your house. This is true in case you are opting for a debt consolidation loan that is secured.

There is another reason why debt consolidation may not meet your requirement always. It is a well known fact that you are making payments as per a new repayment plan if you enroll for a debt consolidation program. For reasons unknown if you have to shell out cash all of a sudden, it will be in addition to what you are paying each month. This may make you fall behind on payments again.

Regarding this subject, Mr Marcus remarked "As long as you are able to stay within the boundaries of your regular expenses and making payments as per the repayment schedule, debt consolidation will work fine. The moment you have to shell out extra cash and you don’t have a financial support to back you, you may be heading for trouble again".

With the help of a debt consolidation program you can do away with debts related to credit cards, student loans, store cards, utility bills, medical bills, personal loans etc. You will not be able to wrap up your debts that include mortgage and auto loan.

"When you consolidate your debts, you pack your multiple debts into a single account that makes your debts manageable. This can be done either with the help of a debt consolidation program or a consolidation loan" said Dorothy Parker from RealEstateGuidance.org

In case you are opting for a debt consolidation loan that is a type of personal loan, you may or may not use collateral. In case you are using collateral, the interest rate attracted by the consolidation loan will be less. However, if you are not using collateral, the amount you have to shell out as interest rate is very high.

"When you hire the services of a debt consolidation company, they will talk to your creditors and convince creditors to reduce interest rates. It lowers your monthly payments considerably. A repayment plan is also worked out so that you can make payments as per the new repayment plan. The repayment plan is usually prepared taking into account your convenience in making payments", Ms. Parker said. "That could mean the difference in making the bills this month or not".

Somerset Mortgage Lenders, with their main offices right in the heart of Long Island, have been in the mortgage business for 30 years; currently located at 290 Broadhollow Rd Suite 310 E in Melville, NY 11746.

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Somerset Investors Corp. is a mortgage banking firm that prides itself on attaining the highest ethical and moral standards and is dedicated to providing quality mortgage products at value pricing to our customer. Somerset has a long-standing history of servicing its local community as a reliable mortgage company. Our goal is to establish a successful partnership with our customers, staff, investors, and markets that respect the interest and goals of each party. Somerset Investors Corp. has been built on the belief that to be successful in mortgage banking it must first begin by molding itself as a customer service firm that provides quality service to the public.

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