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Top Consolidate
Credit Card Debt Links
Debt Consolidation Credit
Counseling
Overwhelmed by credit card debt? If so, a debt consolidation loan
may be answer. A debt consolidation loan does "not" hurt
your credit score. In fact, it can actually help your overall
credit score. Debt Consolidation for People with Bad Credit
A debt consolidation loan affords
you the opportunity to restructure your debt. Thus, saving
thousands of dollars while you are gaining control of your debt. A
nice feature is you only have to make "one" payment a
month.
What is Debt Consolidation?
Debt consolidation is the process by which your current debt is
negotiated with all of your creditors to obtain the lowest monthly
financial obligation needed to satisfy all of your current
accounts.
With a debt consolidation loan,
you simply make one "lump sum" monthly payment. This
payment is then forwarded to all of your creditors (often at a
greatly reduced rate, sometimes as high as 50%).
One of the most important
benefits of a debt consolidation loan is that it can afford a
fresh start to a more healthy financial future. You can eliminate
stress while taking back control of your life.
Debt Consolidation vs. Debt
Settlement
Debt settlement programs negotiate a payment amount with your
creditors that will satisfy your creditors at the best rate
possible for you. Debt settlement services can quickly eliminate
your debt and financial stress.
These programs can eliminate your
debt in as little as 12, 24, or 36 months. Harassing phone calls
from creditors will disappear, as well as the high interest rates
you previously paid. Not only are late charges and over limit fees
eliminated, your monthly payment will drastically drop.
However, keep in mind with a debt
settlement program all information, including settlements and
accounts paid in full, are reported to the credit bureaus by your
creditors upon settlement. That is, unless you pay the debt in
full.
Credit Counseling Service -
Warning
You can usually negotiate a
reduced payment of up to 70% less with a lump sum payment. This is
the best method of getting out of debt. If you can't afford to pay
off your credit card debt, installment debt...then contact the
creditors directly or through a credit counseling service. Be
warned that all credit counselors aren't made equal! Do research
and ask a lot of questions before hiring them.
Many people have lost money and
ended up having to file bankruptcy because a debt consolidation
company was not legitimate. Make sure you know what you are
getting into and understand your contract completely.
You should research different
companies in order to find the most reputable one.
The first thing you should do is
check with the Better Business Bureau that the company doesn't
have any complaints on record. Ask family, friends and colleagues
to see if they have used similar companies or if they know of a
good one. The National Credit Counseling Service, http://www.nfcc.org/
is a non-profit organization that has been providing credit
counseling since 1954 and is member supported. This means they
work for the creditors so keep that in mind when talking with
them.
If you want to do repair your
credit yourself, and it isn't that hard, check out "Bad
Credit: Absolute Truth The Credit Companies Don't Want You To
Know".
Be aware of the following:
If you are having them pay your
payments for you it will show up on your credit report.
These programs usually lower your
credit score.
Being in debt does not
necessarily mean all is lost or that you will have to file
bankruptcy. The options listed above are just a few that can help
eliminate your financial stress. The main thing is to not give up.
Thousands of people have been in debt and gotten out of it.
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