Personal Debt and Government Debt Consolidation Loans

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by Dean Byler

We’ve been hearing a lot on the news recently about the promise of stimulus packages and corporate bailouts. Does anybody else wonder if and how this might affect government debt consolidation loans? Uncle Sam seems willing to throws wads of cash to rescue the multimillion-dollar corporations, but seems a little hesitant about helping the guy down the street who is struggling to pay his mortgage.

A lot of the government debt consolidation loans are unsecured. Unsecured debt consolidation loans are taken out without offering the lender any sort of collateral. Many times, these kinds of loans are used by consumers to pay off medical expenses or credit card debts.

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Normally, debt consolidation is undertaken to reduce and eliminate debt by paying off a high-interest unsecured loan, like credit card debt, with a low-interest secured loan like a home equity line of credit. In this way, people pay less interest because of the lower rates which helps them to pay off their debts quicker.

Government debt consolidation loans don’t always have collateral attached to them like traditional loans. Most of these are loans for personal use. These kinds of personal loans are one option for getting rid of debt for credit cards if they don’t own a home or any other kind of collateral.

Customers with a good history with their bank are often good candidates for these kinds of loans. One drawback, however, is that they often have higher interest rates since they are unsecured. Secured loans typically have a much better interest rate.

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The question is why isn’t Uncle Sam stepping in with more favorable terms for government debt consolidation loans? If they’re willing to help out GM and AIG, then they should be willing to help out my buddy down the street.

It could be that folks just need to incorporate themselves using only initials for their business names before filling out the loan application. It might even be helpful to take a company-paid vacation, throw an elaborate shindig at a resort and give everyone, including yourself, a huge bonus on the money they loan to you. Who know?

The truth is, government debt consolidation loans can be a great option for a lot of people to escape an unmanageable financial situation. The problem is, however, that too many people end up in the same circumstances within a few years unless they learn how to manage their finances. Financial education, not borrowing more money, is the real answer to these kinds of problems.

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When used properly, government debt consolidation loans can be extremely beneficial for individuals dealing with excessive financial debt. These kinds of loans should not, however, be seen as the only or even the best route to follow. Government debt consolidation loans should only be applied in the way in which they were designed to be used.

For more information about government debt consolidation loans, visit

About the Author:
Author Dean Byler is dedicated to just about everything dealing with finances and how to manage them. Learn more about
Government Debt Consolidation Loans at his blog which deals with
Credit Card Debt and other financial matters.

Written by Dean Byler –

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