Debt Consolidation Services – Triumph Over Your Finances

Debt consolidation services will put you back in control of your finances, and they can help put you on the road to financial independence. How can a debt consolidation company help you? Well, let’s figure out what the real problem is behind your financial troubles.

You most likely do have the cash to make the payments on your debt’s principle amounts. The main problem is that credit card firms and lenders assess high interest rates and charges, so despite making minimum payments or more, there is no way to make any progress. Now if you remember that these scenarios are occurring across all of your accounts, it’s natural to feel overwhelmed with debt, even though you’re trying to get out of it.

A debt consolidation business will alter all of that. They establish one monthly payment for you, so that interest isn’t accumulating over several accounts. This one payment allows you to budget well and reduce your debt. Further, they will negotiate with your creditors on your behalf to settle your accounts for less than what you actually owe, so you can get ahead financially a lot quicker.

You can get back your financial freedom with a debt consolidation company. Find out how they can help you.

Debt Consolidation Services FAQ

Question: Are there any online debt consolidation services that are worthwhile?
Are there any debt or credit card consolidation services that are easy to use and secure and worth the time?

Answer: I have been trying this for the past year and it has not worked for me. So I think they are a waste of time with too hefty of fees. But that may be because I am jaded with the process. I have to declare bankruptcy now from trying to use one of these settlement places.

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: I would go with the Credit Repair, after all that is what you are trying to do is repair your credit.

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 consoldation means taking all your existing debts and making them into one.

For example, if you have 2 credit cards maxed at 5000 a piece, paying 19% interest on them, the service would pay them off for you, and instead you would owe them $10000, at say, 12% interest.

The services can be helpful, but go with a reliable one and make sure you read and undertand 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: Debt Consolidation Services?
I have some credit card debt that I want to get rid of and my wife and I are considering using a debt consolidation service. What are the best companies out there in debt consolidation?

Answer: 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: Do those debt consolidation services really help? And does it hurt your credit?

Answer: It will ruin your credit. They will get your credit cards to lower or eliminate interest, if they are willing to participate. When I tried this some of my cards eliminated the interest, but one of them actually raised it. There was a $3/month fee per card. My net savings per month was $46. I ended up filing bankruptcy 6 months after I started this program. I did have a friend that went this route and got out of debt, but all of her cards participated.

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: If my company credit card goes to collection can I use a debt consolidation service to pay it off?
I ended up using my company credit card for personal use while on medical leave. I was not able to pay it off completely right away and it was sent to a collection agency. I have a very nasty debt collector calling me all the time now (which is to be expected) but her story seems to change so I’m not sure if she’s being honest or using scare tactics.
I contacted a debt management program and am working on paying off the debt over the next 12 months. Meanwhile, this woman keeps calling me and now she’s apparently (according to her latest voice-mail) set up a conference call with my corp office tomorrow.
I’m just wondering if there’s some reason using a lump sum settlement won’t work on a corporate card?

Answer: Debt Settlement, also called debt negotiation is an arrangement between a debtor and a creditor to repay a debt generally for a for a lowered payoff amount. When a debtor is not able to pay the debt any more for any reasons, debt settlement is the only option that remains.

Generally, only unsecured debts, like those accrued with credit cards , can be negotiated for settlement. This is because of the fact that there is no security attached with unsecured debts. Hence, the lender can’t repossess anything. On the other hand secured debts, like home loans, mortgages, car loans etc. have a collateral attached to them and can be repossessed by the lender if a default on debt occurs. So, there is no debt settlement or negotiation with secured debts.

Question: Has anyone that has ever used Nationwide Asset Services(Debt Consolidation) tell me about their experience?
My parents are in this and from what they are telling me it sounds a little fishy to me. I am worried that they are getting burned. Over the last six months they have already paid over a few thousand to these people with no results. Just wondering if anyone has anything to offer on the subject.

Answer: This sounds like debt settlement, not a true consolidation. Debt settlement has a marginal ability to reduce judgments and rarely results in a substantial credit score increase. Plus, the fees can be amazingly excessive. Not to mention, you must pay taxes on forgiven debt ($600+) which is automatically reported to the IRS.

I recommend checking with the Better Business Bureau to ensure that they have a satisfactory rating and are free from an unusual pattern of complaints. If you have been on their plan for a while, you may just want to finish as fast as you can. By this point, your credit will have already been trashed and you would have already paid most or all of the upfront fees.