Advice on Consolidation of Debt, First Demystify, Then Do It Yourself!

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Advice on consolidation of debt is available for those who need it. But first understand that this is the process of putting all bills like medical, credit card, personal loans and payday loans into one with lower rate of interest and lower monthly payment.

There will be no new loans as this is the process of negotiating with all the lenders for a lower interest rate and payments. On the other hand, debt management programs may have more benefit but this process involves a debt consolidator as well.

The good debt consolidators will only recommend a monthly payment that the debtor can afford. Usually they are certified credit counselors and some are from non profit consolidation company. They will negotiate with your lenders to lower the interest rate and payment plus waive some fees.

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Here are some of the advantages of legitimate debt plans:

  • Reducing the monthly payment due to lower interest rate
  • Lowering the interest rates through the process of negotiation
  • Removing or reducing late penalty fees that you probably incurred when you were late paying your bills.
  • Stopping harassing collection calls as soon as you start the consolidation payments
  • Reducing the debt balance faster, thus becoming debt free sooner rather than later.
  • Improving your credit because once you make the monthly payment, this appears on your credit report
  • Paying monthly only once instead of multiple times before the consolidation
  • Debt counseling is free

Other good things the good debt consolidators will do for you is to provide a good financial education that will put you on firmer grounds. You will learn to create and use a family budget as well as how to handle your bills. You will also learn how to save funds for a rainy day or retirement and how to remain debt free. This will be all good advice on consolidation of debt.

Find a good debt consolidator you can trust who will offer free counseling even if you don't belong to any of the plans offered. He or she will point you to the financial seminars that will teach you everything you need to get a handle on your financial responsibility. These seminars are free for everyone to attend.

Knowing how to solve debt problems will help ease the burden somewhat. While debt consolidation may be a good way to get out of debt, there are six other ways that I would like you to know so you can make an informed decision from this advice on consolidation of debt. Here they are:

  • You can become debt free on your own by evaluating your financial situation and mapping out a self repayment plan according to your budget without any professional help.
  • You can use debt management by depositing money with a credit counseling service who will pay off your debts according to the negotiated plans with the creditors.
  • You can use any debt settlement company who will negotiate with your creditors that could lower your debt by 40 to 60%.
  • You can secure a debt consolidation loan and use this to consolidate all your debts into a single monthly payment plan.
  • You can use bill consolidation whereby a bill consolidation company will negotiate to lower the interest rates.
  • Bankruptcy is my least favorite way of paying off the debt as it will take years to get your credit history back

You will find that debt consolidation may be the best option for you even with a bad credit. In fact it is good for those who owe a lot of money and do not want to be bothered by the collectors. Depending on how much is your total debt, this may even save you thousands of dollars.

You can ask all the questions you want to ask for as long as you want and as long as it takes for you to learn all there is to learn. You can start saving money in the process and will be happier in the long run. These are all yours after getting the advice on consolidation of debt.

Advice Consolidation Debt, Know the Pros and Cons

Advice consolidation debt that can be given to you is to learn all you can about the pros and cons of the different available options. For example one of the options is home equity loans, otherwise known as second mortgages.

The advantages of these are that the interest rates are lower so the monthly payment is lower too. In addition, the interest may be deductible. Know though that the interest is higher than the first mortgage and that you have to pay this off when you sell your home.


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