they offer nothing that you can not do for yourself. . . . bigtime ripoff artists. . . even the legit ones. . .
vk2peq said on 22-12-2009
More debt.
Pay off what you owe.
The CPA Guy said on 22-12-2009
Sometimes, people have a lot of different creditors to pay. For example, multiple credit cards, car loans, lines of credit, etc. Debt consolidation companies will pay off these creditors and consolidate it all into one bill, sometimes lowering your payments once everything is consolidated.
This can be a useful service for those who are disciplined enough not to rack up more debt once they do a consolidation of existing debt.
Kaska said on 22-12-2009
They can sometimes get a better interest rate to pay off the debt quicker but only if the creditor is willing to negotiate.
If you are not completely over your head you can get out of debt on your own.
Start with your small bills first. Pay that bill as much as possible while paying the larger bills the minimum payment. As they are paid off add that payment to the next bill until it is paid off. And so on.
Your next option is bankruptcy if that doesn’t help.
Wayne Z said on 22-12-2009
Most of them offer you an outright SCAM to relieve you of more of your money.
Maria said on 22-12-2009
debt consolidation companies are offering debt consolidation solution, debt consolidation loans to get your financial situation in track.
I would be careful about debt consolidation. Most organizations sell it like a product and once the sale is complete, their job is done.
I would consider developing a good budget first, and work on snowballing your debt (debt stacking). You can read about that in our blog if you’d like, and we have a free budget tool.
If you do decide on debt consolidation choose a company that will not only consolidate and save you money on monthly payments, but will help you put together a game plan to help you pay it off faster and stay out of debt. This will negate the need to refinance in the future.
What they will do,
Gather information about income, debts. . .
They’ll do a credit check
They’ll assess the equity you have in your home
If you have equity, the lowest interest rate option they’ll choose it do do a home equity loan. Because it’s secured against your house, the rate will be lower.
If you don’t have equity, they may offer you a personal loan, however you’ll have to have pretty good credit and income (ability to pay back the loan). Also, because it’s not secured against the loan, they’ll reduce their risk by offering a higher interest rate.
All in all, remember to insist on a written plan to eliminate your debt after the consolidation.
Best of luck
Mia Jacob said on 22-12-2009
Debt Consolidation Loan is one of the most common solutions people think of when they fall into financial difficulties.
Debt consolidation loans transfer debt from one place to another. While this may sound good, since many times it can appear to lower your monthly payments, a debt consolidation loan will not reduce the amount you owe. You will still pay back 100% of the debt consolidation loan, plus interest. The interest rate is sometimes lower than before, but this is because debt consolidation loans are usually secured loans that cannot be lowered or negotiated. Once you sign up for a debt consolidation loan, you have just gone from an unsecured debt to a secured debt and have put your personal assets (e. g. your car or home) at risk. At that point if you can’t pay your bills your creditors can come and take your personal property – thus creating a bigger problem than you had to begin with.
Debt settlement is a program designed for consumers with serious debt problems who are unable to maintain payment obligations and are considering bankruptcy or credit counseling.
Debt settlement is the process in which you stop paying your creditors for some time and save that money so that you can then negotiate with them to settle the debt for a lesser amount. So it
is better to seek help from any reputed debt settlement company. Such companies can handle it properly as they are experts in that field.
overall they’re ripoffs.
they offer nothing that you can not do for yourself. . . . bigtime ripoff artists. . . even the legit ones. . .
More debt.
Pay off what you owe.
Sometimes, people have a lot of different creditors to pay. For example, multiple credit cards, car loans, lines of credit, etc. Debt consolidation companies will pay off these creditors and consolidate it all into one bill, sometimes lowering your payments once everything is consolidated.
This can be a useful service for those who are disciplined enough not to rack up more debt once they do a consolidation of existing debt.
They can sometimes get a better interest rate to pay off the debt quicker but only if the creditor is willing to negotiate.
If you are not completely over your head you can get out of debt on your own.
Start with your small bills first. Pay that bill as much as possible while paying the larger bills the minimum payment. As they are paid off add that payment to the next bill until it is paid off. And so on.
Your next option is bankruptcy if that doesn’t help.
Most of them offer you an outright SCAM to relieve you of more of your money.
debt consolidation companies are offering debt consolidation solution, debt consolidation loans to get your financial situation in track.
Have you ever tried http://www. 1st-debt. com
I would be careful about debt consolidation. Most organizations sell it like a product and once the sale is complete, their job is done.
I would consider developing a good budget first, and work on snowballing your debt (debt stacking). You can read about that in our blog if you’d like, and we have a free budget tool.
If you do decide on debt consolidation choose a company that will not only consolidate and save you money on monthly payments, but will help you put together a game plan to help you pay it off faster and stay out of debt. This will negate the need to refinance in the future.
What they will do,
Gather information about income, debts. . .
They’ll do a credit check
They’ll assess the equity you have in your home
If you have equity, the lowest interest rate option they’ll choose it do do a home equity loan. Because it’s secured against your house, the rate will be lower.
If you don’t have equity, they may offer you a personal loan, however you’ll have to have pretty good credit and income (ability to pay back the loan). Also, because it’s not secured against the loan, they’ll reduce their risk by offering a higher interest rate.
All in all, remember to insist on a written plan to eliminate your debt after the consolidation.
Best of luck
Debt Consolidation Loan is one of the most common solutions people think of when they fall into financial difficulties.
Debt consolidation loans transfer debt from one place to another. While this may sound good, since many times it can appear to lower your monthly payments, a debt consolidation loan will not reduce the amount you owe. You will still pay back 100% of the debt consolidation loan, plus interest. The interest rate is sometimes lower than before, but this is because debt consolidation loans are usually secured loans that cannot be lowered or negotiated. Once you sign up for a debt consolidation loan, you have just gone from an unsecured debt to a secured debt and have put your personal assets (e. g. your car or home) at risk. At that point if you can’t pay your bills your creditors can come and take your personal property – thus creating a bigger problem than you had to begin with.
Debt settlement is a program designed for consumers with serious debt problems who are unable to maintain payment obligations and are considering bankruptcy or credit counseling.
Debt settlement is the process in which you stop paying your creditors for some time and save that money so that you can then negotiate with them to settle the debt for a lesser amount. So it
is better to seek help from any reputed debt settlement company. Such companies can handle it properly as they are experts in that field.