Debt consolidation involves taking on new debt
to pay off your existing debt immediately. When a debt consolidation
program is put together in the right way, it can help you pay less
money and get out of debt faster than you would have done otherwise.
A big part of good debt consolidation is to make sure that you get
yourself a much lower interest rate on your new debt than you had on
all your other debts. Quick tips to debt consolidation -
1. Face to face: Free debt
consolidation counselors' talk directly with you, helping find ways
for you to pay off your debt while saving you money. Keeping this in
mind you can find the right solution for your needs.
2. Pay later: Remember,
while debt consolidation quotes may be free, the costs for these
services often aren't mentioned until the cash is practically in
hand. So one needs to be very careful while considering change in
debt hands.
3. Use home
equity: Consider debt consolidation by
getting online as well as offline quotes for a Home Equity Line of
Credit-which often features lower rates than other debts. Three top
strategies for debt consolidation: consolidate to a single
low-or-no-interest card, get a low-interest loan, or tap into home
equity.
4. Read the fine print:
The term "debt consolidation" may be used interchangeably by several
companies offering very, very different types of services and end
results. So it is recommended to choose carefully. Avoid collection
calls, liens and lawsuits by consulting a professional debt
reduction company; they can often eliminate debt for pennies on the
dollar.
5. Check certifications:
There are numerous mushrooming financial institutions touting debt
relief without verified accreditations. To help ensure you're
working with a reputable debt consolidation firm, search for one
certified by the National Institute for Financial Counseling
Education.
6. Proceed with caution:
Debt consolidation loans encourage tendencies already leading to
financial challenges. By taking on yet another creditor, you're
adding fuel to the fire. Be very sure of your repayment strategies
and capabilities before you take on this additional burden.
7. Last resort:
Considering signing up for a debt consolidation program only after a
certified credit counselor has spent time carefully reviewing your
financial situation.
8. Research firms: Check
out any company offering debt consolidation services with your local
consumer protection agency and the Better Business Bureau in the
company's location.
9. Get going: One primary
key to consolidating debt is to have a clear plan of action for
making payments and reducing monthly interest charges. Unless you're
offered a compelling, lower interest rate for consolidating multiple
credit cards, the savings might not justify the effort and hassle.
10. Online Quotes: For the
fastest debt consolidation loans available, look to the Web. Online
lenders are well knows for providing the fastest debt consolidation
loans to people all over the United States. As long as you have all
of your debt information ready to provide them, these lenders can
take you from application to approval to disbursement in a matter of
days. Some reputable debt-settlement firms (search several online)
can often reduce your debt as much as 75% or more-without a credit
checks.