Archive for the ‘Debt Consolidation’ Category

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Consolidating Credit Card Debt March 31st, 2010

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Among the advantages of credit cards is their convenience. It is however far to easy to be quickly overwhelmed buy credit card debt and can be extremely difficult to get out of again. One way that is commonly used as a starting point for getting out of debt is consolidating credit card debt.

If you are one of the many people struggling with credit card debt the following information could prove helpful to you.

Now, the trick to using credit cards responsibly is avoiding unnecessary spending. Just because you have a credit card does not mean you should use it frivolously. Buying what you want when you want without considering the consequences will pretty much guarantee excessive debt. A credit card should only be used when necessary and of course even then, only if you can pay it back right away.

If however you are already in serious debt with your cards, the first thing you have got to do is stop using them. Maybe you think you’re already so deep in the hole that continuing to charge on your accounts couldn’t possibly make things worse, this is 100% wrong. It’s the worst thing you can do.

To get control of the situation, stop using them cards. Then figure out how much you owe altogether. Now begin paying more than the minimum required payment. Try to overpay as much as possible. A credit card will NEVER be paid off if you only pay the minimum required.

This gives your creditors the impression you really do want to pay your bill. It shows you’re not only willing to pay, but that you intend to pay it in full. Pay more and pay on time. If you do this the interest will stay low and your debt will begin to shrink. It can be difficult to do this with multiple accounts however, if that’s your situation, a debt consolidation or balance transfer may be the option for you.

Another thing to avoid is offers that give you the option for skipping payments or having your minimums reduced to zero. These are just ploys by the credit card companies to get you even more deeply in debt.

If you do your research, stay positive, and bear in mind what you’ve learned in the process, you can get out of debt. Be disciplined and responsible and you’ll be on your way.

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Credit Cards Solutions – What a Debt Consolidation Company Can Do For You? Is it Really For You? March 30th, 2010

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The credit card industry is approaching the bottom the financial hole. Many of the credit card companies are going out of business. The crash of the housing market, followed by the economic recession, created the circumstances for the unsecured credit collapse. New businesses are getting started around this crisis. Those are “debt consolidation” and “debt elimination” companies. They both feed on the paralyzed credit card industry. Those “debt consolidation” businesses are in some kind of symbiosis with the credit card lenders.

When you talk to your lender about your financial hardship and ask for help, they refer you to a non-profit company (those are the debt consolidation companies, masked as a lamb). Non-profit sounds very noble. You go for it and put your life in their hands. They offer financial education, debt counseling and debt management. You have heard it all, but you hope for something extraordinary.

What actually happens when you sign up for this “consolidation” services? Here it is:

1. You provide a list of all of you credit cards and balances.
2. They talk to each credit card and lower you interest rate (less than 10%, but never 0%).
3. They tell you how much your new consolidated monthly payment will be.
4. You pay additional fee for the service (about $50 monthly).
5. You cannot miss a payment, because you will be dropped out of the program.
6. You cannot use the credit cards anymore – they are considered closed.
7. You end up talking to all of your credit cards and on top of it, with the new middleman.
8. When a credit card is paid off, the funds should be directed to another card. It doesn’t happen the right way if you don’t keep a close eye on the process.
9. Sometimes they can miss a payment on a credit card (it happened to me). The credit card lender still calls you.
10. Sometimes they can make a payment even if the credit card has been paid off!
11. Your lenders continue sending the statements to you. You have to forward those statements to your middleman to keep them up to date.
12. You end up with more paperwork and less results. The difference is that you pay for the newly created mess $50 every month.
13. They cannot lower your balances.
14. You have to be happy. If you are not happy and drop out of the program, you will be punished by all of your lenders. The interest rates will skyrocket up to 30% (I had one with 32.99%). You cannot prove that they did not do a good job. It is always your fault.

What will happen if you decide to use your own services? I assume that you can write checks and not rely on someone else to do it for you.
1. If you miss a few payments, your lender will offer the same program to you (even better – you can easily negotiate a zero percent interest rate).
2. You are in control and know where your money goes.
3. You save money and develop a self-confidence. You can take charge of your own financial affairs.

I really cannot comprehend why those debt consolidation companies exist. They do not do anything for you. On the contrary – they create more damage and chaos. Their product is a promise of “bright financial future”. The result is a big disappointment.

The best way to solve your debt is a settlement. And yes, you can do it yourself. Expect another article about this matter.

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Non Profit Debt Consolidation Refinancing March 25th, 2010

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Consumers with a huge amount of debts with creditors need to be aware that there are always some means of refinancing their debts. One of the ways to do so is by using the services of a non-profit debt consolidation refinancing company. Many people do not know what this debt consolidation refinancing really is. Ever since it was introduced some years back, this service has done much to benefit troubled consumers who are in serious need of assistance in solving their financial crises.

Refinancing is known to benefit those who would want to lower their interest rates at least by 5-8% of their current rate of interest. The most common reasons why people wish to refinance may include lowering their monthly payments, changing from an adjustable to a fixed rate loan, taking cash out of their current home equity, and eliminating private mortgage insurance.

Debt consolidation refinancing is where the debts or loans are consolidated and the cash for the consolidated debt comes from refinancing through the debt consolidation refinancing company. Credit cards, car loans, student loans, revolving credit, and other debts that can be consolidated will make up the debt consolidation refinancing. This is a good way to consolidate debt because the mortgage is by far the cheapest money that a consumer will ever borrow.

It is much to the advantage of consumers where the companies handle the loans by consolidating them through negotiations with the creditors, set a lower interest rate, and opt the payment through the refinancing by the mortgage, a secure source of cash. This goes back to the principle objective of the companies being the keepers of the conscience of the consumers, to safeguard their financial status and keep them from having to declare bankruptcy for not paying their debts. Much credit is given to them as they are non-profit and help their consumers who are in need of help to manage their finance by giving them the best option of getting the best cash source possible to pay for their debts.

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Non-Profit Debt Consolidation Agencies February 28th, 2010

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The merger or combination of debts, whether they are credit card bills, medical bills, unsecured loans, or collection accounts, is known as debt consolidation. Consolidation of debts is done to simplify the task managing outstanding debt by making payments to a single creditor rather than several different ones. Various agencies, which have a special team of professionals, experts and advisors, provide debt consolidation services.

Persons looking to reduce their debt, secure a mortgage loan, avoid bankruptcy or simply free up extra cash may require debt consolidation services. Numerous agencies help people consolidate their debts either through debt consolidation loans or credit card debt consolidation. People can pay off their high interest credit cards, consumer loans, etc. with these loans, thus enabling them to consolidate their different debts into one easy, low interest monthly payment – i.e. simplification of various debts into one loan. Credit card debt consolidation is costly as it carries a high rate of interest. On the other hand, debt consolidation loans are preferable as they are cheaper and help increase a person’s credit rating.

Due to the broadening of the financial market, the number of agencies and institutions offering debt consolidation services has rapidly increased. However, there are some of them who work on a non-profit basis, offering free debt consolidation services or debt solutions, with some pre-conditions, enabling debtors to consolidate their obligations at no charge. They also offer some of the best deals for debt consolidation loans, with low interest rates, low finance charges, and zero or low late fees through their connections with various banks and other financial institutions.

Debt consolidation services and loans are offered to almost everybody, even to people with bad credit scores. The process for securing a loan for debt consolidation starts with the calculation of the total amount of debt one needs to consolidate. Once this is done, the person can apply to various agencies that offer consolidating services. These organizations can be easily found on the Internet. The value of the collateral offered will determine the amount of loan that can be provided. However, like any other loan, a debt consolidation loan can also be taken without collateral. These agencies process applications for debt management and quote the amount of loan to be offered, along with other terms and conditions. This is known as a ‘debt consolidation quote’.

Non-profit agencies offering debt consolidation services classify such services based on the need and purpose of the loan or according to the person’s credit rating. These classifications include Bad Credit Debt Consolidation, Student Loan Debt Consolidation, Credit Card debt consolidation, and Debt and Bill Consolidation among others. The non-profit debt consolidation agencies also cater to student loan debt consolidation and bad credit debt consolidation.

Non-profit debt consolidation agencies work with the primary function of enabling debtors to achieve financial freedom by assisting them in getting debt consolidation loans. They help debtors resolve their financial obligations with integrity and simplicity, by restructuring their monthly payments and reducing or eliminating the interest rates and other related fees and costs.

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Clearing Your Debts – Budget Assistance By Green Path, Michigan February 28th, 2010

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Green path, in Michigan is a non profit and a free debt consolidation firm. When it concerns with controlling your finances, these debt consolidation companies provide us with a number of services.

Budget customized plans and free counseling for every individual are provided by green path.

The budget assistance is done individually for each person so that it fits their lifestyle. To get connected with them you need to answer a few questions in the beginning regarding the debt you need to repay and also how much you normally earn. After these few steps you will be allowed to meet a certified credit counselor with whom you can speak about your options. Things that you will need to take will include statement from all your creditors and also credit report copy. Green path provides you with a facility to buy a credit report just in case you do not possess one.

A plan of action and a budget will be given by the counselor after going through all the available options. At the end of it you will have two options. You can either choose to clear off your debts by paying through green path or you can carry on by paying it yourself.

All your doubts regarding debt consolidation will be cleared readily by green path if you join any debt management program through non profit and free debt consolidation in Michigan.

You will however need to pay a fee for pre-filling bankruptcy in green path. For anybody who is contemplating on bankruptcy is needed by the law to look for bankruptcy counseling before they will be able to file. Your counselor can get creditors to waive fees, lower interest rates and also stop collection calls and letters. This will let you pay off the balance much faster than you expected. You might also be offered a discount on your debit itself. If you are still being disturbed by the collection letters or calls after 90 days, you will need to inform green path about the creditors.

All your payments will be consolidated into a single payment to this firm. All your payments will be sent to your respective creditors through green path. For people who need to clear their payments to different creditors at the same time, this will be a convenient option. There will be a rearrangement done so you have a payment plan that is made easier. This ensures one convenient date for payment. Once you are through one of these programs you will feel much relieved.

You will receive form green path every month the amount you paid to them and how much they sent it to each of your creditors. Credit counselors will be available to clear your doubts. This firm will work in par with your creditors to put an end to foreclosure, repossession and also utility shut off.

Credit counselors know that our car and our homes are the most valued possessions. Hence they make this their priority when they calculate the distribution of the money. They provide you with help so that you get back to normal.

Green path takes enough care to see to that you make timely payments for each month. This will give a hike in your credit rating. An increased credit rating is very important for future loans.

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