Debt consolidation - The essentials

[ Bookmark this page! ] [ get HTML Version ]

Debt relief - Why most detb consolidation programs fail
Debt consolidation, equity loans, credit counseling, debt management plans, even Chapter 13 bankruptcy - it doesn't matter which of these debt programs you're talking about. They all suffer from one fatal flaw, the number one problem that causes most people to fail at eliminating their debts through these techniques. Can you guess the problem? It's probably not what you're thinking. It'... Read debt consolidation article



Personal Debt Reduction information and tips
Personal debt reduction practices, the steps people take to relieve the debt in their lives and to become more financially free, are a hot topic among financial circles. American spending habits are producing more people who are deeper in debt rather than people trying to achieve financial freedom.

The amount of debt Americans go into each year is mounting as most people strive to keep ... Read debt consolidation article



Debt consolidation - The essentials
Many Americans are in debt, in fact most of them are to varying degrees. And, most want to get out of debt and choose debt consolidation programs as one option to help them reduce their monthly payment and get back on the path to debt repayment. However, despite the fact that many people really do want to consolidate their debt properly they end up going about it in the wrong way and unfortunately end up with worse credit and debt problems than when they started. So, if you are in debt and want to consolidate, then consider the following debt consolidation don'ts before you choose a route.

Debt Consolidation Don't #1 For Profit Credit Counseling Most of the credit counselors and debt management companies out there are for profit, meaning they want to make an income off of their services. They claim to help you consolidate your debts and all you have to do is send a monthly payment and they will distribute it to all of your accounts until your bills are completely paid off. However, these companies require a fee for all of their hard work and in addition to this the majority of people do not even qualify for these programs. So, if you want to consolidate your debt you should consider all other options instead of this one.

Debt Consolidation Don't #2 Lower Interest Rates Are Out There If you are interested in consolidating your debts by finding an ultra low rate interest loan, you will more than likely end up paying a higher interest rate than the average advertised rates out there. The reason for this is that interest rates just don't vary that much, and if you see a company offering super low rates there is something else going on. So, be smart and realize to begin with that most banks and lending institutions have very similar interest rates and don't get tricked into something by falling for false advertising.

Debt Consolidation Don't #3 Reduce Your Payments By Half There are many debt consolidation agencies out there in the form of credit counselors and debt management firms that claim to reduce your monthly payments by half. This is tricky advertising as these companies are actually able to accomplish something like this a very, very small percentage of the time. More than 99% of the individuals using their services may indeed see a small interest rate change, but a reduction of payments by half is simply a dream of many. Don't go to a consolidation firm hoping for this because you will likely be disappointed, and many times using these services can hurt your credit a little bit as well.

Debt Consolidation Don't #4 Some Debt Management Programs Offer Better Rates If you are looking for a debt management program that will negotiate your monthly payments lower and think you have found a company to do so then you are being misled. Debt management programs and credit counselors do not negotiate how much you have to pay because you must pay back your debt. They simply help you make payments to each creditor every month and they also work with creditors to work with you on your repayment options, but forgiving debt is not going to happen. Sometimes, these programs will work on debt settlements, but don't fall for this if you really want to save your credit and pay your debt off.

Debt Consolidation Don't #5 Debt Settlement is a Great Option Many individuals believe they can enter a debt settlement program and simply pay off a fraction of what they owe and get out of debt faster. However, the debt settlement option is the worst way to go because you will severely hurt your credit and end up being the victim yet again. Instead, work on making your payments, talk to your creditors, and try to work out a payment plan beneficial to all parties. If you stay in touch with your creditors they are more likely to work with you than if you never return phone calls or respond to their letters.

Debt Consolidation Don't #6 You Can't Get Out of Debt Alone Many people believe they cannot consolidate their debt on their own but need third party help. This is not the case at all because you can do it all on your own if you know what to do and what to ask for. First of all, consider getting a home equity loan and consolidating your debts that way or else calling all of your creditors and asking for their reduced interest rates for individuals having tough times. You can reduce your debt on your own, and frequently it is the best way to go, you just have to get out there and do it.

Debt Consolidation Don't #7 Debt Consolidation Saves Money Sometimes debt consolidation saves you money, and sometimes it does not. You need to sit down with your calculator and the amount of money you have coming in each month as well as going out. Then run the numbers with your debt consolidation options, if you aren't saving at least 5-10 % then it's not worth the risk.

Many companies on the market today prey on individuals with bad credit or who are overburdened with credit and instead of really helping them are just interested in making money off of them. Be smart and watch out for these types of companies that prey on the indebted. If you are in debt and want to get out don't fall victim to these debt consolidation traps that will end you up in a mountain of debt worse than when you started. Instead, work on paying off your debt and talking to your creditors and before you know it you will be out of debt all on your own. Then, when you are finally out of debt work on staying that way by living within your means instead of beyond them and you will certainly enjoy the freedom of being debt free.

Jeff Dragt runs a variety of debt related websites and wrote this article to help people understand all the options when it comes to debt consolidation. For a free quote please visit. http://www.eliminatecreditcarddebtonline.com

What do you want to do?
Bookmark this page before you lose it
Search this site for FREE information
Help spread the word. E-mail this page to a friend

Debt counseling - Having problems with finances

Many individuals are experiencing difficulties meeting their financial obligations from month to month and the monthly payments are overwhelming and creating unnecessary stress and frustration. However, it is imperative that you find a way to meet your monthly obligations in order to maintain a positive credit rating and eliminate problems with credit collectors and losing your good credit standing. Of course, when you find yourself in this situation you have several options from managing your debt yourself to debt consolidation loans or debt consolidation services. However, before you take the route of applying for a loan or debt consolidation help there are a few things you should do.

First and foremost you need to sit down with your bills, your monthly income, and a calculator. Run the numbers and see how much money you have coming in and how much money is going out. If your bills outweigh your income then you may need outside help. However, you are most likely in the same boat as most and have enough income to meet your obligations but are spending money in places you don't realize which causes financial hardship. For example, if you earn $2500 per month after taxes and your rent or mortgage is $800, your car $350, power $120, credit cards $200, groceries $300 and gasoline $200 then you are spending $1970 each month. Of course, you may have other expenses that need to be included like childcare, cable TV and Internet, and the like or you may have less expenses. The point is to sit down and evaluate exactly how much money you have coming in and going out and to pinpoint exactly where money is being spent.

If you buy a flavored coffee every day on your way to work then you are basically spending an extra $100 per month on coffee that could easily be redirected to your monthly bills. Or, perhaps you like to eat out for every meal. Stop this and you will save significantly as well. Always make a list of things you need when you go to the grocery store and clip coupons. This will likely save you $50-$100 per month as well. Another tip is to save on electricity bills by keeping the thermostat at a conservative temperature. If it is too hot then open some windows, if it is too cold then put an extra comforter on the bed.

As far as gas expenditures go you can always car pool and save a lot of money by doing this. If your mortgage/rent or car payment is too expensive and you can't seem to make the payments then consider refinancing, or downgrading to a smaller home or less expensive car. All of these options will help you save a significant amount of money in a hurry as well as help you eliminate your debt by meeting your monthly obligations. However, if you find yourself with your monthly bills significantly outweighing your monthly income then there are options. You may consider a consolidation loan or else you might prefer to use the services of debt consolidation services or credit counselors.

A debt consolidation loan will help you because you can receive the loan and immediately pay off all of your monthly obligations. Of course, you will still have to make a monthly payment for the debt consolidation loan although it should be considerably lower than the sum of all of the other debts you were paying. The major benefit of this option is you decrease your stress and anxiety of feeling gobbled up by debt by taking care of all of your obligations and leaving only one monthly payment. However, the drawbacks are that you must have good credit to qualify for one of these loans; you may risk losing your home if you cannot pay your monthly mortgage, and you may become overextended again because you have a false sense of security that your debt is taken care of. Before choosing this option be sure you are fully educated on the benefits and drawbacks and any risks you may experience because of it.

Another option available to you when you cannot meet your monthly obligations includes using debt consolidation services or else credit counseling services. These services have considerable benefits because they allow you to immediately reduce your monthly payments which results in some serious financial relief for you. Also, these services frequently are able to obtain lower interest rates and fees associated with your credit accounts as well, which is realized in a smaller amount of debt you are required to pay. The drawback to debt consolidation services is only about 33% of people actually qualify for these services. Another drawback is you are not able to use your credit while you are working with a debt consolidation agency and your credit rating may be negatively impacted as well.

When faced with a credit situation where you are completely over your head and feel as if you have nowhere to turn then you should consider a debt consolidation loan or debt consolidation services. You may or may not qualify for these services, but if you do it is a great way to help you pay off your debts immediately and realize relief while restructuring your debt and disciplining yourself to pay it off. Of course, these options should only be considered once you have evaluated your true financial standing by evaluating your income and monthly bills. Most likely you will be able to manage your bills on your own with some good old fashioned discipline and budgeting and simply cutting back and avoiding those consumer items that are simply unnecessary. You should not live beyond your means and definitely should not seek a debt consolidation loan or use debt consolidation services to help you do so.


Top rated articles for debt consolidation

1. Debt consolidation - They found a fortune on the internet
It's exciting when people burdened with debt find a solution. Bill and Shona (real names changed for privacy) were up to their ears in financial problems when they decided on an unusual str... Read debt consolidation article

2. Eight Simple Ways to Consolidate Debt
Next to winning the lottery, a debt consolidation loan is a debtor's dream. With one monthly payment and a fixed monthly payment schedule, you can actually see an end to those monthly payments.
Read debt consolidation article

3. Debt consolidation services - Things to watch out for with debt counseling companies
Debt consolidation services can provide a valuable service by lowering your interest rate with creditors, enabling you to pay off your unsecured loans and bills in a short period. However, there are c... Read debt consolidation article

4. Debt consolidation - How to REVERSE Your Debts
I hope you read Part 1 which gives a basic introduction to manipulating your debt to your own advantage in order to clear it quickly.

But you want different results from your life from now ... Read debt consolidation article

5. Best Assistance For Debt Problems
Life is a game with money. It has the power to make one rich and make one poor. It is the soul foundation for one's happiness and sorrow. Moreover, truth keeps silent when money speaks as it is the wi... Read debt consolidation article

6. Consolidate your credit card debt
With the popularity of plastic money these days, credit cards are gaining immense importance. With growing usage of credit card the number of people in debt and the amount of debt for each of them is ... Read debt consolidation article

7. Student Loan Consolidation Plans
With tuition increasing at a rate greater than the cost of living, college students are depending more and more on student loans to help with the costs of higher education. Over the course of four or ... Read debt consolidation article

8. Debt Consolidation - A popular trend
According to the Bank of England, the amount of money owed by consumers in the UK has edged closer to the symbolic £1 trillion mark. As long as figures such as these keep getting reported, the debt co... Read debt consolidation article

9. Debt Consolidation Home Equity Loans - Lower Bills
Many lenders offer debt consolidation personal loans. Yet, getting approved for these types of loans is not an easy task. For starters, banks and credit unions require applicants to have a high credit... Read debt consolidation article

10. Debt Consolidation Solutions
Did you know the average debt per American household is over $9,000? If not managed carefully, even smaller amounts of debt can rapidly spin out of control. If you only make minimum payments on credit... Read debt consolidation article

1. Online Debt Management and Credit Debt Management Solutions
2. Debt Management Consultants
3. Debt Counseling and Debt Relief
4. How You Can Negotiate Debt Settlements
5. Debt Problems - Dealing with Debt
6. Debt help and free advice
7. Getting out of debt - Making the commitment
8. Debt Consolidation Services
9. Credit Card Debt Elimination
10. Debt Consolidation Service

Debt consolidation, debt counseling and debt management in Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi,



Debt consolidation - The essentials
Debt consolidation, debt counseling and debt management services in Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania,

Debt management, debt counseling and debt consolidation in Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington DC, West Virginia, Wisconsin and Wyoming.

Copyright by Ameri Debt Services = 2005 Privacy Policy Debt consolidation, debt counseling and debt management, free tips, help, services and information in USA, UK, Canada and Austrilia.