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

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

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

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

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

Debt Consolidation FAQ:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Debt Consolidation FAQ:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Debt Consolidation FAQ:

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

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

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

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

Question: How do debt consolidation places work?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Debt Consolidation FAQ:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Credit Card Debt Consolidation FAQ:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Most US people are tensed as they are unable to pay off the unpaid sum of money. One of the key payments one needs to make is for his credit card. There are innumerable banks that issue the credit cards and when the money is not paid in time, they start nagging the payer. In some cases, the debtors declare bankruptcy in order to get a debt relief. This is because most of these payments come under the unsecured mortgage. When you file bankruptcy, these are surely written off. Now Obama’s Stimulus Package 2009 has made an attempt to stop this wrong means of getting rid of the payments.

Credit Card Debt Forgiveness

It refers to any process that helps you pay off the due amount but in parts. The payer in such case requests the bank or the lender to allow you some time to make the payments. Then you clear it up slowly and steadily. The best way to do so is debt consolidation.

Here are some details of the same:

· Debt consolidation is almost like refinancing. In this case you centralize all your debts with one bank. This helps you save the money paid as the rate of interest. This also helps you get some personal loan to pay off at least half the amount of the credit card debt. Once you pay that sort of lump sum, the other can be paid in easy installments.
· While looking for consolidation plans for credit card debt forgiveness, you shall come across two types of plans.
· For the home owners the deal might get cheaper & simpler. They can keep the house as collateral security and can get any amount at lower rates of interest to pay back.
· On the other hand, the one who do not have that strong collateral security, would get a big amount as loan at a higher rate of interest.
· In case you take up debt consolidation with your house as the security, the taxes on your debts are written off. This benefit is not even available to those people who get forgiveness of the money from the lender himself. This is because the law treats the spend amount as an income for which you must pay the taxes.

President Obama has come up with Stimulus Package that will focus on providing assistance to low- and middle-income Americans, to check if you qualify for Government Grants
Click Here –> Federal Grant Programs

Government Grants may not be enough, you also need add new income sources. Try the free trial for Google Cash & learn the secret for earning thousands of dollars per month online.
Click Here –> Google Cash Free Trial

FREE Trials are for a limited time only, so get yours today.

Credit Card Debt Consolidation FAQ:

Question: Anyone had luck with a credit card consolidation company? Have you really eliminated your debt?
I’m talking about these companies you hear on TV/radio that ‘claim’ they can negotiate your balances and cut your debt up to half and have you completely out of debt in a few years? What if any companies have you found that have actually done this?

Answer: All I have heard are nightmare stories — my advice to you is run not walk away from any of these companies!!! Example, they will tell you to not pay your bills which in turn will make the credit card companies post all kind of true but awful remarks in your credit report which will lower your score and than the company will try to settle with the credit card company and all the time you are pouring money into them so they can destroy your credit. The best option for debt trouble is negotiating your debts with your credit companies yourself to keep the payments from swallowing all of your income.

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 cosolidation 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 deductable on the taxes.

Question: Is it bad for your credit to use a debt consolidation company?
I owe more than $15K in credit card debt with mostly high interest. This doesn’t even include my student loan payment, car payment and all of my living expenses. I’m living paycheck to paycheck trying to pay them down and it’s moving so slowly – almost barely at all! I have really good credit (still have available credit on the cards and pay more than minimum well before the due date) but I let myself get into way more debt than I can pay back. Should I consolidate? If I do, I’m assuming the consolidation company will pay off my balances at an agreed upon “settlement” – which would hurt my credit, right?

Answer: STAY AWAY from “debt consolidation” companies that promises to cut your debt in half through debt settlement. This is a risky tactic of deliberately ceasing all payments to creditors and forcing your accounts into default to attempt settlements. You pay a monthly fee to a debt consolidator, this entire fee goes towards building a settlement account and to the consolidator’s fees to “settle” your accounts in the future. Your credit card companies will deliberately not be paid so that all the accounts will default/charge-off so that they can attempt settlements at around 50%. If you are current on your accounts, this process will ruin your credit rating for sure. You can never predict how your creditors will respond to the deliberate defaulting of your accounts, they might settle at 50% or they might serve you a summons, take you to court and if they win, you could be looking at wage garnishment. None of these “debt consolidation” firms have the power to force your creditors to accept settlements. Your creditors have the right to refuse these terms and take you to court.

A better 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.

Question: What is the easiest way to consolidate credit card debt?
I have two credit cards that have about $8,000 in debt between them. I am serious about paying them both off, and pretty much will go as far as starving to get it done. It would just be so much cheaper and easier if this was one bill instead of two. I have played the balance transfer game, but at this point it seems like adding another bill would be more problematic than consolidating. I just don’t know how to do it or who to trust.

Answer: Consumer Credit Counseling. They’re nonprofit, and universally recognized. They can usually get creditors to reduce interest. They helped me get my finances right after my ex-wife ran up our joint credit cards and split. DO NOT go with a consolidator that charges a fee!

Question: Is credit debt consolidation really helpful in lowering your bills? Is there a down side?
Have too many credit card bills, I want to lower the charges without damaging my credit.

Answer: If you are thinking of using one of those debt management companies, be extremely careful and check them out thoroughly. Many of those companies may leave you in worse shape than you are now.

Bypass those companies and get a loan on your own to pay off the credit card bills. Not only will you be saving money by not having to pay that company, you will be saving money on interest, since you can probably get a short term loan for a much lower interest rate than your credit cards have.

Question: Are there any legitimate credit consolidation companies?
I’m looking to find a legitimate credit/debt consolidation company. I need to consolidate about $9k in unsecured debt from both credit cards and student loans. None of the payments are past due at this time.

Answer: In truth there are legitimate loans for debt consolidation but not really companies. Most companies doing this are frauds.

Do some careful checking of your numbers. I suspect that the student loan is far cheaper left alone than combined with others. Also 9K of debt is so low you could simply pay it off if you were serious in short order. Consider all alternatives first. Debt consolidation is nothing more than a “con” because you think you’ve done something about the debt problem. The debt is still there, as are the habits that caused it – you just moved it! You can’t borrow your way out of debt. You can’t get out of a hole by digging out the bottom. True debt help is not quick or easy.

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

Answer: Your not solving your problem. Your just relocating it so it looks like it is in check. Just pay off your credit cards and then cut them in half and throw them away. Your still going to have an interest rate no matter how you do it. Your best bet is to try and make as big of a payment as your budget will allow each month and pay them off. I strongly suggest getting rid of them afterward and don’t use them while your paying them off cause you’ll just be adding insult to injury.

Question: In credit card debt-any suggestions?
Real estate was horrible this year and I have gotten into debt w/credit cards. Haven’t been using them for a while but the minimums are killing me. I have done balance transfers and its just not helping. I don’t want to use the house equity and I don’t want to use debt consolidation because it affects your credit. Any suggestions? PS. husband doesn’t know.

Answer: Be honest with your spouse. You will not be able to fix this as long as you’re hiding it from the most important person in your life. He might be mad, but you’re working on ending your marriage if you don’t fess up ASAP. Then the two of you can sit down together and look for spots where you can cut back on spending to work on paying off these cards. You might need to take on a part time job to help pay the bills, but certainly start writing down everything you spend and work on cutting back on anything unnecessary.

Debt consolidation companies work to reduce your monthly payment, lower interest rates, have fees removed, and lump your payments into one monthly bill. Instead of trying to come up with several different payment, each and every month, you’ll only have to worry about one. Debt is so much easier to manage, and pay off, when you have a reliable debt consolidation company working for you.

Worrying about excessive debt can cause a lot of stress, which can lead to depression, marital disharmony, fatigue, and other negative health risks. By obtaining a resourceful debt consolidation firm, you’ll alleviate the worry of paying your bills and literally turn your life around. Bothersome collection calls will come to a halt, and you can feel free to enjoy life again.

Don’t just settle for any debt consolidation firm, though. If you obtain the services of an unprofessional agency that cannot answer your questions adequately, they will be of no assistance to you. You need a reputable agency that will work for YOU and make a positive difference in your financial future. By investigating several options, you can find the one that will work best for you. Here’s some things you’ll want to look for:

- A company with a good reputation that is certified in their field.
- Low rates.
- Qualified debt consolidation specialists that offer personal debt management.
- A company that will work with your specific financial situation.
- A company that is clear with the Better Business Bureau, and has no complaints against them.

Once you have selected a debt consolidation team that you are comfortable with, arrange a one-on-one meeting and work in a financial plan, clear and concise about your credit card debt.

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

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

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

Credit Card Debt Consolidation FAQ:

Question: Credit counseling or debt consolidation? So confused!
My husband and I are in credit card debt of 35,000… medical bills around 1,800 and school loan about 5,600. We are stuck right now and really don’t want to file bankrupt. My question is since we are paying things on time can we even do credit counseling or debt consolitation? I heard that you need to be behind on your debts, is that true? And what is the difference between credit counseling and debt consolidation?

Answer: Be careful, the dirty little secret about credit counseling is that most are actually collection agencies. They collect the debt for the bank, at usually pennies on the dollar, then turn around and get you to pay say 60 cents on the dollar, the difference is their profit.

Credit counselors do NOT work for free, and most make lots of money and are unscrupulous, so be very careful. They promise you the moon but can’t always deliver.

Not all banks go along with the CCC program, and many will negotiate with you directly at a better rate, if you just ask.

There is no simple answer just be careful, and research the company you choose thoroughly.

Question: How do credit consolidation programs work? Are they worth it?
My bf has about 14000 in various credit card debt. Most of it interest. What credit consolidation programs (if any) would be worth looking into?

Answer: Debt consolidation programs can work but it requires research to determine what the programs offer. The best ones offer, which should be included and not a separate fee, counseling or personal finance advice particularly how to establish and maintain a budget. The biggest thing to remember is that for debt consolidation to work a person has to stop using the credit cards or incurring more debt.

Question: Where can I get a Debt Consolidation loan for my credit cards without owning a home?
I am looking for somewhere to get a consolidation loan for my credit cards even though I dont own a home?

Answer: Are you a member of a credit union or do you qualify to join one in your area? If so, check with them about debt consolidation loans. If you can’t join a credit union, talk to your bank or investigate banks in your area that may have loans. There are programs out there that don’t require a mortgage. Typically, they allow you to borrow up to a certain percentage of your salary.

Question: We have $8,000 in credit card debt; we live in GA. What’s the best non-profit credit consolidate. company here?
We live close to Blue Ridge. APR on credit cards are 23%. We are looking for a credit consolidation company that will help us lower APR

Answer: You aren’t looking for consolidation — that’s taking out one big loan to pay off the small loans. You want credit counseling. Check for a NFCC member in your area. These are legit, non-profit companies that offer debt management programs. They don’t settle your debt. The negotiate lower interest and payments so you can pay off your debt.

While in the debt management program, it will be noted on your credit. However, upon completion, that notation will be removed and you will have decent credit.

Question: I have been with a debt consolidation for about 14 months, now I’m being sued by the credit card. What do I do? Do I need to find a lawyer? The debt company is telling me not too. Do I contact the law firm suing me? What are my options as a consumer?

Answer: Debt consolidation? Sounds like your in a Debt settlement plan. Debt consolidation will pay your debt monthly. Creditors don’t normally sue when their getting paid monthly.

You should have a whole lot of money stashed away after 14 months. Do you have any funds to resolve the situation. Is the settlement company contacting the law firm? Have you been issued a summons? If so you need to respond to the summons. If you have been served and you ignore it then you will have a mess to deal with.

Chances are you were mislead when you signed up as a client. Happens all the time, now that you know what the stakes are you need to be proactive and find out whats going on. This is your financial future, you have a right to know.

Question: Need to pay off credit…is a consolidation loan the best way to go?
I am $11,000 in Credit card debt. Would like to pay it down as quickly as possible at the lowest rates possible. NO DEBT CONSOLIDATION COMPANIES!! Was thinking about going to my local bank and asking for a personal loan, but I don’t own a home. What are my options??

Answer: Your best option is to just pay down the cards yourself. Pay the minimum on your cards. Then, starting with the card with the highest interest rate, pay it down first. Once this is gone, pay down the card with the next highest interest rate etc. until they are all gone. This minimizes your interest.

Question: Credit Card Debt Pay Off Advice?
I have several accounts in collections due to late payments and what not. Right now I am in a position to pay off the 8,000 dollars that I’ve accumulated and was wondering if anyone could help me find a suitable debt consolidation company.

Answer: There is no reason whatsoever to use a debt consolidation company if you have already defaulted on your debt.

If you’re going to pay off old-charged-off debt anyway, then you might as well negotiate the lowest, rock bottom settlement you can possibly get, being that the negative charge-off notation is going to stay for 7 years on your credit report, regardless of whether the charge-off is paid or unpaid. …Offer 25%

DO NOT admit in writing to owing the debt…if you do you might trigger a lawsuit against yourself. Offer 25%. Mail them a vaguely worded statement.

Question: Does consolidation of credit debt appears or has a bad effect on credit history?
Is there any way to consolidate credit card bills and past due debt without having any bad effect on credit history?

Answer: The past dues only affect your credit if the credit lender reported it to the credit bureaus.

Maybe you want to hire the service of a debt consolidation organization to help you put your credit card finances back in order but you do not think you can afford them. Worry no more because a non profit credit card debt consolidation organization might just be the answer to your prayers. A non profit consolidation organization offers their service if not for free in a very low and modest price. They usually receive funding either from donations or government. That is why their service is usually free but is not applicable to all. People who really have a tight budget could use the help of non profit organization.

Non profit organizations have been popping out ever since it slowly gained popularity since most people opt to hire their service. A non profit organization works the same as the traditional debt organization. It helps in consolidation of all debts into one payment with mark down interest. They also talk to creditors regarding this new payment scheme and persuade them to agree to a resolution. All concerns by your creditors will be addressed by them. So, if you are one of those who are been constantly harassed by your creditors; hiring non profit organization will definitely be a relief. They serve as your representative and therefore you wouldn’t have to worry about facing your creditor since everything has been accounted for.

Some non profit debt organization also offers counseling usually for free. They will assign you with a financial specialist who will help you to better understand your finances. They will assist you to go about your struggle of financial management. If there is anything you want to clear, they are very much willing to listen and tend to your query.

Since the funding of this kind of organization is usually from donations or government as been mentioned earlier; there will be months that your creditor will receive no payment and this could lead to further deterioration of your credit ratings. In the first place you hired them to help you improve it not to further deteriorate it. But this kind of incidence cannot be prevented since they don’t really have that much funding to cover up for all the expenses. Although, they usually talk to these creditors to personally address the problem.

In choosing a non profit credit card debt consolidation organization one must ensure its legitimacy. A lot of scammers take advantage of people who are desperate to seek help. No matter how badly you need assistance you should still consider that you need to deal with a genuine and legit organization, not just some organization promising you will be out of debt and so on and so forth then they will tell you that their service is for free though they would really appreciate donation to keep their organization running; this is certainly an indicator of a scammer so beware.

Before signing into any agreement; be sure you made a background check first. When you say non profit it doesn’t always mean it is for free. Some non profit organizations do ask for a very low fee just to support their funding and assure you that you will be covered by the service that they will offer. A genuine and legit non profit will not force you to give donations of any form. Just remember to ensure that you are dealing with a credible non profit organization; don’t rush and do your research first.

Being relieved from all debt is what anyone would want. Knowing you have cleared all of your credit card debts will definitely be music to your ears. In the event things regarding your credit card finances just got messed up, you can turn to a non profit credit card debt consolidation organization for assistance. They can certainly help you recuperate from mishandling of your funds.

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

Credit Card Debt Consolidation FAQ:

Question: I want to consolidate my credit cards debt and get rid of high interest rates. What is the best way to do this?

Answer: You would want to get in with a company that is non profit. Other companies charge you a fee for doing this for you, as much as 50.00 a month. Consolidated Credit Counselors is a company I used before, the only problem I had with them is the agreement they have with the issuing banks is to make payments that is 5% of what you owe. That was too high for me so I had no other choice but to do a bankruptcy. In time your credit rating will improve. But by taking action and just not walking away will definately improve your credit rating.

Question: I’ve been subpoenaed for $2000 credit card debt, what’s the recourse if I don’t go?
About 12 years ago, I had 10 credit cards. Through various debt consolidation agencies and extra cash, I paid off most of them. 3 of them I left flapping in the wind because those particular companies kept tacking on exorbitant fees, and the balance rose to double and triple my original credit limit. I haven’t touched any of them since 2002. Of course I’ve received infrequent letters and so forth, but I don’t read them because I figure the statue of limitations is up (or close to being up). Also, the credit cards were opened in NV, I last paid in MA, but now I live in CA. I don’t know where the SOL would be.

Unfortunately, one of them has decided to subpoena me for an outstanding debt of $2000. It may not seem like a lot and I suppose some say I should just pay it, but I don’t want to reactivate it on my credit report and have a negative mark for another 7 years. Incidentally, they didn’t actually serve the papers to me, but to a relative at my last address. No one signed for it or anything. Should I ignore it?

Answer: The papers were served on a relative and you know about it. That company is taking you to court. If you don’t pay off before the court date, and don’t show up at court, the judge will issue a default judgment against you. You have to pay the full amount (too late to protest any excessive or illegal charges by the credit company), plus court costs, plus the company’s legal fees, plus interest. The company then has the legal right to attach any of your assets: your home, bank accounts, garnish wages, or anything else you own. If you have a job, they can find you! Basically, they will track you down and take everything you own.

Question: Has anyone used one of those debt settlement companies for your credit card debts?
They’re saying they can settle for around 50% or less. Anyone ever tried American Debt Settlement Group? Or any other debt settlement or debt consolidation companies?

Answer: Your local consumer credit counseling agency would help you out a lot more than they would and these agencies want your money. My daughter used them and they still got her wages garnished.

Question: Student looking to get out of credit card debt?
I am a student looking to get out of credit card debt. Between two cards I owe about $15,000, basically from spending about 2 years w/ shaky employment and reckless youthful spending.

Right now I am working steadily at a job I love, albeit low paying and not enough hours to make a good amount of money. I am in school getting a supplemental associates degree to the BA I already have. I would just like to know what my best options are right now, as far as credit counseling, debt consolidation, etc.

Answer: Contact your local Red Cross for a referral to the local Consumer Credit Counseling Services (CCCS) in your area. They can negotiate much lower payments and interest rates. They DO NOT negotiate settlements.

They will require you to stop using all credit and to cut up your cards. Your credit report will be updated to “enrolled in debt management.” This does not damage your credit, but it may make it impossible to obtain new credit while you are enrolled in their program….so don’t use this service if you anticipate applying for a new apartment, car loan or mortgage anytime soon, as you would probably be denied while you’re enrolled in the CCCS debt management program…. Otherwise, it can be a very good way to deal with your debt.

Please note that CCCS cannot perform miracles in situations where there is an overwhelming level of debt relative to your income/assets.

Question: Consolidating my credit card debt?
Do you know of a good company that deals with credit card consolidation?

Answer: Chase has a few programs that are low interest rates for the life of the loan. American Express also has credit cards with low interest rates that you would be able to make balance transfers to.

Question: What are my options for paying off large credit card debts?
I have a great credit history and score, never late on payments, and pay more than the minimum due, but I don’t know if I should refinace house, do something with 401k, or get a big loan. I don’t know the difference between credit counseling and debt consolidation, or other options I may have and not even know about. I would love to not have to hurt my credit score. I’m not even considering bankruptcy, just want to get these stupid cards paid off!

Answer: Stop using them and pay as much as you can each month. If that’s not fast enough and you would prefer to pay one bill and have it over with each month, talk to your bank. Let them know what you want to do and they should be able to give you options.

Question: I just found out a family member has incurred huge credit card debt which is past due.
He has become disabled and can’t work. Where do I begin? Anyone had experience with disability/debt consolidation? I know I’m not liable for the debt but I want to help him figure out what his options are.

Answer: Have you sat down and worked out what is owed on each debt? Interest rates? Could he go ahead and pay off some of them in full? Does he have assets that could be sold and immediately applied to those debt balances? Are there household expenses that can be shaved? (cellphone & landline phone, subscriptions, etc.)

Before you sit down with a credit counselor, do the number crunching yourself. It’s important to not expect someone else to do more work than you are (on behalf of your family member.) And you want to make sure they quote you accurate numbers.

I definitely recommend you suspend all cards/accounts. You won’t be able to close them with a balance but at least you can keep him from using those credit cards. Keep just one for emergencies only.

Question: Where can I find a loan to pay off My credit card debt?
I have $10000 in credit card debt. I need a loan to pay this because consolidation isn’t working. Is there a website or something I can go to for this specific reason?

Answer: Never take an equity loan, never take a loan against a credit card debt…take an extra job or two, cut your expenses and live and eat cheaply till you have your debt paid off then cut up all your cards except one. Dave Ramsey is a guru (find him on the yahoo search engine) and he will tell you how to get out of debt. You can also call in your questions.

Debt consolidation has been seen to be the best way to obtain financial freedom. People who have been juggling from one debt to another see this as a way to totally eliminate the problem. Debt Consolidation has been known to have two types, unsecured and secured debt consolidation. Recently, debt consolidation has now been used to consolidate debts acquired from different credit card companies. Unsecured credit card debt consolidation is the type of debt consolidation usually considered as means of handling credit card debts because it does not require collateral.

Unsecured type of debt consolidation offers the same idea as of the secured one. It technically just sums up all credit debts into one easy single monthly payment with no collateral involved. That is why most people think that unsecured type of debt consolidation is their best option. Since no collateral is involved, the debtor will not worry about any repossession. Common collateral used are house, lot and car and is usually repossessed by the time the debtor failed to pay the dues.

This type of debt consolidation has the fastest processing time making it more convenient for debtor to easily get approved. It will surely work to their advantage since no evaluation or assessment is needed before the loan gets approved. Truly a time-saver and hassle-free, with the loan getting approve quickly, the debtor can easily tend to all his credit card debts in the least possible time. The fact that the process is easily approved only means that there is less or no documentation needed at all. You can avoid all the troubles of preparing needed documents and waiting queues. Most debtors if not all target to refinance their credits as soon as possible, so if there is no documentation needed, this will again work to their advantage. With all the benefits being offered by unsecured loans, surely people will be adamant about applying for this kind of loan.

On the other hand, the most foreseen downfall of unsecured credit card debt consolidation is the payment of a higher interest as compared to the lower interest rate being offered by secured one. But it totally makes sense, the fact that there is no collateral involved; lenders are taking a huge risk in lending you the money. To cover this up, a higher interest rate is given. Collaterals serve as assurance for the money being lent but since it is absent in this type of loan, you need to make sure that you have obtained a clean credit history to be considered.

Still the best way to be out of debt is self-control and proper handling of finances. Even if there are institutions that are willing to be of service to those who have been caught in a never-ending spiral of debts, this should not be an excuse for causing such financial mess. The unsecured credit card debt consolidation is no doubt one of the best options to pay off credit card debts; make sure to put into consideration its advantages and disadvantages before deciding to apply. Financial freedom could never be achieved if you do not refrain from the uncontrollable and unwanted spending. Remember that you hold the key to unlock a life without debts.

Learn more about unsecured credit card debt consolidation Find comprehensive information about the best ways to deal with overwhelming debt at http://www.debtconsolidationhelp.com

Credit Card Debt Consolidation FAQ:

Question: What is the best solution for unsecured credit card debt?
No home ownership. Debt settlement vs. consolidation? Too many companies to choose from & they all boost their offers! Scam or legitimate?

Answer: If I understand your question, you are having difficulties making the monthly payments on your credit card debt. Consolidation is not really a good answer because your credit score is probably pretty low right now and if you can get one your interest rate will be pretty high. You also have those credit cards still available and you could (and most people that go this route do) end up running up the credit cards again. Now you have twice the debt and no solution.

There are a bunch of scams out there and a lot of people that will try to rip you off under the guise of repairing your credit. Go with a reputable organization that will help you and not rip you off. I have worked with Consumer Credit Counseling Service for a couple years and they have been great. They can help you work with your creditors to reduce payments and interest and they have educational information to help you to manage credit better.

Question: Do court systems force people who have no ability to pay unsecured credit card debts?
My wife, just out of pregnancy with a newborn, is being sued by Capital One for a $2000.00 credit card debt. We offered to pay the minimum but they refused. I’m unsure if I could even afford bankruptcy. We have a large mortgage, living expenses with no disposable income for any debt-consolidation. Facing pending foreclosure. If we are summoned to appear before the court, what would the court possibly expect us to do except what we could afford to do? What could we expect from the court from credit card company suits?

Answer: Is your wife being sued? Or are there just threats of a law suite. If you were being sued, you would have already received a summons to appear in court, which sounds like you have none.

If you indeed wind up going to court, you can petition the court for a settlement for Penny’s on the dollar. Capitol One will try and get the whole amount and make you believe you have to pay the entire amount, but what they want and what they get are two different matters.

Question: I have 67,000 in credit card debt. I am going to a consolidation/counseling place, how much will my payments probably be a month? I make 97,000 a year but have 2 kids in college so money is tight. And how many years do you get to pay those payments off?

Answer: If you were to pay $400 a month and had to pay only your debt with no interest, it will take you about 13 years. So, stick the interest on top and good luck.

Question: Getting out of high interest credit card debt?
We have a high balance on some high interest rate credit cards. We own our home, I am wondering if there is any tips or info on refinancing and including our credit card debt into the refinance or debt consolidation. I don’t know much about it. How much is normal to be charged for these things? What is a good trustworthy business to go through? What are my options? Am I just going to get myself into deeper debt?

Answer: A home equity loan will be at a much lower interest rate and you can write the interest off your taxes. This will be a delaying tactic unless you change your spending habits.

Cut up the cards but don’t close the accounts it can hurt your credit rating. When you do pay off your cards, they will up your limit, send you checks, etc. Your monthly payment on your equity loan will save you a lot of money, versus the finance charge on the cards. Find a debt consolidation company that is not-for-profit, many states regulate this business.

Question: Debt consolidation will leave you with a huge debt ratio, and close all your credit cards?
When you consolidate debt, it shows all old debts as being paid, etc, but the one new debt ratio, which is the amount being owed to the consolidation company will be huge. QUESTION: Does It lower the credit score to have a huge debt ratio like this?
OTHER QUESTION: and you also want to have say, 3 credit cards, (3 of them is the number you want to have a good credit profile, right), then the debt consolidation companies close your credit cards or do they not? How does it work?

Answer: The temptation is to have lower payments, but that does mean you’ll take longer to pay off the debts, and so you’ll end up paying a huge amount more in interest rates over time. Possibly thousands more.

Be careful–think this through very carefully and do the math.

Question: Debt Consolidation Company Referral?
I’m looking online for a credit card debt consolidation company and would much rather go with a referral from someone rather than randomly choosing one that “looks good.” Any suggestions?

Answer: The Better Business Bureau is a great place to go for referrals. They can show you local agencies that you can visit in person as well as to identify those which have the best record of satisfaction.

Question: Debt consolidation vs just paying credit card? What would you do if you were me?
Which is the better route to take?

I have $21,000 in debt spread out between 6 credit cards. I don’t use my cards anymore and I can probably pay this off in 2 1/2 years if I make $1000/month payments.

I called a debt consolidation company and they are willing to take on my case. They said they can reduce my debt to $11,700 and reduce my monthly payment to $326/month for 3 years but it will temporily hurt my credit score because they will settle with the credit card companies. My credit score is 704-740. I hate to see that happen but I’m kinda struggling.

Answer: Debt consolodation is as bad or worse than bankruptcy and it will hurt your credit for a long time, as most of the CC will report it as charge off.

Question: Does debt consolidation of credit cards lower your credit score?

Answer: If you enter a Consumer Credit Counseling Service (CCCS) plan, yes it will lower your score at first, but if you complete the plan it will raise your score. A CCCS plan is one where you pay them and they pay your creditors. Be careful though, CCCS is reputable but many are not. if you go with an out fit that says they will “settle your debts” for less than what you owe, your score will go down the drain.

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.