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.

Debt consolidation, as the name suggests, means you are making sure that you have taken out a large amount of money as a debt. It is going to be used to pay off your numerous other smaller debts. Once you have dealt with those trifling debts, in the shape of a student loan, a mortgage loan, a car loan, the temporary payday loan, and so on, you just need to focus upon getting rid of this major financial obligation in the shape of a debt consolidation loan.

There are many companies out there who are quite willing to give you a large sum of money to meet your financial requirements and obligations. One needs to understand that you may get a loan from such companies to manage your debts, whether they be home loans, or a possible refinance loan for meeting all your financial obligations, or cash amounts given to you to cover your mortgage payments. You might also be helped by these financial companies to transfer a balance into your bank account to clear your credit card debts.

But then one comes to the major point. There are many people out there who think that it is quite good financial tactic to use a debt consolidation company as a medium to evade tax obligations. Now, that is going to depend upon whether you have got that particular advice from your company, or not.

Once you know that you are getting advice from a reliable company you can bank upon, you can ask them to counsel you how and whether your consolidated debt amount can be written off as a tax relief. The best company is, of course, going to give you top class advice, and is going to make sure that your financial embarrassments are dealt with a methodical and systematic manner.

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: Does anyone have reliable information about debt consolidation?
I was told that consolidation was better than filing bankruptcy. Anyone who knows of a good company that doesn’t cost a lot too will help. I don’t know much about this and any information will help.

Answer: If applying for a mortgage later, bankruptcy and credit consolidation are both evils with not one better than the other. It basically says that you cant handle your debt on your own. I would recommend contacting everyone you owe money to and setting up a payment plan on your own so it does not effect your credit via a consolidation company or a bankruptcy

Question: Debt Consolidation – is there a way to keep any of the accounts?
I have 2 VISAs and a personal loan I want to consolidate into 1 payment. I don’t really want to lose one of the VISAs b/c it is in connection with my bank and tied to my checking. Also the personal loan is from a company that I am in very good standings with. Is there a way I can consolidate without losing the one VISA and reputation w/ the loan company?

Answer: Sure. You don’t have to consolidate all your debt. You can choose which ones you need to consolidate and leave out the rest. But they will ask that you don’t use those cards that are in the program any more. Just ask any credit counseling program.

Question: Can you receive one loan for home purchase and debt consolidation?
I would like to know if there is a type of loan that will allow you to consolidate credit cards, personal loans, and purchase a home at the same time. I am currently a graduate student with student loans as well.

Answer: Simple answer: No.

Since the explosion and collapse of the sub prime market, lenders are much more stringent now than in the past. As a result, you will be lucky to get a mortgage with 10% down, and financing the remainder.

In order to do what you asked, you would need to get more than the cost of the house (house + cc+ per loans = X). Unless there is some special situation, ie the value of the house is significant less than you are borrowing, then you will be unable to get what you have asked.

Question: What is the difference between debt consolidation loans and using debt consolidation companies?
How do I know the difference? Or are there any differences?

Answer: A debt consolidation loan is a loan that you get to pay off all your bills at once, then in turn you pay the loan.

A debt consolidation company, makes payment arraignments to all your creditors. You pay a monthly payment to the company, they in turn pay your payment.

Question: I am trying to clean up my credit . Are there any good debt consolidation companies who can help me?
I am in debt at least £2500 – 3000 and really just want to start cleaning up my credit file from now. I was recently with a company called churchwood financial who absolutely ripped me off. I am now looking for a company who offers free debt consolidation. I am at uni and working part time and need help with managing all my repayments etc.

Answer: Most debt consolidation companies are ‘for profit’ companies – therefore they will charge you a fee for their services.
Why not avoid them altogether, and work directly with your creditors? Many times a simple phone call will get you what you want – i.e. reduced repayments and lower or frozen interest rates.
Start be clearing the highest interest creditor first, then snowball the payments into other creditors.
May take a little more work to set up, but at least you save yourself the fees.

Question: How do you apply for debt consolidation? And how do you know whats the best one??
I have a debt for about $2,500. Now to some people that may not be much but for me ..its a lot. I am 20 yrs old and I messed up my credit bad the minute I turned 18 so now that I am a little older and smarter and stressed out I want to make it better and start fresh..What should i do???

Answer: If the credit is already bad, it may be difficult to get another loan. You may just have to bite it & pay this down. This will automatically improve your credit also, so long as you pay it on time & at least the minimum. Credit counseling could be another way to go

Question: What is the difference between consolidation and debt settlement company?
I called creditsolutions a minute ago and they told me that they are not a consolidation company. I told them that I have a debt for 16,000. They told me that they can get my debt company to settle for 9,800 and they charge a 15% fee. Does this sounds okay? I do not want to consolidate, I want a debt settlement company. I heard when these consolidation companies pay for me it hurts my credit score.

Answer: Believe it or not you can do this yourself. You can call the companies that you owe money to and talk them down in the amount that you owe. Sometimes you can get them to settle for as little as half of what you owe…set up payment schedules and you are good to go. This is really all that these companies do. You can save yourself the trouble of getting another party involved, they also attach themselves to your credit report and damage your credit further.

Question: Are there any debt consolidation loans, which are available for people on benefits?

Answer: Before you start going into consolidation loans, make an appointment with the citizens advice bureau who may be able to come to agreements with the companies you owe money to. This wont cost you any fees.

When you are looking for help in getting your monthly obligations under control, you have many different choices on what kinds of financial companies to choose from. In the end, the decision you make on which company to go with will greatly impact the quality of that decision.

When you go to a bank for debt assistance you will be offered the loan programs that they have, and then you will be asked to choose from one of those programs to find the one that best fits your situation. A bank is not necessarily set up to do credit counseling, and the associates at a bank are very knowledgeable people but they also have several other types of financial solutions that they sell along with debt consolidation. In that case what you are getting is a representative who will help you based on their limited knowledge, and they will offer you solutions based on their company’s limited selection. In that case, you are getting a debt assistance loan but you cannot be completely sure you are getting the right solution for your situation.

A debt consolidation company is made up of professionals who spend their time understanding the products and programs they have to offer, and they also spend a great deal of time understanding the various situations in which their programs and plans are appropriate. There may be many different kinds of solutions that would be best for your situation, and only a trained and experienced debt professional can really differentiate which of those options is best for you and make a recommendation based on their personal experience.

Deciding to get debt help is a smart move, the next smart move to make is be certain that the debt assistance you are getting is given to you by a trained and experienced professional. Having someone sell you a debt consolidation loan just for the sake of having it may not properly address your situation.

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: Need money for debt consolidation and home repair on a new purchase and I have damaged credit?
I recently purchased my home and now have plumbing issues that are not covered by my insurance. I have some equity, but cant seem to get approved for anything, maybe I am looking in the wrong place. Help!

Answer: Expect to pay higher than normal interest rate if you are able to get a loan at all to consolidate your debt… but trust me, getting a loan from less than reliable sources can cause a lot of grief in the long run

Question: What are the benefits of doing debt consolidation instead of bankruptcy? Any advice or sites to visit?
It is true that bankruptcy is going to show on my credit for the rest of my life? They are asking for $600 for a monthly payment and I cant do that amount. What can I do? I don’t want to do bankruptcy.

Answer: Bankruptcy stays on your credit for 10 years. If you go with a debt management company then your credit can go down but in the long run will start to increase as you make your timely payments. The other thing you can do is a debt settlement. That means that a company will negotiate with your credit cards to pay off half the balance and consider it paid off. you must be aware though that your credit cards are not getting paid until at least the half is accumulated.

Question: What is the best non profit debt consolidation company to use?
I have a friend who needs help and I want to make sure he gets the best company to help him.

Answer: The best one I know of is Consumer Credit Counseling Services. They are the largest and oldest non profit credit counseling service in the country.

Question: I was wondering if debt consolidation is still an option after charging off with my creditors?
I believe my accounts are now w 3rd party and law offices. It has been a year since I have been able to make payments. I am considering bankruptcy, but want to check out other possibilities.

Answer: Find non-profit credit counselors and talk to them whether there’s anything you can do at this point. Many credit counseling organizations are nonprofit and work with you to solve your financial problems. But beware — just because an organization says it is “nonprofit” doesn’t guarantee that its services are free or affordable, or that its services are legitimate. In fact, some credit counseling organizations charge high fees, some of which may be hidden, or urge consumers to make “voluntary” contributions that cause them to fall deeper into debt.

Question: Is debt consolidation a bad thing?
Does a consolidation loan look bad on credit? I need to get my life together. I am under mountains of debt, with no hope of getting out of it without some kind of loan. I could not mentally handle a bankruptcy. I need advice please!

Answer: Debt consolidation can be a great way 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.

There is a chance that using debt consolidation services might affect your credit. Some debt management programs, like credit counseling, show up on your credit report. Some solutions, like debt settlement, don’t show up on your credit report, but by definition cause late payments. Most debt consolidation services are there to help you get out of debt, not to sustain your credit report or credit score, so you should prioritize what you really want in seeking debt consolidation help.

Question: What’s the difference between refinancing and debt consolidation?
I want to refinance and include my home equity loan and get extra money for a new car. What is the right option?

Answer: Refinancing reduces your current payments and you often can get money. Debt consolidation is combining loans together. So, refinancing is what you want.

Question: Found a home that has equity, is there a lender that will do first mortgage and debt consolidation in one loan
I have debt that I want to consolidate into a home purchase, since I found a home that is priced well below appraised value. Since there is already equity is there a lender that will do a first mortgage and second at the same time? This would reduce my debt to income and put me into a better financial situation since I would only have one payment would be lower.

Answer: By getting a second mortgage you will be at a higher interest rate and introducing a 2nd payment, so it would be like having 2 mortgage payments. Albeit the 2nd one is probably much lower. You should just negotiate a lower down payment and get a larger 1st mortgage.

I would consult a mortgage broker, it is much easier dealing with 1 broker then hunting for a lender. Let the broker do the negotiating for you. They usually find a better rate anyway.

Question: Any options besides Debt consolidation?
I have about $23,000 total in credit card debt. I have great credit just too much. Total it 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: Find someone to reduce rate to 6%. That is the key to paying that $23,000 off as fast as you can. Get a 2nd job for a while to speed up repayment.

Debt consolidation is capable of combing various forms of debt into a single manageable loan with a fixed schedule of reasonable payments. Companies specializing in this program have proliferated in light of recent economic events. Numerous of these companies claim the ability to lower interest rates and negotiate settlements with lenders on behalf of consumers. Selecting one company among the multitude in which to place trust can be a daunting proposition. However, there are several verifiable qualities which constitute a good, legit debt consolidation or management company.

To begin with, research each considered company on the World Wide Web and also consult the Better Business Bureau, specifically. A reliable company will be registered with the BBB, and, therefore, any consumer complaints against the company will be readily available. Also, direct feedback should be requested from any considered service. When validating such companies, the consumer should also be wary of newly started companies and those with little practical experience and feedback available.

To continue, friends or relatives may have had similar debt experiences and be able to recommend an effective one. In times of economic hardship, there is no shortage of people struggling with finances, and there is no shame in sharing helpful knowledge.

There may be an adequate company within the local area; however, moving farther out of one’s comfort zone may be necessary. There are debt consolidation companies throughout the country with online presences. A trustworthy service will respond to online queries in a professional and timely manner without spamming your email or making outrageous claims.

Above all, the consumer should compare multiple options and allow consolidation companies, which are for-profit organizations, to compete for business. A good way to do so is to select three companies which have been validated and meet the goals set for financial recovery.

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: Can an Internet payday loan ever be rolled into debt consolidation?
I am getting killed w/ interest since I can’t pay the entire thing off immediately, and consolidation only seems to work for credit cards. Is bankruptcy an option?

Answer: Yes, you can roll this into your total. However, why don’t you just try to work a little harder, spend a little less, and just pay off the payday loan.

Question: I need to know a debt consolidation company for payday loans?
I need to pay these check advance places but I need help. Do anyone know of a debt consolidation company that will do this?

Answer: I don’t know of any that handle this type of transaction because it leads to legal action because you have written a hot check.

Question: Can you get debt consolidation while still under bankruptcy?
I have some bills that are outside my bankruptcy and I want to get this debt consolidated before they start to garnish my pay check.

Answer: Why didn’t you simply include them in the bankruptcy? Its wise to ask your bankruptcy lawyer before taking any such measures as the courts are technically supposed to manage any assets you have during a bankruptcy. Better move would be to go back and include them into the bankruptcy if possible.

Question: Where is the best place to go for a debt consolidation loan that won’t hurt my credit?
I have a ton of revolving debt (mostly credit cards) and just bought a house 5 months ago so I don’t have much for collateral. I’ve already been denied by a bank so is there anywhere I can turn to for consolidation purposes that isn’t going to kill my credit? I want to consolidate my high interest credit cards onto a lower interest loan and need suggestions.

Answer: You are headed in the right direction. Go to another bank, and another if they say no. The wrong thing to do is give-up. Make sure that whoever you go to provides money, if they have a fee that you have to pay up front, they are a CON.

As long as your interest is under 12.5% you should accept it, even if they place a lien on your house. HOME EQUITY LOAN is good for you, it is deductible on the taxes. “Good credit.com” might be able to help you.

Question: Is there a type of debt consolidation for payday loans?
I’ve met with a lawyer to start to file for bankruptcy. The two main components of my debt are a car repo, which for some reason I still owe around $6000, and some payday loans, which I owe around $3000. I’m trying to find a way around bankruptcy, if any, does anyone have any ideas?

Answer: Bankruptcy should always be a last resort. Have you tried to make payment arrangements with the creditors. (payments you intend to keep) They will usually be anxious to receive monthly payments, because if you go bankrupt they may get nothing.

Question: Have you ever heard of debt management (not debt consolidation) and if so, do you think it is beneficial? Why?

Answer: You’ve recognized you have a problem and that is always the first step. There are certain debt management companies who have been cited for fraud. Be careful who you choose. Look for any complaints filed with the BBB before paying for the services of debt management company. Debt management services can be expensive and may not produce the results you need.

Try the suggestions given at www.MoneyExposed.com. If you are committed to reducing your debt, you don’t have to spend thousands of dollars to do it.

Question: Can someone refer me to a reputable non-profit debt consolidation company?
I’m in debt and am looking for some help to consolidate. I am looking for a company that is reputable, preferably one that someone has had success in dealing with.

Answer: Take Charge America, they had the lowest fee at the time I looked. They were fair and nice to work with and I just finished paying off a large chunk of previous debt. It feels great.

There are no agencies that are completely funded by the government. A consolidation loan will combine all debt into a single low payment. Agencies that provide consolidation loans are regulated by the state. The government does not fund any consolidation loan company, however, the government does provide resources and regulates the lending agencies that will be handling the loan.

Many people confuse a government grant with a loan. The major difference is that a grant does not require repayment. However, grants are difficult to obtain and applicants must meet every requirement. If you are in need of a consolidation loan, talk with your current financial lender. They may be able to give you further information on applying for specific government grants, as well as information regarding a consolidation loan at a low interest rate.

Many agencies will offer counseling services. These services may be funded by the government. The counseling is usually referred to as debt management or consumer credit counseling. These services can help people manage their current debt while helping them to avoid incurring further debt. The service can also help rebuild credit that has been damaged by a high amount of debt.

The most important thing to know about an agency is whether they are non-profit. It is recommended to only deal with a non-profit company. Nonetheless, there are trusted and reputable for profit companies that are also recommendable. This assures individuals that the company has their best interest in mind and is not looking for a way to make money. Non-profit organizations receive their funds from various sources. In some cases, state government may provide grants that help fund the consolidation loan.

On the other hand, private services use their own resources and are usually more accessible than the organizations previously mentioned.

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: Can you tell me which is better, debt settlement or debt consolidation?
I want to try to pay off the debt in approx. 3 yrs. I do care about my credit score, but at this point I want to payoff the debt as soon as possible.

Answer: They aren’t really the same thing. Consolidating your debt won’t mean you have to pay it. It just means they make it more manageable for you to pay over different periods of time.

As long as you are making steady, full payments on time, your credit score won’t go down. In fact, it could help your credit score because it establishes you as a responsible loanee. Making on time, constant payments will keep your credit score in a good spot. But watch out for interest rates. The longer it takes you to pay off, the more interest you accrue and the more money you end up owing.

Question: How do I find a legitimate debt consolidation loan?
I am looking to take out a loan to pay off about $4000.00 in credit card debt. Unfortunately, my credit score is pretty low. How do I find a reliable place to borrow money from? I understand that my interest rate will be higher. I’m just not sure where to begin looking or where to start for that matter.

Answer: Try the bank you deal with or your credit union. You may want to re-consider, buckle down and make the payments. $4k is not that bad. Contact your creditors and discuss your situation with them. They may be willing to work out an alternate payment plan for you.

Question: How can I pay off my bad credit without a debt consolidation service?
All of my credit debt sums up to $5,600. The largest one in this group is about $1,600. What’s the best way to go about paying this off? I tried a personal loan and couldn’t get one because of my bad credit history.

Answer: A personal loan does not pay off debt. It just moves it from one institution to another. You have to change the habits that got you into this mess in the first place. That involves living within your means. You need to reduce your spending and/or increase your income. And use the savings to pay down your debt.

Question: How good is debt settlement over debt consolidation? Is it a more reliable method? ?
What I am interested to know is if Debt Settlement really works and if you know of anyone who has been through it.

Answer: Debt consolidation means you intend to pay your bills. Your credit suffers a little bit, but eventually you pay everybody.

Debt settlement means you don’t intend to pay your bills. You stop paying them and when they are about to sue you, you ask (or the debt settlement people ask), will you take 50% and consider this to be payment in full? The other 50% is canceled (it’s income to you). The debt settlers tell you so pay them instead of the people you owe and they keep a lot of the money you send them as their ‘fee.’

Question: Who are the best banks / lenders to go to for 75k debt consolidation loans?
With 150k income, and a 400k mortgage with no equity we want to consolidate 75k in consumer debt. We have a good credit rating, just too much debt. What are our best options and who can we go to for help?

Answer: Generally, the only way any financial institution will do this is with a Home Equity Loan.

Finding a $75k unsecured personal loan would be next to impossible and, if you did, the interest rate may be higher than the credit cards.

Question: Can anyone suggest a good, reputable debt consolidation company?
My fiance and I live in Ohio and I’m trying to help him find a good debt consolidation company. He’s gotten some suggestions from a person he works with, but the place he talked about sounded a little less then acceptable.

Answer: CCCS was awesome. My wife used them before we were married. They will deal with the credit card companies and other debtors. If someone is bugging you about late payments or anything, call them and they will take care of them. It is a non-profit organization also. There is a monthly fee that does towards their operating fees and other things to keep them running, but they were very helpful.

Question: Are there any legitimate companies that can help you with debt consolidation?
My husband and I have about $23,000 in debt and are considering going to one of the many debt counseling companies that we see advertised. Can they really help by working with the credit card companies ? Also do they all charge a fee and how do they work? Refinancing our home is currently not a option.

Answer: There is only 1 that I would recommend and that’s Consumer Credit Counseling Services they are the largest and oldest non-profit credit counseling service in the nation and have offices in most major cities.

They will lower both your interest rate and monthly payments, I used them several years ago and was debt free in 36-months.

Question: Does anyone have any info on debt consolidation loans?
To make a long story short in exactly 1 year my husband and I went into $11,000 in credit card debt. I make every payment on time but sometimes can only make the min. payments and we have 6 credit cards. Does anyone have any info on debt consolidation loans?

Answer: Go to any lending institutions and ask them about debt consolidation each of them, try to survey how much interest they offer to your debt. Then compare the lower is the best. Now all your 6 credit cards will be in one loan so it will be easy for you to pay on time. Here is another option pay the highest loan which is the highest percentage in interest like store cards, after eliminating that then the next until you finish paying then off . Anyway you’re’ doing ok in paying min. you’re’ still in good standing as long as you pay on time.

When I started to look closely into Debt Consolidation Companies, I was shocked to realise just how many scams and underhanded tactics were being used to ‘hook’ the unsuspecting victim right into their financial nets.

Many Debt Consolidation Companies I fear, are preying on the vulnerability of people caught in a financial nightmare and have no idea where to turn or to whom.

For instance, they push the term ‘non profit’. Sounds great for the customer doesn’t it? Well, take it from me, the FTC and the IRS is investigating many companies for their supposed ‘non profit’ status. Do not literally think that the organisation is not going to make any money out of you. They probably are!

The other main concern that was bought to my attention, was the pressure put upon the sales team to meet targets. It is almost forcing sales personnel to be dishonest and unscrupulous just to get the sales.

Finding a Debt Consolidation Company that had every box ticked on my list was virtually impossible (notice I said virtually). It seemed that if they were particularly good in one area they were poor in another. So what should you look for?

The main thing you should always look for is advocates for the service (satisfied customers willing to endorse the products/services). Only by speaking or reading their reviews can you ever truly know if a company is worth it’s salt.

Remember, it’s no good being taken in by the ’sales pitch’ of a debt consolidation company, after all they can say anything positive to draw you in – it doesn’t mean it’s necessarily true! Trust the public, they are the one’s that have experienced the service.

There are many forums on the internet where people will tell of their experiences with debt consolidation companies. These are a wealth of knowledge, and a little homework done up front could save you a fortune in the future.

To find out the Best Debt Consolidation Company Reviewed and for more detailed unbiased advice and information on Debt Consolidation Companies and all aspects of Debt Consolidation visit http://www.debitconsolidation1.com

Debt Consolidation FAQ:

Question: What is the best debt consolidation company for private and student loans?
Got private bank loans and a couple student loans. I don’t want someone to scam me for consolidation. What company should I use and what’s a good rate?

Answer: Among the number of companies operating for consolidating student loans in US, it is really difficult to find the one, that is genuine & not part of some scam. Loan Approval Direct, Sallie Mae, Next Student, Credit.com are some of the recognized consolidating companies providing services for many years.

Question: Is Debt Consolidation the Best Way to Go and If So How Should I Go About It?
I am in about $20,000 in debt and I was thinking about consolidating all of it into one monthly payment. If I do decide to do it, I really would like to know how everything will show up on my credit report after everything is said and done.

Answer: Pick your stiffest interest rate debt.. and concentrate on paying it off first.. all the while paying minimums on the rest. Repeat the process until done. Seeking credit counseling can REALLY hurt your credit score.

Question: What is the best debt consolidation service to use?
I’m looking at a lot of credit card debt and its beginning to become too much for me. What services, if any, are the best to use when looking to consolidate? FYI I have about 7 different credit cards with some substantial amounts on them!! Help Please!

Answer: Consolidation is the best solution available to the credit cardholders to improve their future credit. People go for debt consolidation for many reasons: prolonging the loan period from 5 – 15 years and reducing the interest rate. Consolidation allows you to go for a loan with lower interest rate than the one you are currently paying. Besides it simplifies the loan repayment as you are paying only one lender in place of various payments to different lenders.

Question: How do I tell if debt consolidation is legitimate?
I want to consolidate my debt. How much can I expect to save an how high should the fees be? I don’t want to pay the councilor just to find out he is pocketing the money.

Answer: Read ALL fine print. You should take a little time to contact the Better Business Bureau and see if there are any negative comments or if the person even exists. Do the math involved. The purpose of debt consolidation is to save a little money, and a lot of headaches. There are several non-profit organizations out there. There is CareOne, and they show commercials all the time. Just don’t resort to consolidation loans because they can be crooked as hell.

Question: Has anyone had a good experience with debt consolidation/credit counseling?
I am not referring to a consolidation loan, I am refer to the services that take your bills and lump them into one monthly sum. If you have had a good experience, which company did you use?

Answer: Consumer credit Counseling is non-profit. They are very good. They have contracts with all of the credit card companies that provide much lower rates. Avoid the companies that state that they will negotiate your balances down, they will ruin your credit and will take much longer. Plus the credit card companies will still come after you anyway.

Question: How can I find debt consolidation thru the govt and not for profit company?
I have heard bad things about debt consolidators. The gov’t has a program to help but I don’t know how to find them – any ideas?

Answer: The Government does not have a program for debt consolidation. There may government resources that will help with your utility payments, etc. . As far as your consumer debt, such as credit cards, dept. store cards, loans, etc you have to apply for a dept consolidation loan through a loan company or a bank.

Question: Are there any legitimate debt consolidation companies out there that are not rip-offs?
I am looking to consolidate a large chunk of debt, and I am hoping to lower my interest rate to 14 or 15%. Do any of you have any experience, and what might you suggest?

Answer: Consumer Credit Counseling is a very good company (non profit).

Opt for a debt consolidation loan: The easiest method of getting a debt consolidation loan is to utilize the equity of your home. Equity of your home is calculated and determined by the difference in the amount you have paid and the amount you owe. If the amount you have paid is more than the amount due, you can use it as collateral. This allows you to borrow money on lower interest rates. Besides, you also get tax benefit on this type of loan. Consult your tax advisor before opting for this loan.

Question: Is there any option for debt consolidation if you are NOT in default with good credit but no equity?
Are there less risky unsecured financing options for those with good credit outside local banks who want secured credit? We want to pay off debt at lower interest than credit cards currently held. Any options out there besides all the scary ones?

Answer: I work in insolvency so I come across this everyday! The only way to do it is if you keep transferring the balance onto other cards. If you have a lot of cards though it’s very risky and a lot of hassle. It’s generally better to just pay off as much as you can every month as you won’t pay as much interest!
You could always take out ONE low rate credit card for a few months to use for your living expenses and then use your income to pay back the other cards. It depends very much on what you owe on them but in my job id really advise that you pay them off asap and never use them again unless for emergencies or you can afford to pay off the whole balance every month!