Learn More Before Consolidating Your DebtWhat exactly is Debt Consolidation?Debt consolidation involves taking high-interest balances on a multitude of credit card bills and combining them into a single balance, allowing you to lump all of your payments into one low manageable monthly payment. Debt consolidation works to eliminate your late fees and reduce your
interest rates to make that one monthly payment lower than ever. Millions try to find way out of debt crisis. As many as one in seven adults has turned to debt consolidation in the past three years to try to get their borrowing under control. Debt consolidation enables you to solve the underlying problems of high debt without taking drastic steps such as declaring bankruptcy.Debt consolidation is a booming business mainly because so many people are finally coming to the realization that dealing with debt is much easier and less stressful that most common people think. Debt consolidation programs are viewed as positive by banks and creditors, and will reduce your debt immediately by lowering your interest rates and eliminating late fees. If you have more than three credit statements, a debt consolidation service can help you organize your bills and limit your paperwork to just one single monthly payment.Unsecured DebtMost people who have gotten themselves in too deep do not have the credit score to get an unsecured loan, and the interest rates are generally higher than a loan secured by collateral. Many types of personal loans are unsecured loans, meaning that they do not have collateral backing them, but rather are based on the borrower’s signed, formal promise to repay. Store credit cards and secured credit cards are a good way to build or reestablish credit, and the next step from there is a unsecured card with a low credit limit, typically ranging between $350 and $500.
Debt Consolidation Facts & Credit Counseling Truths
Top Three Debt Consolidation Services
Debt consolidation is a hot topic among people who are looking to repair their credit history and reduce their monthly bills. Debt consolidation involves combining debts from credit cards, lines of credit and other sources into one large lump sum with a low interest rate.Debt consolidation services are popping up all over the country and many operate solely through the Internet. After some careful research, I’ve come up with the top three debt consolidation services.
Debt Consolidation Service #1: Credit Solutions Credit Solutions has been covered extensively by NBC and MSNBC as an excellent method of debt consolidation. A major reason that this service is so popular lies with the fact that the credit counselors understand how difficult admitting one’s debt can be. They take a tactful and friendly approach to helping their customers resolve debt issues. In 98% of cases, Credit Solutions is able to help their customers consolidate their debt in less than 36 months, which is quite an accomplishment for any one service to provide. They call themselves a “Debt Settlement Program” versus a debt consolidation service because they don’t just resolve your debt into one large sum; they also negotiate with your creditors to avoid having to secure your debt with equity in your home or other property. Credit Solutions can lower your debt by 40% – 60% through their conversations with your creditors, and they don’t perform credit checks or advocate bankruptcy. You can learn more about this debt consolidation service by visiting www.creditsolutions.com or by calling their toll-free number at 800.353.7630. Debt Consolidation Service #2: Money Management InternationalMoney Management International partners with Consumer Credit Counseling Services (CCCS) to offer exceptional credit counseling and 24/7 support. Their experienced counselors can help you develop a debt management plan that will assist you in lowering all of your debt and consolidating it into one convenient monthly payment.
Christian Debt Consolidation: Sinner Beware
What to Watch Out for with Christian Debt ConsolidationChristian debt consolidation shares in the problems endemic in an industry that, as recently as ten years ago provided a real and valuable service. The problems with these businesses has gotten so bad that the Credit Info Center advises against using any debt consolidation service and
especially any so called Christian debt consolidation service. This is not an anti Christian bias but a warning against using a service that uses the word “Christian” to gain people’s trust.The IRS is auditing the top 50 debt consolidation agencies and the Better Business Bureau reported 1480 complaints in 2002 as compared to 261 in 1998. According to the Consumer Federation of America, the questionable practices of Christian and other debt consolidation services include the following 1 Deceptively claim fees are voluntary and do not adequately disclose fees 2 Excessive costs—some agencies charge as much as a full month’s consolidated debts just to set up an account 3 Abuse of non-—profit status. Christian debt consolidation, along with its secular counterparts functions like a for-profit business with aggressive advertising, close ties to for profit firms, getting high revenues and paying high executives much more than that paid to the average non-profit executive. A new tactic used by Christian debt consolidation services is to require the consumer to buy their counseling and educational services, which are supposed to be Bible- based financial counseling. There are a few honest agencies out there and there are still millions of Americans who need debt consolidation services and financial counseling. A basic minimum requirement for using a service should include approval by the Better Business Bureau. There are several red flags to look out for: