It is so easy to get into debt up to your eyeballs. Once you are in too deep it is hard to get yourself out. Sometimes people need a little help with the high interest debt. Getting a consolidation loan is the best way to eliminate the load. There are different ways to get a loan, some of which are very high interest. If you are interested in a debt consolidation quote, you can get them from many places. A free debt consolidation quote from different agencies is the easiest way to get the best loan for you.

How to Get a Free Quote

If you are looking to consolidate your high interest debt, then you may want to make sure that you compare the different loans that are available to you. There are lots of different companies that you can get free quotes from. Make sure that you look at the loans very carefully and do your research. You want to make sure that you get the best deal for you.

What to Look for in a Debt Consolidation Quote

There are few things that are very important to look for when you are shopping around for a debt consolidation quote. The first thing is to maker sure that you are getting a good interest rate. The interest rate should be lower than the rate of your currant debt. Make sure that you are getting a loan that is unsecured. If you do not want your home or car as collateral then make sure that you are applying for a loan that is unsecured. These loans may be at a slightly higher interest rate, but it will pay off in the end because you do not have the added stress of a second mortgage or car loan. If you are looking for either a secured or unsecured loan, then shop around and get the best interest rate you can get.

Where to Go to Get a Free Quote

There are plenty of companies that offer free quotes on loans to consolidate your debt. All you have to do is give them all your information, sometimes you can do this on the phone, or they may send you an application to fill out and send back. You can apply to more than one place and choose from the best quote.

You can also look online for a free quote. Many companies offer applications online and can give you an answer within a very short time. Online is also a great way to shop around because you can get all the information you need right there for your free quote.

Before you decide to cut up credit cards to help you get out of debt, you need to understand how it can affect your credit score. Find out what you need to know first on the Debt Smackdown website at http://www.debtsmackdown.com

Debt Consolidation FAQ:

Question: Whats a good loan for debt consolidation if you have bad credit?
I want to consolidate 1 personal loan, 2 CCs and an extra bill I want to get rid of into one loan…totals out to be about 4400 dollars. Whats a good loan if I have bad credit?

Answer: One of the biggest down falls that most of us have is the reliance on credit cards. Unlike spending real cash, when you charge it to a card you don’t feel the burn. So if you cannot control how much you spend on your card, then cut up your cards, leave them locked up at home, freeze them or bury them until you are out of debt.

Question: Is it true you can’t get any credit after debt consolidation until debt consolidation is over?
Is it really true, that’s terrible? Why would you even want to do it then if you can never get credit after that. I’m confused, please clarify.

Answer: Debt consolidation isn’t the problem, what matters is your recent payment record.

If you have a lot of late payments, or too much borrowed or other adverse items in your credit history , your credit rating will be lousy. It will only improve (gradually) as you keep your bills paid in time.

You can always get credit, even with a really bad credit rating. But the worse the history, the worse the terms will be — at the very worst, you may only qualify for a prepaid card (which is basically not credit at all). But, if you have just gone through a debt consolidation, chances are that you really shouldn’t be getting any new credit — take the time to build up your credit history.

Question: How do those debt consolidation 1-800 numbers work?
You hear it on the radio all the time.. “we can get rid of your debt in months!! not years!!”

Anyone know if this really works or is a scam or what kinda fees or what exactly do they do!?

Answer: Here’s how those programs work; Let’s say you have $10,000 worth of debt. Your MINIMUM monthly payments due monthly would be about $350. The first thing they do is change the billing account address and phone numbers on all your accounts to their info. Then they have you pay the consolidation company $450 a month. Then the consolidation company quits paying your bills. After 3-4 months you go to collection on all your debts. You don’t hear about it though, because all the phone calls and letters are going to the consolidation company. You can see this happening on your credit report though. The debt will say; “In credit management” on the report. After a couple more months they talk the collection agency into accepting a partial payment. So instead of owing $10,000, now you owe $4,000, with no due date. You continue to pay $450 until the collection agencies are satisfied, and the debt companies % based fee is collected. That’s it! Now you have no debt, and awful credit! (Worth it for a lot of people, because if your that bad with your debts, your credit is going to get wrecked eventually. You might as well save some money in the act.)

Question: Debt consolidation for collection accounts?
Can you seek consolidation if you only have collections in your history? That’s the only thing that’s hurting my credit. I don’t have any credit card debt or repo’s or anything like that. I have a lot of payday loans that went into default and they’re on my credit. Also once you go into default with a loan company and then pay them off are you eligible to reloan with them?

Answer: A word of advice: before you pay off those collections, try to negotiate with them that they will take all mention of the problems off all the credit bureaus. IF SO, GET IT IN WRITING. They want the cash, they are negotiable.

Question: Debt Consolidation Loans For Bad Credit?
Are there any debt consolidation loans or personal loans for non-home owners with bad credit? I’m currently on a debt management payment plan but I’d really like to take out one loan to pay off all my debt at once.

I haven’t been able to find any loans for this purpose.

Answer: If possible, find a new bank in your area willing to give you a personal loan. There are banks like that believe it or not that will give you a loan with no credit/poor credit. I received an unsecured loan before, but in most areas it is more difficult. You have to do some math. Consider how much debt you are in, how much you can afford to pay and what are your future lending needs. If your really behind on payments, just settle your debt and then make sure to build it back up after. Sooner you settle your debt, sooner you can recover.

Question: Are there any good debt consolidation service in Ontario, Canada that you recommend?

Answer: There is some good ones in Montreal and Toronto and they are non-profit. Go to google and in the search bar put credit counselling/Canada and they are there.

Question: Where can I find debt consolidation unsecured loan institutions?
I want to pay off a terribly high interest credit card I’ve had for many years. My wife missplaced the bill and now they defaulted my special interest rates to they’re maximum. This is after years of never missing or being late.

Answer: If it’s only one card you want to pay back, you do not need to consolidate. But try to get a new credit card, with a “0% interests fees for 6 months” entering promotion. Major finance companies are issuing these cards. Or perhaps call the company and explain your situation. Since you previously have never missed a payment they may be willing to give you a second chance.

Question: Anyone familiar with Oak View Law Group Debt Consolidation?
I am thinking of getting involved with Oak View Law Group to consolidate my debt. Does anyone have any information on these guys? Do they really work or are they a scam like so many others? In their information they say to stop paying my creditors immediately and let my accounts go default that way they can negotiate them.

Answer: I’d stay away from groups like this. They won’t make your situation better and more chances than not, make it much worse.
Settling accounts is a tricky subject and may or may not happen, it just depends on the creditor and how delinquent the account is. By just stopping payments and hoping for a cheap settlement, you’re leaving yourself wide open to a lawsuit. Not only that, your credit will suffer as well. Plus, you’re paying these guys to ruin your credit.

If you really want to try debt settlement anyway, then do it on your own. You don’t have to pay any company money to default on your cards and attempt settlements….you can do this yourself for free. Just be advised that this will be a stressful and unpredictable process (lots of “nice” phone calls from debt collectors) and risk of a lawsuit.

Are you burdened by numerous credit card bills, supplier invoices, electricity and medical bills, among many others? For people burdened with heavy interest rate payments for their debts, the solution comes in the form of debt consolidation. This is a program crafted by companies that specialize in this service for clients who want to simplify their debt payments. By doing so, their clients will have a better chance at eliminating their debts.

How It Works

When you have acquired many debts, keeping track of their individual repayment schedules can be tedious–not to mention that they can easily exhaust your monthly financial sources. And every time you miss out on your payment, the interest rates escalate.

By consolidating your debts, you simplify your repayment schemes and eliminate burdensome debts. Consolidation is a program that begins with taking out a loan to pay off the other loans. It can also be done by taking a secured loan, like a mortgage on a house, for example, to pay off a loan. By eliminating these other loans, the client secures a fixed or lowered interest rate.

A debt consolidation company can also buy the whole loan of the client at a discount when threats of bankruptcy are close. But while this may sound advantageous, the client must weigh this option carefully. It may affect his ability to discharge his debts in bankruptcy.

Free Consultation

Free yourself from debt worries and take on a more practical and simple repayment plan, using the services of a debt consolidation company. Most of these companies offer free assessments and consultations to get you started on a program. You do not need to get their services immediately if you are just exploring the possibilities. But knowing that you have a way out of your debts is a good first step to debt management.

Debt Consolidation Companies provides detailed information on Debt Consolidation Companies, Best Debt Consolidation Companies, Free Debt Consolidation Companies, Non Profit Debt Consolidation Companies and more. Debt Consolidation Companies is affiliated with Free Consolidation Debt Help.

Debt Consolidation FAQ:

Question: New homeowners need personal loan for debt consolidation and home improvements.
My husband and I closed on our first home on 8/31. Our loan was financed 100%. We are now looking to consolidate our credit and auto debt into one along with major home improvements that need to be done. They total $35k. Where is the best place to go to apply for a personal loan or line of credit for at least $60,000?

Answer: This might be difficult given the current situation in the credit market. No lender is going to be very excited about lending beyond 100% of the value of the asset. A personal loan is going to charge relatively high rates since it is not backed by an asset and is higher risk.

Question: How much debt should you have before considering debt consolidation?

Answer: The amount is not as important in deciding whether to consolidate. Rather, it can determine the types of consolidation to pursue.

Low amounts of less than $4,000 may be ideal for personal loans through banks and credit unions (not high priced finance companies). High amounts of $40,000 or more may be better served by home equity loans. Anything in between may need credit counseling.

Additionally, if you have poor credit, you may also be limited to credit counseling rather than loan options.

Question: How long does a debt consolidation loan stay on your credit report after you have paid it off?

Answer: 5-7 years depending on how long the creditor keeps reporting it. If it is a good tradeline with no lates you shouldn’t worry about it. If you had late payments during the life of the loan count on it being there for 7 years.

Question: What is the best route to go, Debt Consolidation Services or Credit Repair Services?
I am currently overseas and would like to fix my credit as soon as possible, but definitely do not have the time or the resources to contact my creditors. The internet is the only means possible right now and I would like to know if there is any services out that that stand out above the rest.

Answer: Neither. The best way to get out of debt is to cut up & cancel all but one credit card and swear you will only use it for an emergency. Then pay 10% of the one with the highest balance–next month pay 10% of the card that has the next highest balance and so on–all the while making at least the minimum payments on the others. If you will pay 5 days before the due date your outstanding balance reported to the credit bureau will be the lower amount after your payment is received instead of the balance before the payment. Just keep repeating that process until you get all of them paid off. It wont take as long as you think. And Your credit score will be improved dramatically.

Question: When getting a loan, if you say that you are getting it for debt consolidation, how does it affect you?
Does it give you a negative mark on your credit history?

Answer: Everything affects your credit in some way, some more than others

Your question needs to be more specific. If its just a general loan and not designed as a loan consolidation and you pay off your other debts and don’t close the accounts there might not be a significant effect, however credit bureaus change their scoring systems all the time and nobody really knows.

In general Loan Consolidation is only good if its used to avoid delinquencies and lower your rate, not only your monthly payment.

Question: Do I need to do debt relief or debt consolidation and what are the best companies?
I am struggling in money right now and my employer is cutting my hours.

Answer: If you can not pay your bills most debt relief or debt consolidation companies will cause a black mark that is almost as bad as bankruptcy. If you think that you may lose your job in the near future you may want to file for bankruptcy protection now so that you can save some money for the job loss.

Question: Will debt consolidation lower my credit score?
I have about $7,000 in credit card debt that I’ve acquired during the past 4 years of college. Now I’m graduated, can’t find a decent job, and going back to grad school. I’m having trouble even paying the minimum, and was wondering if I consolidated my debt if this would hurt my credit score. Oh yeah and I owe $30,000 in student loans, but those have already been consolidated.

Answer: I have checked into consolidating my credit card debt and yes if you use one of the credit counselors it will lower your score somewhat but if you pay late, even get one month behind, you reduce your score as well. My advice if you are going to get behind consolidate or get a part-time job even if its in a fast food restaurant. It may seem below you right now but your striving to make yourself a great future by going to school. You will look back on all this later and be so happy you have done whatever it
takes to be successful. Sacrifice whatever it takes now because you will be grateful one day.

Question: Are debt consolidation websites safe and can guarantee your debt consolidation?

Answer: There are a lot of debt consolidation companies offering different types of programs and for it to work for you you really do need to do your own research. Most of those you see advertising on the Internet are reputable, but it is important that you get into the right scheme that fits your needs.

There are two maxims that we have been trained to regard as true, the first of which is if it sounds too good to be true, it probably is, and the second is we don’t get something for nothing. Many people are skeptical of free debt consolidation services and they should be.

When choosing a free debt consolidation service, people need to be mindful of the company that they are using. Making sure that the company is BBB certified and legitimate. The Internet is a free for all, and free debt consolidation services are probably not for real. Even the nonprofit debt consolidation companies charge people a monthly fee to help them consolidate debt and pay off their balances.

Red flags to look for when interviewing companies are those who ask for social security numbers and the account numbers for the credit cards right up front. There is much at risk when talking with these companies, and to be absolutely sure that the company is legitimate, the best thing to do is check with the BBB for verification. When people start looking at debt consolidation, they are already experiencing financial difficulties, and dealing with shady companies will just make it worse.

Other warning signs are companies that claim they can consolidate your debt, fix your credit report, or help you settle debt, along with the debt consolidation. Many times these people are barely operating on the right side of the law, and are looking for ways to take your money without being able to promise you legitimate results. Consumers need to use caution when trusting their money and financial future to outsiders.

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Debt Consolidation FAQ:

Question: Debt consolidation should I consider it or not?
So what is the “truth” on them? Are they good or would it hurt you more to go to a debt consolidator. I’m current on all accounts but have sadly gotten myself into a bit too much debt with credit cards. Should I consider one of these things and who is reliable?

Answer: Debt consolidation can be a great form of debt relief to start tackling your debt – whether it’s just lowering your rates, getting a better loan, or cutting your payments to get debt free faster. It is important that you know what your options are and what your goals are before choosing a debt consolidation program or company.
Debt consolidation services can help you consolidate your varying debt into one manageable payment and even establish a payment schedule for you and your creditors. It is better you seek help from any reputed debt relief company to choose the right debt consolidation option matching your financial health.

Question: Which way is better, as far as improving my credit? Debt consolidation or credit repair?
I’m trying to improve my credit score and have come across these two options. I would like to know which of these two options is fast and reliable?

Answer: Paying what you owe, not using credit, and saving to pay cash for things is the best way to repair credit. Anything else is simply moving debt, not improving credit.

Question: Is it possible to refinance a home 2 months after bought it for a debt consolidation new loan?

Answer: Unless there is a condition in your mortgage stating otherwise, yes you can refinance at any time you choose. Be careful that there could be early exit fees applicable if you do. Just check out what is available, and what fees and charges will apply should you refinance. If it will save you money then do it. You may find that you are better staying with what you already have for a year or two.

Question: Can anyone recommend a good debt consolidation or settlement company? I don’t trust any of them.
I have been trying to research help with debt consolidation, but haven’t had any luck.

Answer: You don’t need to incur the extra expense of hiring a debt management/consolidation company to settle your delinquent accounts. Your creditors will not make any concessions to them, in fact they would much rather work directly with you. You are much better off using your money to pay off your accounts than to pay someone else to do it for you.

Question: I need to know in someones opinion the best comp for debt consolidation? I need to get a single monthly bill.
Should I go in person or due it over the phone? I’ve heard some companies are scams and others are more devious to your credit score. Also, how bad does it effect your credit? How many years does it stay on?

Answer: Contact each credit card company that you owe now. Ask them to work with you. Ask each for the lowest credit rate, and ask for the lowest payment. Ask each to work with you as you are trying to consolidate your debt. Some may immediately offer you a debt consolidation loan.

After you get all of your payments lowered (and you can do this by talking to enough supervisors), then check with your local bank or credit union where you have your checking account. Ask them to help look at your bills and see if it’s in your best interest to obtain a debt consolidation loan from them directly.

Don’t be so fast to get a debt consolidation loan as they may have terms and conditions that you are not ready to meet. They also could have tons of interest and closing charges.

Question: How can I get a debt consolidation loan when I am buying my house on a Land Contract?

Answer: Wonder if you mean, “A Contract for Deed”.
You really do not have a debt on the land in that case. You do not own it, and will not until it is paid in full. This is a little like layaway. You may pay “on it” for a time, but it will not be yours until paid. If this is the case, I don’t think the balance of the “land contract” would qualify for consolidation. A lender would really be financing the balance of the contract. If it has a market value above the balance, you may get a lender to do that, and consolidate, depending on the value, which fulfills security requirements.

Question: Debt Consolidation for a Car and Motorcycle?
Is it possible to pay off these two things and roll the payments into one?

Answer: Maybe. Call your bank or credit union. They probably prefer to have one title for each loan though. Simplifies the repo process if you do default.

Question: Debt settlement or Debt consolidation, which is better for your overall credit?
I’m in a lot of debt and I have been looking for some help just to control everything and get one monthly payment. My credit is already crappy but I would like to save as much as possible and I’ve heard bad things about both the settlement and consolidation.

Answer: Neither, they are just two names for the same thing. Please do not consolidate. It is not free, they will lower your payments by increasing the length of time until you are debt free, and you will take a hit on your credit score. Or they negotiate your debt down after telling you not to pay for awhile adding another hit to your credit score.

Another option is entering a Debt Management Plan (DMP) with a non-profit credit counselor like CCCS (Consumer Credit Counseling Services). Contact your local Red Cross for a referral. They can negotiate lower payments and interest rates. They do not negotiate settlements.

Free debt consolidation is a misnomer that does not really exist. These services might be provided at lower than normal charges, and the charges are minimal so as to be a non-issue. Hence, they are called free grants.

Creditors pay these companies a part of the loan as commission generally, to maintain these services. Hence this is not then charged from the debtor. It is normally seen that the consolidation companies charge the debtor a flat fee for these services. At times they also charge a commission. These charges are generally based on factors such as, the credit rating of the debtor as also the volume of debt, and the amount of loan that is being arranged.

The free debt consolidation does not involve such fees, except an insignificant flat fee from the debtor. By hiring such a free debt consolidation service, interest rates are further reduced, and are helpful for the debtor.

There are several non-profit organizations that help debtors by providing credit counseling. These organizations also help individuals to handle their debts. Grants are available from certain Federal Government agencies, and other organizations but they are generally meant to achieve certain goals. There is a plethora of web sites on the Internet that guarantee government grants for their customers. The Federal Trade Commission has warned against such advertisements. Government or organizations give grants, usually for the betterment of the community, society or people at large.

It is very difficult to get through the formalities to find out if you are eligible for such loans and grants. There is no government program that offers grants for personal debt repayment, or any program that provides money in the form of debt consolidation loans to an individual. It?s very difficult to find an organization that is interested in giving grants to pay off bills and credit card accounts.

It is important to be careful and wary about fraudulent companies, when choosing a free debt consolidation service. It is better to check and verify the credentials of such companies before approaching them.

Free Debt Consolidation provides detailed information on Free Debt Consolidation, Free Debt Consolidation Services, Free Debt Consolidation Quotes, Interest Free Debt Consolidation and more. Free Debt Consolidation is affiliated with Online Debt Consolidation Loans.

Debt Consolidation FAQ:

Question: Does a debt consolidation loan effect your credit?
I have heard that this is not a good thing, or that lenders do not like to see this. I am sure it does not impact my score though. Someone please set the record straight.

Answer: The short answer is Yes. Only do this if it is necessary to avoid going delinquent and you are achieving a much lower rate.

Question: How does debt consolidation affect your credit score and rating?

Answer: A consolidation loan is money borrowed from a lender secured or unsecured. The money from the lender will totally pay your credit cards off 100% consolidating all of your credit balances. Does not ding your credit.

I hear people use the word consolidation in reference to consumer counseling or settlement. This is not true consolidation. What your really doing is consolidating the payment and not the balance. Dings your credit.

No matter what anyone tells you, anytime you do any less then pay your creditors 100% your credit will take a hit. For some it is worth it for others it is not.

Question: I don’t have a diverse portfolio of debt, I do not have a mortgage, could a debt consolidation loan help?
I just have a lot of credit cards but no other types of debts really.

Answer: Possibly, but I wouldn’t recommend taking your unsecured debt and securing it with any of your property (like a car for instance). I also generally do not recommend consolidating onto another credit card as this often leads to climbing balances and greater debt. Perhaps a personal loan is the way to go.

Question: Where can I get a good low interest personal loan (unsecured) for debt consolidation?

Answer: If you have a good job or repayment plan, you can ask for a loan at your
credit union.

Question: Are collection and debt consolidation attorneys worth it?
I have bad credit but it seems like old bills keep coming back to haunt me from when I was younger…I need someone to dispute my debts, a judgement and help by consolidating?

Answer: The debt consolidation people are NOT worth it. When I get a letter from those people on a past due account at my office, I throw it away. Finance Companies DO NOT have to accept what they offer. The best way to handle your situation is this…pay off each account 1 by 1. Call the companies that you owe and try and set up arrangements. Most people will work with you if they see that you are willing to work with them.

Question: How can I get a debt consolidation loan with bad credit?
I am willing to make the payments via bank draft.

Answer: If you’re considering a personal loan to pay off the debt….don’t. It’s a very bad idea. Think about it, why would you want to replace one debt with another? You weren’t successful paying off the the first set of debts so why would you think you could pay off one big one? The point is to eliminate it entirely, borrowing more money to pay off other money you don’t have is not the solution. You need to speak with a credit counselor who can negotiate a lower debt and reasonable repayment terms on your behalf. They do work, and they are a much better solution to taking on more debt.

Question: Are these consumer debt consolidation companies a better alternative to bankruptcy?
The recession has caused many consumers to cut back on monthly spending. Carrying a monthly balance seems more like a luxury than a necessity.

Answer: Its better to avoid both if you can figure out a budget. But if you have to pick one or the other, consumer debt consolidation is a better alternative. Declaring bankruptcy can keep you from getting any credit for many years. Check with the loan officer at your local bank and they will tell you the pitfalls of both.

Question: Does anyone know of a reputable debt consolidation company in CT?

Answer: You do not need a consolidation company — you need to down size your lifestyle and sort out the bills and work through this yourself.

Free debt consolidation programs exist to help individuals, to come out of various financial crises. These programs prove to be effective and are found to be helpful in several ways. They are run by nonprofit organizations and hence are called free programs. However it would be worthwhile to check the hidden costs before committing.

These programs were basically drafted for people, who are unable to pay off the monthly installments on various debts. An individual having trouble meeting the minimum monthly payments on their bills, should turn to these non-profit debt consolidation companies for help.

It is seen that several companies with counseling offices provide such programs. This enables customers to speak to a certified consolidation specialist, a professional who will design a payment plan, specific to individual needs.

The counselors are trained to take a proactive approach, to both the clients’ and the creditors’ needs, and try to find a path that will provide solace to both. The certified financial counselors working under these programs have special expertise in debt policies and rules. Hence they work as a link between both the consumer and the creditor. They aim at working for an outcome that would be a debt with lower interest rates.

Debt consolidation programs also help to reduce monthly payments and late payment charges. They claim that the counselors are working on the client?s behalf and not for the creditor.

The programs also offer flexible options to make payments for their consolidated debt loans. The customer is benefited, as they do not have to worry about individual monthly installments and only a consolidated single payment has to be made.

There are various sites online that also offer several programs for individuals, unable to pull on under the load of too many debts. It is however advisable to check the genuineness of the program before enrolling.

Free Debt Consolidation provides detailed information on Free Debt Consolidation, Free Debt Consolidation Services, Free Debt Consolidation Quotes, Interest Free Debt Consolidation and more. Free Debt Consolidation is affiliated with Online Debt Consolidation Loans.

Debt Consolidation FAQ:

Question: How To Get Out Of Debt Fast With US Debt Consolidation Services?

Answer: The most important step you must take to reduce credit card debt is to use your credit card only when required. Larger the debt is, the longer it will take to pay it off.

Look for credit cards with the lowest interest rate, and consolidate your debt. Call your credit card companies and see if they can offer you any special rates if you transfer your balances to them.

A popular alternative to debt consolidation is known as debt settlement or debt negotiation, which works by actually reducing what you owe to creditors. Debt reduction works by consolidating all non-secured debts, such as credit cards and medical and tuition bills into one monthly payment, usually substantially lower than the combined payments a debtor is currently making. The way that debt reduction works, is that the consumer pays the agreed upon monthly amount to the consolidation company and gives them authorization to make payments to the individual creditors on their behalf. The company negotiates lower interest rates, or sometimes, zero interest.

Creditors are willing to make such arrangements, because they are more likely to receive payments on time from a debt relief organization than an over-burdened consumer.

Question: What are the consequences of going through a debt consolidation company?

Answer: The consequences depend on your current situation (income, earnings) and other financial responsibilities. The best way to get an answer to your specific situation is to get a consultation conference with a debt consolidation company. You can find out where to get a free consultation and debt quote to lower you debt by as much as 50% in some places. Remember to shop around and do your research before signing anything.

Question: What is the best company to use for credit/debt consolidation?

Answer: There are many companies that provide the various services of debt consolidation. But what types of debt consolidation you are looking for? As the companies provide many services starting from credit card debt consolidation, student loan consolidation, military debt consolidation and many more.

Question: What is the best non profit debt consolidation program in michigan?

Answer: Find a NFCC member near you. These are credit counseling companies not debt consolidation. Most debt consolidation programs are not non-profit. Many are scams that take your money and trash your credit.

Question: Where can my husband get debt consolidation to pay off credit card debts without collateral?

Answer: You can make higher than minimum payments for several months, and then contact your credit card companies to request a lower rate. That can help you pay them off even faster, and it may lower your payment slightly if you need a break.

You can use the equity in your home to get a home equity loan. This can give you a much lower rate that may also decrease your income tax burden (ask your tax adviser). It does mean that you are securing what was once an unsecured debt with your greatest asset. If you are not a homeowner with equity, then this is not an option.

Question: What is the best way to get out of credit card debt. Do debt consolidation companies really work?

Answer: Most debt consolidation companies will actually hurt your credit. Your best bet is to focus on one card at a time. Pay as much as you can on that one card while paying just the minimum on the others - as you pay one off add that payment to your next lowest until they’re paid off.

Question: Debt consolidation who is a good firm to get a loan from?
If I want to consolidate all my debt, which is $8000, who would be the best banking firm? My credit is not that great, I have a bad debt to income ratio but no delinquent accounts.

Answer: If you have no collateral, and high debt to income it can be difficult if not impossible to get a loan equal to your debt.

Consolidation can also be a process in which you, or a company you hire, negotiate with your creditors to lower your existing interest rates. Like I said, you can do it yourself.

Question: I want to know if Budget Right Debt consolidation is a reliable company?

Answer: There are very few ‘legitimate’ debt consolidation companies. Most will charge large fees for the privilege of further ruining your credit. Most of the claims they make are exaggerated. One good rule to follow is this - if it sounds too good to be true, it probably is. That, and if you heard about them via an unsolicited email, steer clear of them

If you do some research, you should be able to do everything the Consolidation companies do on your own.

Many consumers are now coming to terms with the changing economy. Those who used to earn at least enough are suddenly facing job lay-offs, reduced wages, and higher living expenses. In the last few years of plastic money and easy credit, consumers were eager to spend money on goods and services through credit cards. The reality of that now is credit card debt. It has become so harrowing for some to realize that their credit card debt is so high that they could be spending their lifetimes trying to pay that off. It is because of situations like these that many free non profit debt consolidation companies are now offering their services to people faced with mounting debts they can no longer cope with. And these companies have been able to help with practical solutions to coping with these debts, for free.

Debt consolidation is a practical solution to coping with debts. In the past, we have paid off various credit card accounts, medical bills, student loans and mortgages monthly, with differing amounts, dates, and means. When they became too many, it was not only hard to keep track of these accounts but they also became too hard to deal with. We could no longer afford to make the monthly payments on them because they were just too many. Free non profit debt consolidation companies offer a way out of this mess by helping to combine all these debts to negotiate for a reduced monthly payment over a specific period of time to get the consumer debt-free. This is done by negotiating interest rates, reduced fees and longer terms.

These companies have toll free numbers one can call and a credit counselor is ready to offer advice, depending on one’s specific financial situation. They try to get your financial picture and, through careful analysis, arrive at a realistic amount you can afford to pay off all loans. Most of the time, a new loan is not necessary to pay debts off as there are many creditors willing to participate in debt consolidation programs in order to collect on bad debts. Many benefits are derived from debt consolidation, including lower interest rates, lower monthly payments, reduced fees and fixed terms. And once the loan consolidation program is in place, the collection calls, which have become a nightmare, will stop.

If you are experiencing collection calls on debts you can no longer cope with, then maybe it is time to consider debt consolidation. Free non profit debt consolidation companies offer advice even if you have not committed to their programs, and many of them are 501 companies so no fees are collected. Find out more about free non profit debt consolidation available in your area. And remember, when you commit to debt consolidation to get you out of debt, stick to that commitment and in no time, becoming debt free will be a reality for you. It is never too soon to get started, as the longer you put it off, the more debt you will most probably accumulate. What else have you gone to lose? Wouldn’t you want to be debt free in the next few years, maybe?

Learn more about non profit debt consolidation companies Find comprehensive information about the best ways to deal with overwhelming debt at http://www.debtconsolidationhelp.com

Debt Consolidation FAQ:

Question: Isn’t a debt consolidation loan different from filing bancruptcy?
I want to consolidate my credit card debt with the hopes of averaging out a lower apr. Negative effects of consolidation loan on credit?

Answer: This loan shows future creditors that you haven’t been able to handle your money. Just like Credit Counselling, it hurts you. You will be “high risk” either way, so you have to decide which is the best way for you to go.

Some advice: Work with your credit card company (ies), they can lower your interest rate easily, they did mine. They can also lower your payment to get your credit rating back to normal, too. Call them, they’ll work with you…nobody likes a bankruptcy, specially them.

Question: What are the pros and cons of debt consolidation?
I’m considering consolidating my debts. Your thoughts, would you consolidate your debts?

Answer: Pros: you can lower your interest payment. You can lower your monthly payment. You will reduce the number of payments you have to keep track of.

Cons: You may end up paying more in the long term. Depending on how they consolidate your debt, you may end up with a longer term, thus you pay off less principal every time and end up paying interest on it longer.
You may have upfront fees and costs.

Question: Debt reduction and debt consolidation services?
I’ve seen a number of ads that tell the public that if you are in debt they can help reduce or eliminate it. Can anyone tell me how this works or is this another scam?

Answer: These services never *reduce* your debt, but some can help you manage it better. Debt consolidation means taking all your existing debts and making them into one.

The services can be helpful, but go with a reliable one and make sure you read and understand every part of the deal. And don’t rely on this to save the day… remember that the only real way to deal with debt is to pay it off. The sooner the better too.

Question: I am beginning to look at debt consolidation.
I was wondering if anyone has done debt consolidation and recommend a good company? Also tell be any bad experiences, this is a big decision for me and I’ve been researching a lot.

Answer: If you have to pay someone to get rid of your debt, stay away. What they will do is not pay your creditors for months and then try and settle for less. No special skills. They just don’t pay. It will trash your credit and you will pay a fee every month that could have been used for the debt you owe. Also, if they don’t pay your creditors your creditors will sue you and not the company you hired. You, and you alone are still responsible for the debt. Its best not to consolidate because you can list all the people you owe, smallest to largest and pay the smallest first. Which keeps you motivated to pay the next.

Question: Collection agencies or debt consolidation company?
My husband and I have around $5000 in medical bills that we would like to pay off. They are all with the same collection agency. Would it be better if to deal directly with the collection agency or go through a debt consolidation company? I contacted a debt consolidation agency in my area and they informed me that even if the debt is paid it still stays on your record for seven years. If I deal with the collection agency is it possible to have them remove items as they are paid off?

Answer: If you work with a consolidation company you will be paying interest on the loan. If you deal with the collection agency, they are generally not collecting further interest. And since the same collection agency is handling all your debts, you may be able to negotiate a payment plan to include all of them together.

Yes, you can negotiate to have the item removed form your report. Note that just placing “paid” on your report does NOT remove the negative information. You must insist that they delete the item and get this agreement in writing.

Question: Any one used debt consolidation or debt settlement company?
My sister has 15000 in debt and is not making progress each month. Wondering if any one has had experience with doing this and what company they used.

Answer: I am currently using a service such as this. I spent a lot of time researching this and can tell you that you DO NOT need to pay someone to help you with this. The credit card companies pay these services to help them collect the debt. You can do it yourself. However, I got myself into the situation I did by not being thorough enough to stay on top of it. I really benefit from making only one payment and working with one of their counselors. It lowered my monthly payment by about $500. I am paying off as much as possible/month and should have it all paid off within three years. Just look for “Consumer Credit Counselors” in your area.

Question: Are there any debt consolidation sites that you recommend? I want to find one that I can trust.
I have around $20,000 worth of credit card debt. I would like to reduce my payments and consolidate into one. I don’t know what the best move for me to make is. Does anyone have any info they can offer? Is debt consolidation a good thing to look into?

Answer: If you can get a loan from the bank that is the best bet. A lot lower interest rate than Credit Cards. Just make sure you don’t ring up the cards again till the loan is payed off, or you defeat the purpose.

Question: What should I do to handle my debt? Loans? Consolidation?

Answer: Stop using the cards. Pay off the highest interest cards first. Scale back. See a debt counseling service.

Today more than ever people on TV, Radio, and the internet are advertising debt consolidation, but what is it really? Does it really work? How can I avoid being scammed out of house and home? Will it affect my credit? All these are very important questions that need to be addressed when seeking debt consolidation assistance.

Consolidation does not get rid of existing debt. Most often it is credit cards, retail credit, student debts and car loans that end up being consolidated. People use it to roll their smaller payments into one large payment and they often extend the life off the loan to lower monthly payments. The most practical type of debt consolidation program rolls existing debts into a home mortgage or HE-LOC loan on your house. In a sense, you are just borrowing money from one lender to pay off another. The main purpose of debt consolidation is to lower your monthly payments. It is important to note that even at a lower interest rate, you may still be paying more interest over the life of the loan if the loan is for a significantly longer period of time.

Beware of people who tell you that you can settle your debts for a fraction of what you owe. If you are not already behind on payments this will often only work by ruining your credit . If you are behind, you can probably settle a lot of this debt yourself with out paying a 3rd party commission. If you own assets or have an income there is nothing to stop the credit card companies for suing you after the settlement for the amount you originally owed. Another thing to avoid is brokers trying to consolidate your debt into an adjustable rate mortgages with a balloon payment due in 1, 3, or 5 years. Brokers can make a hefty kickback on these loans because the true payment amounts can be masked behind the arm.

Getting debt consolidation assistance is a serious step. At best it is only a temporary fix to a bigger problem. You should find out as much as you can about debt consolidation companies before proceeding.

S. Arnold, MBA has studied finance for several years. He offers FREE Debt Consolidation Assistance

Debt Consolidation FAQ:

Question: What is the best debt consolidation program around?
I am $30,000 in debt with high %rates and $1000 a month minimum payments. Any ideas for consolidation program?

Answer: A debt consolidation company doesn’t do anything for you that you can’t do for yourself. They are just a little more practised at bargaining, and will take a small percentage of your money for their efforts.
Basically all they do is contact your creditors, and guarantee them that they will get, say, 50% of the money they are owed if they forgive the other half. Then the consolidator tells you the wonderful news that you only have to pay 53% percent of your original debt. You’re happy that your debt has been slashed, and they are happy taking that 3% for themselves.

You could easily just call the creditor yourself and offer the same deal, and offer to cut out the middleman. If you do go with a consolidator, try to find a non-profit organization that doesn’t have a financial interest in your payments. American Consumer Credit Counseling is pretty well-known.

Question: Do Those Debt Consolidation Companies Really Work Or Are They A Scam?
I was thinking about consolidating my debt and wondered if anybody had a good experience with one.

Answer: Biggest problem with debt consolidation is you are only shifting your debt to a new loan. The interest rate might be lower but the time is stretched out and you end up paying more in interest by the time you finally get the loan paid off. Many people run the credit cards back up and then have the big loan payment and the credit cards to pay.

Credit counseling is definitely a better way to go. Check for a NFCC member in your area. These are legit, non-profit companies that offer debt management programs for a nominal fee. They don’t settle your debts. The negotiate lower interest and payments so you can pay off your debts.

Absolutely avoid debt settlement companies. Most are pure scams. At best they will trash your credit and get sued by your credit card companies.

Question: Which is best—debt consolidation or chapter 13?
I have about 13K in unsecured debt. I need either debt consolidation or chapter 13. Which is best and how do you recommend?

Answer: Filing for bankruptcy over $13,000 would be, in my opinion, an unwise move.

You would be best to figure out how to pay off the debt the cheapest and fastest way possible while doing as little damage to your credit score as possible.

You mentioned debt consolidation as an option. The term debt consolidation can be a confusing one. Many people think it is a loan to pay off your existing debts. This is not the case. When you hire a debt consolidation company they will in turn try and negotiate lower interest rates with your creditors and act as a buffer between you and those same creditors. You make one “consolidated” payment to this company each month and they make the payments to your creditors on your behalf.

Another option, (and if you are considering bankruptcy this option may work for you), is debt negotiation. Debt negotiation or debt settlement as it is also known, differs from debt consolidation in that the actual amount of debt that you owe is reduced, not just the interest rate.

Question: I need a good debt consolidation company. Any ideas?
I have several personal loans out. My monthly payments add up to about 800 a month, I only make a 1000. I’m not behind on payments but I cant keep up much longer. I cant seem to get any local banks to even listen to me.

Answer: Debt consolidation is an option, and you should look into it. Just be careful about WHAT you’re getting into. Some plans, because of their higher APR rates get you into more trouble than you were.

Also, some lenders look poorly upon it later on. Some institutions believe that it really is a black mark. It will depend upon the types of deals that your particular company or lender work out, and of course, your own individual circumstance. For some with absolutely NO way out, debt consolidation is a welcome option.

Take a good hard look at all the options and plans offered, and don’t let a single company pressure you into something you just can’t do. Make sure that you’re comfortable with the plan offered before you commit to it.

In any case, it doesn’t hurt to investigate debt consolidation as an option. It doesn’t cost you anything to find out more information about it.

Question: Will a debt Debt Consolidation pay off your child support?
I know how a debt consolidation company works and once they pay off my debt I pay them back in monthly payments. But do they help/offer helping you pay off your child support debt and student loans?

Answer: No. They won’t pay off anything. They just contact your credit card companies and ask them to reduce your interest rates. They combine all of the credit card debts together, add up how much the total monthly payments are and you still pay them off just as you always have. You only have one large payment now. If you contact the right kind of credit service (one that is non-profit) you are better off. The only way to pay your child support is to make regular payments on it.

Question: Does Debt Consolidation Free up My Credit Cards?
If a Debt Consolidation Company takes over my credit card debt does that then free up my credit cards? Or do my credit card companies cancel all the cards immediately?

I actually intend to stop using the cards, but just in case I need them, will they be at zero balance once the Debt Consolidation Company comes in?

Answer: It depends on what you are calling a debt consolidation company.

Normally, debt consolidation is a big loan that pays off all the small debts. You then have a fixed payment amount for a specific number of payments. Problem with debt consolidation is that many people run the credit card debt back up and end up with the big loan payment and the credit cards to pay.

If you are referring to a debt management program where you send money to a credit counseling service who pays the individual debts, you usually have to agree to stop using all credit cards. In some cases the credit card companies will close your account.

The credit counseling service negotiates lower interest and payments so that you can pay off your debts. If you opt for credit counseling, be sure to use a NFCC member. These are legit, non-profit companies.

Question: How can a debt consolidation loan that also includes home repairs and will reduce monthly costs by $650 be bad?
I checked out the loan and the interest is not too bad giving that this is a second mortgage that gives money for repairs and pay offs. The only thing I see is that it eats up all the equity and we will need to live in our home for at least 15 years before trying to sell…so that alone is the biggest decision. I am just wondering if there is anything else I should be looking for?

Answer: Is it an adjustable rate? That could be very bad. Additionally, what is the rate? Is it very high (2 Percentage points above the national average), if it is you are paying too much. Are there any loan costs, how much are they? More than say 2 percent of the loan? Is it a 15 year prepayment clause? Can you not prepay it for 15 years at all? That is bad as you may want to move.

There is a lot to consider. Your equity will increase because house values increase with time, but an adjustable rate mtge is a killer. Also, if the rate is to high, shop around, you may do better. Try getting a loan directly from the bank. They are usually cheaper than a broker, and they tell you a lot more about your eligibility, credit scores etc.

Question: Does anyone know of a lender willing to help with debt consolidation for poor credit?
I have been working very hard to improve my credit score and have had to make several personal loans to do so. Now I have a lot of different payments with high interest rates. I would much rather have one payment with one interest rate.

Answer: The type of loan you wanted is poor credit consolidation loan. Since you have a poor credit forget getting this debt consolidation loan from a bank. You have to try private lenders and credit union. With so many lenders and loaners and scams it is so frustrating to select one that can really suite your need. But you can get this done from the comfort of your home. That is to search online. Visit the lenders website, do some research and apply online when you are satisfied.

Interest free debt consolidation are those processes whereby you roll all of your existing debts into one payment and interest rate, and which do not create an aggregate increase on the interest rate. Interest free debt consolidation companies provide consumers the option of paying back their unsecured credit card debt through a monthly repayment plan. This plan pays off creditors and you will save hundreds of dollars in late fees, interests and over the limit fees. This type of financing helps those individuals that want to eliminate debt without having to declare bankruptcy.

Interest free debt consolidation loans can be a blessing to anyone facing an unsure financial future because of past imprudent spending habits. Interest free debt consolidation can free a person of debt from credit cards, personal loans, store credit, lines of credit, medical bills, etc. This type of financing is not practical in consolidating mortgage or car loans, as they are not deemed unsecured credit.

Many loans are available review on the Internet and one can interact with counselors who will help you fill out a financial questionnaire, submit financial information etc. Just make sure that the company you are dealing with is reputable. Most are and use

modern, encrypted information technology for security. Interest free debt consolidation programs are uncomplicated to use and easy to find. A web search will offer hundreds of companies to choose from. Many interest free debt consolidations organizations are obtainable twenty-four hours a day. Statistics show that more than two million people have been helped with a debt consolidation loan.

Free Debt Consolidation provides detailed information on Free Debt Consolidation, Free Debt Consolidation Services, Free Debt Consolidation Quotes, Interest Free Debt Consolidation and more. Free Debt Consolidation is affiliated with Online Debt Consolidation Loans.

Debt Consolidation FAQ:

Question: What effect does using one of these “debt consolidation” companies have on your credit rating?
Do they really help? Does your monthly payment really drop substantially? Did it work for you?

Answer: I listen to a radio show every day (Dave Ramsey …look it up, it’s pretty interesting). He says that debt consolidation does some damage to your credit rating, they’re not good plans and sometimes the mess up. He also notes that if you don’t change your behavior, you’re going to get back in debt. He has a process where you pay minimums on every debt you have and then pay everything you can on the smallest. Then once that’s paid off, work on paying off the next.
This is part of a bigger (but very simple) plan he details for free.

Question: Is it still better to pay off the debt myself or continue to work with debt consolidation company?
I have accumulated a lot of credit card debt due to an illness and loss of employment. The amounts I was paying became so large that I couldn’t afford to make the minimum payments so I decided to seek a debt management company. This has been going on for a year, but I don’t seem to be getting anywhere because the interest rates continue to climb on the accounts I’m not currently paying on.

Answer: Work with a company. My husband and I worked with a company in Des Moines, Iowa called Consumer Credit. It was the BEST thing we ever did! July of 2002 we went to them and by October of 2005 we were out of credit card debt! In November of 2005 we were able to move into a new home, bigger than our two bedroom bungalow we lived in for 5 years.

Question: How do debt consolidation places work?

Answer: Debt consolidation agencies are set up to reduce your debts and interests. They help you by negotiating with your creditors on your own terms. Their basic function is to consolidate all your debts or monthly bills in one convenient amount payable every month; and to convince your creditors to accept these terms.

Question: In some debt trouble and I need to know if debt management is better or debt consolidation?

Answer: Debt management would be where a third party comes in and works with you.

For debt consolidation, lets say you owe one credit card x and y. You would combine the two and make the payments.

I don’t know what your debt position is. For some people, debt management is the solution, but it may impact your credit, due to practices that some companies use.

Question: Have you ever heard of debt management (not debt consolidation) and if so, do you think it is beneficial? Why?
I make about $55,000/year and I currently owe approx. $34,000 in credit debt alone. I do not want to file bankruptcy if I don’t have to. I also would like to stay away from consolidation. Today, I was told by a company that they have something called debt management. I’ve never heard of that, but they said unlike debt consolidation where they lower both your interest rate AND balance, all debt management does is get the creditor to lower the interest rate. I would pay a monthly payment to the company and a monthly fee and they would make my payment for me.
At this point, I can only make minimum payments and my balance is going nowhere. Should I give debt management a try?

Answer: Stay away from Debt Management. That is worse than bankruptcy. Getting a debt management service says to all creditors that you cannot manage money.

Best thing to do is get a second job and start paying off and canceling those cards one at a time. Make th minimum payments, but take the smallest debt first and conquer it.

With working a second job, maybe you can also control your spending. Also, make out a budget and live by it.

Question: What is the difference between debt consolidation & credit consolidation?
I am trying to find out if they are the same service, or if they are two separate services, how they work, which is better service to use and why, and a rough estimate of time and cost of these services.

Answer: From a technical standpoint, there is no such thing as credit consolidation. Credit is simply an unmonetized offer of purchasing potential. Simply put, you might have $10,000 as a credit limit, but it won’t hurt you until you use it and can’t pay it back. Debt consolidators look to combine your higher interest debt like credit cards etc, into a single lower interest payment. If you’re deep in hoc, this can save you hundreds per month. Make sure you’re dealing with someone reputable before you sign anything. Your state’s Better Business Bureau is a good place to start. Some states have credit counseling services available as well.

Question: What is the difference between getting the equity of your home and debt consolidation?

Answer: Debt consolidation is when you get one large loan to cover all your smaller debts. It can be any loan and should be when you can get a better interest rate or to spread your debt over more years.
A home equity loan is a mortgage where you pull cash out. That cash can be used any way you want. Invest or pay off the highest interest debts. You can get them up to 30 years so paying off a 2 year car payment with a 30 year mortgage reduces your monthly payment but you will be paying 30 more years on a car you may not have more than a few years.
The home equity loan means when you sell your house you will get less at closing and may not be able to afford to sell at all or will lose your home instead of having the car repo’d.
Besides the danger of losing your home you are in danger of running the debt back up. So if you refinanced your 2 year car loan to a 30 year mortgage you might go buy a different car before you paid off the current one and will have a double debt.

Question: What’s your input on debt consolidation?
My husband seems to let his debt really get him down at times. I sometimes find him staring off in a days, and I know that’s what’s on his mind. I know he has student loans, credit card payments, and still paying on his truck, & other misc. bills. What’s the advantages and/or disadvantages of contacting a debt consolidation company. How if at all can that help our situation?

Answer: Consolidation simply moves the debt around. Within a year, most people (over 90%) end up worse off after consolidation.

Look for a local source that teaches credit management and budgeting. Churches, community groups & Credit Unions are good sources.The classes could be free or cost up to $100. NO MORE THAN $100. Some people charge $500 or more and are of questionable value.

Focus on reducing spending, and paying off the smallest debt first, then the next, etc.

For most people, they accumulate debt since they didn’t know how to manage their finance. But with time and some organization with the financial aspect of things, they can get out of their money owing problems using debt consolidation. Before you head to one or sign up directly on the internet, you need to get all of the papers that you get in the mail where you have bad debt with such as magazine and CD clubs, book clubs, and anything else that are not a monthly thing such as house and car payments.

Take the time to do research on different companies that you came across and if you can, ask others online and in person what they think of that company and how was their service and if they would actually recommend them to others. Some people might of had bad experience with one so go and check around before making your final decision.

For some people that doesn’t want others to know, there is no way where you can find out on your own to get the information. There are people online that are willing to share their experience with some companies so then you can decide whether to go with one or not. After finding some, call them up and take the chance to talk to some. You need to feel comfortable working with some before using their services.

A lot of legitimate companies would have brochures or catalogs listing the services and the price that they charge of what they do. If you have a hard time understanding, ask one of people that work for that company to have them explain to you more. Ask them for their credentials and if possible to show you a few examples without showing personal information of others.

By the way, by researching and comparing the best debt consolidation companies in the market, you will be able to determine the one that meet your specific financial situation, plus the cheaper interest rates offered. Nonetheless, it is advisable going with a trusted and reputable debt counselor before making any decision, this way you will save time through specialized advise coming from a seasoned debt advisor and money by getting better results in a shorter span of time.

Hector Milla runs the Best Debt Consolidation Company website - where you can see his best rated debt consolidation company recommendation.

Visit for further information and read our full review of the best debt consolidation service, plus articles and video training about how to get the most of your debt consolidation process.

Debt Consolidation FAQ:

Question: How can I find the best debt consolidation program in New Jersey?
I’m trying to become debt free and need help with unsecured debts. Been trying to locate a agent online but, getting kind of frustrated.

Answer: I work in collections for a credit card company, we say just look in the phone book and check with the Better Business Bureau. ALWAYS go with non-profit. The for profit ones will screw you over and most credit card companies will not work with for profit. And remember it can take about 3 months to get this set up with the creditor. Credit counselors have to send proposals to the creditors to be APPROVED. So make sure everything is correct with the creditors and with your credit counselors. And you can still get calls from the creditors until the proposal is accepted.

Question: What is the best way to become debt free?
I have looked and read all kinds of different stuff on debt reduction, debt consolidation,debt settlement. I know that I don’t want to file bankruptcy!! I’m about 8,000 in debt, all mostly being hospital bills. I am a mother who makes about 17,000 a year, and it takes about that much to survive. So I’m trying to figure out a way to get out of debt, be able to afford the payment and it not hurt my credit score.

Answer: Stop borrowing and pay down your debt. You may have to get a 2nd or 3rd job. If you have a car, sell it and get something that’s paid for if your car is not. Don’t bother with people who try to fix your credit, it’s better for you to learn how to manage your own bills instead of just giving the problem to someone else.

Question: What is the best procedure to follow about debt consolidation?
I have a loan and 3 credit cards almost fully used. I just want to know how I can consolidate my 4 payments with one effective payment.

Answer: Start by making a list of monthly expenses - ones that you can’t avoid like food and housing (fixed expenses), and also ones that you can control like entertainment and technology purchases (discretionary spending). Take your monthly income and subtract from that your fixed expenses. This is the amount that you have left to save and use for paying off your debts. Put a freeze on most discretionary spending for now. Get an American Express Green card, which you have to pay off monthly, and get rid of the old credit cards.
If you own a home, consider refinancing your debt into a new mortgage or home equity loan so that the interest is tax deductible. If you don’t own a home, then pay off in either order: Either pay off the highest interest cards first, or pay off the smallest card balance first. The second option can be psychologically rewarding since you can see the progress you are making in completely wiping out each card balance.
It takes discipline, but you can do it!

Question: Can I cancel a credit debt consolidation program with Consumer Education Services inc?
Once entered can I leave the program?

Answer: You need to look at the contract you signed/agreed to. If you don’t know where your copy is, perhaps they have one online. If not, call them and ask for a copy. You might be able to just call them and ask how you can terminate your agreement with them. They may have penalties or fines or exit charges but in the long run, it could be the best way for you to go. Don’t just dust them off without contacting them; they may have legal avenues to go after you. CES is a non-profit firm, but they make money thru the fees you pay to have them manage your payments. Overall, they seem to be a well operated, reputable firm but I’ve never been a client.

Question: Whats the difference between debt consolidation, debt validation and debt settlement?

Answer: Debt consolidation is where you consolidate all outstanding credit card bills into one single loan so you pay all the creditors off. In this case you will just have one single monthly payment to the company that gives you the consolidation loan.

Debt settlement is where you negotiate reduced amounts for outstanding debts, like 50%. You can only do this when you are drastically behind on your debt. Your credit card company is under no obligation to accept settlement offers. However, if you are way behind often they will accept settlements in lieu of loosing everything if you file for BK. Debt settlements are major negative marks on your credit file.

Question: Where can I find a good debt consolidation loan?
With not so great credit and do not own home for equity.

Answer: There is no such thing as a good debt loan. The consolidation loan usually means that the debt is spread over a longer period. Also, the loan company expect their cut as well. A better idea is to contact the companies you are in debt to, explain your position honestly, and they will normally agree a reduced payment plan.

Question: Is it worth to use those debt consolidation companies for tax relief?
I want to get all my financials squared away with the IRS– anyone know the average rate those “tax relief” companies charge? Are they worth it?

Answer: Debt consolidation companies may be able to help with other creditors but can’t get you any relief from taxes because IRS will demand payment ahead of unsecured creditors. You or someone authorized to represent taxpayers would have to handle that job. The tax relief companies that advertise on TV seem to promise that they can get you a pennies on the dollar deal and sometimes can but can never guarantee it. For a typical tax delinquency you are probably looking at fees in the $4,000 range, plus or minus a thousand depending on how much you owe.

Question: Is using a debt consolidation company a good idea?
I would like to use one but have heard some horror stories. What are your experiences (good or bad) with them. What are the best ones to work with?

Answer: Most paid debt consolidation companies are not a good idea. They are essentially greatly overcharging you to initiate services on your behalf that you have a legal right to under Chapter 13 Bankruptcy (Wage Earners Plan).

Wage Earner’s Plan under bankruptcy is a personal reorganization with the intent of paying back your debts, but under revised terms that allow you to do so (lower rates, longer time)

Search Chapter 13 and Wage Earner’s Plan under government sites, particularly U.S. district courts, for more information.

Here’s something to keep in mind. The credit card companies are NOT working for you. They are only in the business of making money for themselves. The main goal for these major credit card companies, is to cash in on the late fees and finance charges. The more difficult they can make it for you to pay, the more money they’ll receive. Stop handing them your hard earned money! By hiring a reliable debt consolidation firm, you’ll begin seeing an immediate improvement in your financial status.

Once you make the decision to obtain the services of a debt consolidation firm, a financial specialist will be assigned to compose a personal debt management plan, which will, in essence, be a road map that will lead you out of debt. When you hire a reputable company, you’ll be given seasoned advice by professionals that are working for YOU. Instead of making three or four payments each month, a good debt consultant will be able to reduce your payments to just ONE.

How do you find a reputable debt consolidation company? It just takes a little research. Look online for a company that offers low rates, has a qualified staff and is certified. You also want to weed out any firm that has had any complaints filed against them with the Better Business Bureau. A less than reputable company will not be beneficial to you, and can make your situation worse.

Begin your search by asking A LOT of questions. You want to deal with a company that can answer any question you have, and offer a comprehensive solution to your problem.

By the way, by researching and comparing the best debt consolidation companies in the market, you will be able to determine the one that meet your specific financial situation, plus the cheaper interest rates offered. Nonetheless, it is advisable going with a trusted and reputable debt counselor before making any decision, this way you will save time through specialized advise coming from a seasoned debt advisor and money by getting better results in a shorter span of time.

Hector Milla runs the Best Debt Consolidation Company website - where you can see his best rated debt consolidation company recommendation.

Visit for further information and read our full review of the best debt consolidation service, plus articles and video training about how to get the most of your debt consolidation process.

Credit Card Debt Consolidation FAQ:

Question: Is it wise to pay off credit card debt with a home equity loan?
Is there a better option? My credit union is offering a consolidation loan and telling me that the average in our area is about 13.87 percent.

Answer: A home equity loan if often touted as a good way to pay off credit card debt, especially in areas where homes have greatly increased in price; however, you should know that technically, the interest on such a loan is NOT considered deductible by the IRS unless the loan is used to improve the property. It’s likely that you could claim it anyway without the IRS auditing you, but it could happen, and in that case, you’d have to pay any back taxes plus interest to the IRS. This is a position you seriously want to avoid.

Secondly, you’re betting against your house that you can afford to pay this loan, Are you willing to close all the credit accounts if you take this loan, so you won’t be tempted to run the balances up again? You won’t have a way to pay them off again if you do.

Remember that you’re possibly putting yourself in the position that, should you need to sell the house for some reason, that you’d lose the equity you’ve gained over however long you’ve owned it. Is this a good risk?

Question: Credit Card Debt Question?
I currently have about $30,000 in credit card debt between 7 different cards. I make slightly more than the minimum payments every month, which total around $1,000 a month. This eats up half my income. I have never been late on a payment, ever. Does it make sense for me to seek some kind of debt consolidation or debt counseling service to negotiate with my credit card companies?

Answer: I have taken and taught the Dave Ramsey course and what he recommends is paying the minimum amount on all you credit cards except the smallest amount owed. On that card you apply all the “extra” money you’ve been paying. When that debt is payed off you then apply the money to your next lowest debt. Keep paying the same amount of money you were sending to the first company to the new target debt which is the new lowest debt. In the meantime don’t use your credit cards anymore. This will work and you will have learned a lesson in money management that will benefit you forever.

Question: Credit Debt Consolidation?
I only have two credit cards ($750.00 limit on each; each just about to their limit). I try to make more than my minimum payment each time, but money’s been a little tight the past couple months. I’m thinking about Debt Consolidation but I’m not too sure if that’s the best thing, or if I should just keep making the payments on my own. Also, I was thinking of transferring one of the balances to a lower interest rate credit card. What do you think would be best?

Answer: If you are paying extraordinarily elevated interest rates on one or more of your credit cards, you should consider consolidating all of your payments. It could provide you with a single periodical expense plan with low interest rates and a favorable pay-back period.

Question: Credit card debt…
I have about $3,500 in credit card debt. What’s the best way to pay it off?

Does anyone have any experience with those debt consolidation services seen on TV?

Answer: Most likely there are two ways to consolidate your credit card debts. One of the way is Credit Card Consolidation Loan, which is a type of unsecured personal loan. When you have several credit card debts, you can consolidate it into one lower, fixed rate loan. You make a single lump sum payment each month to your credit counselor and he in turn will pay off to your current creditors.The added advantage would be, it will also improve your credit score as subsequent payments are made to pay off the new loan.

Another way is credit card debt settlement plan wherein a debt settlement company would negotiate a lower lump sum payment to payoff your creditors and as a result you end up paying fifty percent or even sometimes lower, of your outstanding balance to them.

Question: Please help! Credit card debt!
Over the years I have acquired a lot of credit card debt. I was paying my cards just fine but then suddenly lost my job. Ever since then I have not been able to even pay my minimum payments. I want to get out of debt and improve my credit. Can anyone recommend a good credit consolidation company that I could contact for some help?

Answer: Call National Foundation for Credit Counseling or search their website for a credit counselor near you. Credit counselors on this site are there to help you — not to make money for themselves. They will assess your situation and help you.

Please do not go with a company that promises to reduce the amount you owe. They often advise you to stop paying your cards so they can get a settlement for a smaller amount (that will ruin your credit).

Question: Is a debt consolidation loan different from filing bankruptcy?
I want to consolidate my credit card debt with the hopes of averaging out a lower apr. Negative effects of consolidation loan on credit?

Answer: Debt consolidation and bankruptcy is two totally different things.

The biggest problem with a debt consolidation loan is that if you don’t solve the problem that caused the need for it to begin with you could very well be forestalling bankruptcy. Get rid of the credit cards, budget your expenses, live within your means.

Question: Which is a better route, a “debt- consolidation loan” or a “personal” loan to pay off credit card bills?
How does either loan affect credit scores etc? Which one tends to get the better interest rate? Any reccomendations on what financial institution to go through? How much money do you need to make to take out approx. 10k?

Answer: Your options depend on your income and your credit. Higher income and better credit will enable you to get better loan options. Poor credit and low income will push you into finance company loans and other sources of high interest debt.

There is actually no difference between a debt consolidation loan and a personal loan. You can use a loan for debt consolidation or any other personal use.

Question: Any options besides Debt consolidation?
I have about $23,000 total in credit card debt. I have great credit just too much. Total is probably 6 different credit cards. I am interested in debt consolidation thinking that it will help me pay these off faster. I have canceled all of my credit cards and will never open another one. Is there any other option or is debt consolidation my best option?

Answer: The key is, will debt consolidation result in a lower interest rate or simply a longer period of time to pay off the cards? Pay the minimum on the low interest cards and apply all the funds you can to the highest interest card to pay it off first.

Do you own a home? A home equity line of credit may make sense if it helps you pay off these bills and you can control your spending afterwards. Go to a credit union that you qualify for and see if they have credit counseling; many do. They may be able to give you a loan for your debts that will result in a lower interest rate overall.