San Diego, CA, October 01, 2009 --(PR.com
)-- Fidelity Debt Solutions, a debt settlement company headquartered in Southern California, has issued a cautionary statement about credit consumers looking to consolidate their credit card debt. With more and more Americans struggling to keep up with their payments, many are resorting to debt consolidation plans or borrowing from one credit card to pay another. Fidelity Debt Solutions warns against such tactics, which may potentially make matters worse for consumers in the long run.
“Consolidating all your debt into one monthly bill may seem like a great idea, but we urge consumers to be careful," said TJ Belfanti, chief operating officer for Fidelity Debt Solutions.
“In all too many cases, we see individuals ending up with higher monthly payments due to higher APRs and lack of discipline when credit becomes available on the old cards after the consolidation process,” he said.
Many debt consolidation programs also involve second mortgages or home equity loans, when individuals put up their homes as collateral. Fidelity Debt Solutions says this strategy can be dangerous because consumers are giving up unsecured debt for secured debt and can potentially lose their homes for non-payment.
If one does feel a consolidation loan is necessary, Fidelity Debt Solutions advises credit card consumers to close out their old accounts after the consolidation takes place to avoid using the cards again. Belfanti noted that many times, those who fall behind again after a consolidation end up paying off one line of credit with another.
“You are essentially robbing Peter to pay Paul,” he said. “It’s a shell game that eventually catches up with people.”
Fidelity Debt Solutions offers consultation and multiple programs for consumers in such situations and works with those who are struggling to keep up with their credit card payments in the current economic downturn.
For more information on Fidelity Debt Solutions, visit http://www.fidelitydebtsolutions.org or call 1-888-241-2416.
About Fidelity Debt Solutions
Based in San Diego, California, Fidelity Debt Solutions works with consumers who are or will be behind on credit card payments, have $15,000 or more in unsecured debt and have some form of income to continue making payments. Fidelity Debt Solutions has obtained third-party BSI Accreditation, which gives consumers confidence in knowing they are dealing with an accredited and legitimate debt settlement company and that best business practices are being implemented.