Debt Consolidation Services And Information
By Brad Stroh
The Fundamentals of Available Debt Consolidation
Services
Owing large sums on your credit cards and other bills is a very stressful
situation. Every dime of your paycheck is allocated before you even cash
it, you have collection agencies calling you both at home and at work, and
you constantly have to worry about making ends meet. Worst of all, with the
incredibly high interest rates you're paying, it could conceivably take 15
years or more to pay off the amount you owe. But you could change all of
that right now by taking advantage of debt consolidation services.
Debt consolidation services are designed to help get you back on your feet
quickly. Although the specifics vary depending on the nature and extent of
your financial troubles as well as the debt settlement or credit counseling
company you sign up with, most debt consolidation services operate to get
you out of debt fast. The debt relief provider will review the details of
your financial picture and explain if, how, and where they can save you money.
If you like what you hear and if you agree to pay the fees they charge for
their debt consolidation services, the company will go to work on your case.
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If you choose a
debt settlement company, you may get negotiated settlements on your credit
card debts at significant savings to your current balances. Debt settlement
lets you lower your monthly payment (sometimes cutting payments in half),
get debt free fast, save up to half of what you owe, and avoid bankruptcy.
Sound too good to be true? Well, there is a trade-off in a debt settlement
program: your credit rating will take a hit, since you will be reported as
delinquent during the life of the program (average time is three years).
On the other hand, credit counseling doesn’t impact your credit score.
But beware, credit counseling will be listed on your credit report, and many
lenders do not like to see that you had to seek third party help for your
debts. The big benefit of credit counseling is reduced interest rates on
your debts… which lowers your monthly payments.
Another benefit you'll get from any debt consolidation service is the ability
to make a single payment each month to pay down all your bills, rather than
having to juggle ten or more payments on your own. This will be much more
convenient for you, and you'll always be right on top of your payment, rather
than worrying about whether you sent out all the bills on time.
that doing so will not negatively affect your credit
report.
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Many companies
that offer debt consolidation services can also help you get a loan to pay
off your balances. The loans can either be secured or unsecured. A secured
loan typically uses real estate as collateral, so you can only get this kind
if you own a home or other property. If you're a renter, you would have to
get an unsecured, or personal, loan. Since you wouldn't be putting up any
collateral for this loan, however, you can expect to pay higher interest
rates than on a secured loan.
As you can see, debt consolidation services provide you with a lot of options
to choose from. A good debt consultant can walk through all of your alternatives,
and help you select the solution that meets your financial goals. By taking
advantage of professional debt consolidation services, you'll be able to
regain control of your personal finances and end your money troubles for
good. |
| Brad Stroh is currently co-CEO of Freedom Financial
Network and Bills.com. If you would like
more of Brad’s articles,
please visit the Bills.com information on
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