Saturday 12 October 2013

Easy Debt Consolidation Strategies You Can't Go On Without

By Eddie Reed


If you have a lot of debt and are always getting calls about it then you may think that debt consolidation is a great idea. You can't deal with your debt overnight, though. Getting out of debt takes time, patience, organization and work. The following article offers many great tips if you're thinking about going the debt consolidation route.

Take the time to educate yourself and make an informed decision about choosing a debt consolidation program. You need to deal with your debts today, but you need a company which will continue to work with you into the future. You want a company that also offers financial education to help steer you away from this bad debt situations in the future.

Don't necessarily trust just any non-profit debt consolidation company when you're researching your different options. Many predatory debt consolidators or predatory lenders will hide behind a nonprofit persona but may give you many expensive reasons to regret working with them. Call your local Better Business Bureau to check out the company.

Make it known to creditors if you use debt consolidation. Some creditors will work with you to lower your interest or adjust payments by using an business accounting software as necessary. Your creditors may not be aware that you are trying to work with someone to resolve your debt. They can often lower an interest rate, forgive excessive fees or extend the time of your payoff date.

Make sure you don't borrow money from a company you haven't researched. A loan shark will take advantage of you. If you decide to borrow money to consolidate your debt, look for a loan provider who has an excellent reputation and make sure their interest rate is reasonable in comparison to what creditors are charging you.

Use a loan to consolidate outstanding debts efficiently. Negotiate with each of your creditors to resolve your debt to them via one large payment. A lot of creditors are going to allow you to pay off 70 percent of your balance all at once. Doing so will not harm your credit score and may actually help it.

You can get a loan taken out so you can pay off your current debts. Then you'll be able to speak with your creditors so you can see if they're able to settle with you. A lot of creditors are going to allow you to pay off 70 percent of your balance all at once. This will help your overall credit score, rather than harm it.

Find out if the debt consolidators you're using are certified counselors. Consult the NFCC to find companies that use certified counselors. Then you'll feel confident that you have chosen the right agency to help you with your financial needs.

You might access your retirement funds to repay high interest debts. Only do this if you can afford to pay it back within five years. If you don't, you will pay huge fees.

See if the folks who work at the debt consolidation company hold counselor certifications. The National Foundation for Credit Counseling is a great place to check first. Then you'll feel confident that you have chosen the right agency to help you with your financial needs.

Even if you are given a longer term for repayment of a consolidation loan, aim to get it all paid off within five years. A five year plan gives you enough time to pay the debt off, but a longer plan would be a lot more expensive because of the interest adding up.

You are now prepared to go ahead and get moving towards the right plan for debt consolidation. The article you just read should help you make the right decision. You don't need to be overwhelmed by debt! Get the help you need today by finding a good company offering debt consolidation.




About the Author:



No comments:

Post a Comment