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.

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.

Hector Milla runs the Best Debt Consolidation Service website – where you can see his best rated debt consolidation company recommendation – and the Best Debt Management resources center.

Find free online debt consolidation tips and bad credit debt management advise respectively. Visit for further information.

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.

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.

Is there such a thing as government aid in free debt consolidation? Many people will tell you that the government will help you pay your debt and they might if it is student loan debt. But if you are looking for the government to give you a check to pay you credit cards, you are most likely going to be disappointed.

If you have credit card debt you are going to have to research your debt consolidation options and select the one that best works for you and your financial situation. You have 2 options for consolidating your debt and they are a loan or a credit counseling service. A loan or a credit card balance transfer is not in your best interest and I would not recommend moving the money you owe from loan type to another.

Credit counseling is your best option for consolidating debt. This is a service that consolidates your debt without a loan. They reduce your interest rates to less then 10 percent in most cases and eliminate your fees. The best part is you only have to make one payment each month no matter how many account have enrolled in the debt management plan.

Your credit counseling agency will handle all interaction with your lenders and that will be a relief. These companies also have budgeting and other educational material available to their members. You can have an online quote for credit card debt relief within a day or two and can be on your way to paying of your debt. There is a lot of information about the government giving grants for debt relief, but there is no reliable evidence that this happens. If you want to get out of debt, it is going to be up to you to take the necessary steps.

Credit card debt relief is not going to be easy, but it is something you must do. There are several small steps that you can take that will expedite the process of getting out of debt. These steps all add up and before you know it you will begin to see a dent in your credit card balances. The biggest problem is most people do not know where to start. Many of them just need a guide that they can follow that lays out a clear plan for paying off their debt.

If you are desperately looking for an answer to your credit card debt problems, this plan will give you the guidance you need to be debt free quickly. If your debt is consuming you and you are ready to do something about it, see how you can begin eliminating your debt today.

Free Debt Consolidation FAQ:

Question: Where can I go to get free debt consolidation?
I need to lower all of my bill. I want to get into a free non profit debt consolidation.

Answer: Consumer Credit Counseling Service or CCCS helps you manage your debt by getting your creditors to lower interest rates sometimes to 0%. They will help you set up a budget and you will only be making one payment a month.

Question: Where can I find information on FREE debt consolidation? It seems wrong that people charge you a fee.?
Why is it that all these sites on the web want to help you, but they also want a fee, which makes your amount of debt go even higher? Are there any honest engines out there to go to?

Answer: They have to carry out work to do it, writing letters, making calls, organising agreements. So they have to charge for that. They also need to make a profit – they are in business after all!

But be careful – all debt consolidation people do is bring all the loans to one account for a longer period which whilst it might appear you are paying less because your payments may be smaller – you actually pay a lot more over a longer period.

Question: Are there any FREE debt consolidation companies? I’m in deep medical debt and don’t want to file bankruptcy!!
I had 3 major surgeries last fall. I had insurance that covered 80%, but the 20% is still more than I can handle. I don’t want to file bankruptcy. I heard that the debt consolidation companies charge too. I don’t need more debt! Should I wait for all the agencies to send my bills for “collection”? Some have already and the interest that they charge monthly is outrageous…Help… What should I do?

Answer: You should know nothing in life is completely free, but medical debt is one of the easy folks to work with — set down and figure out a realistic figure you can pay each account each month and contact each one and tell them this is what you plan to pay each month — in most cases they will go along with your plan!!!

Question: Free debt consolidation plans?
Does anyone know of a debt consolidation company that doesn’t charge fees that is reputable?

Answer: Dave Ramsey says to stay away from these. There rip-offs. He has a website and several books out. His plan to get out of debt, sell what you can, rice and beans, and start paying hard down on the debts.

Question: What is the Best free debt consolidation?

Answer: You’ll have difficulty finding a truly free debt consolidation because nobody lends money for nothing.

Try your bank. It won’t be free, but they might help. If they can’t or won’t help, then do your own research. There are different debt consolidation schemes, depending on your circumstances.

Question: Need a free debt consolidation company?

Answer: There are alternatives to bankruptcy but it depends on your circumstances as to which one you should go for. My strongest advice is to do your own research and not make a too hasty decision.

Question: Is there any really “FREE” help services for debt consolidation? I need help but short on cash!?
I am afraid most of the ads I’ve seen charge a big fee for these services. Has anyone tried any that were free and if so please give me website or names.

Answer: Nothing is “free”–those debt consolidation companies want their money, too. Better to pay off the debts yourself. Make a budget (easy) and stick to it (hard). If you have debt that charges you interest, pay the debt with the highest rate first, then the next-highest-rate bill, pay it off. Yes, it will take time, but it can be done, and then you will be so proud of yourself. It takes personal discipline, not a debt consolidation company, to get you caught up. And if you can, get a part time second job and use that money to pay your debt. Just keep telling yourself the second job is only for a short time until you are back on your feet.

Question: What is the difference between “free” debt settlement counselors and those that charge a fee?

Answer: Many times the companies which are “free” are actually loan providers. So although their service is technically free, their goal is to get you to do a consolidation loan through them. This can actually be beneficial to you, depending upon your needs. Usually a consolidation loan means you pay the amount back over a longer period of time. Which means your monthly payments are lower, but the total amount of interest you end up paying by the end is greater. This can get you out of a bad situation for short-term, but you do end up paying for it in the end.