Learn How to Consolidate Debt safely while identifying and avoiding scams and questionable businesses.
The truth about how to consolidate debt
Everyone has heard these claims on TV ads, or the radio, but are these possible realities? Or just good marketing? The answer is that it depends upon the company you choose to consolidate debt with. There are many debt consolidation companies out there, and not all of them hold to the same standards of quality. Even companies that are ISO 9001:2001 certified can vary widely in the level of service they provide. This site will attempt to give some background information on how debt consolidation works, and what all of this jargon means.
Stay informed and achieve success as a result!
Informed consumers can consolidate credit card debt safely. Through this site, you will learn how to tell whether the monthly payment quoted to you is realistic, or whether you are being fed the “bait-and-switch” technique. This is when a salesperson (posing as a “counselor”) attempts to sign you up for a payment plan that is less than 1.75% of your total outstanding credit card balance. Then, once you have made your initial payment, within the first three months, you find your minimum monthly payment drastically increased by as much as 30 or 40%! In some cases, you will still be saving money compared to what you can do on your own, but at this point, you will wonder if maybe some other debt consolidation company could have served you better.
Separate fact from fiction when you consolidate debt
Most debt consolidation programs have a 60-month term. Consumers should beware of non-profit companies claiming to get them out of debt in smaller timeframes. Sometimes this will be possible to achieve through a “debt settlement” payment, where a much larger lump sum payment is made to retire some of the debt. However, this may reflect negatively on your credit report. The moral of this story is to expect your debt consolidation program to take time. It is much better to find a realistic 60-month program than to buy into a 20-month dream and wake up with a nightmare payment ten times what you expected. Credit card debt is no joke.
How to consolidate debt when you are overwhelmed
Are you overwhelmed by your debt? Is there one source of debt that drives you crazy? Some consumers have a tough time figuring out the credit card racket – after all, once your credit score begins plummeting, you’ll be vulnerable to usury lenders who are more interested in making a profit than keeping you happy as a client. Even the best and the brightest may take a few wrong turns, making bad decisions that will have a negative impact on credit. Is your source of frustration something altogether different? For instance, the origin of discomfort for many can be traced back to student loan debt. There are ample debt relief agencies available. These hold the keys to debt management.
Student loan debt – the bane of our collective existence.
However, there are ways to make the residue of your scholarly years a little kinder and gentler. Take advantage of one of the federally-guaranteed consolidation packages. Consolidate student loans and receive a reduced, fixed rate for the life of repayment. The bargain is to be had in locking in a fixed rate, vs. the alternative – the variable.
You might want to learn about Credit Card debt consolidation.