www.get-debt-consolidation-help-today.com About the Author Francisco Rodriguez Is Debt Consolidation Necessary? Permission is hereby granted to reprint this article as long as proper credit is given including the information and links.
Learn whether debt consolidation may be for you with this free debt consolidation information. There are situations when debt consolidation is just what the beleaguered credit consumer needs and it can eliminate a lot of their financial stress. However, there are times when it may not be the best choice and then other options may be more suitable.
Free Debt Consolidation Lesson 1 - What is It?
Consolidation is applicable to a situation where a consumer may have multiple credit cards or lines of unsecured credit, these usually have very high interest rates and if payments are late then late fees accrue and interest is also applied to those. Consolidation rolls those credit cards up into one single payment and usually this option carries a much lower interest rate. In this way, the credit debt can be eliminated usually in a much shorter period than the consumer ever hoped can.
Free Debt Consolidation Lesson 2 - How Does It Work?
Consolidation can work two ways the first and usually the most attractive option is to assess your financial situation with the help of a professional, and then arrange for a consolidation loan, which pays off the credit debt. This is a more desirable option since loan rates are almost always much lower than credit card rates. This can work for a consumer who has one or twenty credit cards.
The other method though less desirable has worked for some and that is to make out a monthly check to a credit counseling service or management service and let them pay off the credit cards for you. One check covers all of the card debts but the difference in monthly payments may not be sufficient for many consumers to see debt free status and many do not finish this type of payment plan.
Free Debt Consolidation Lesson 3 - When Doesn't It Work?
When a consumer's credit card debts are so overwhelming that consolidating them in any way leaves them with more owing than they can pay, then free debt consolidation will not work. If they cannot repay it, there is no sense in trying to consolidate it.
In that case, the consumer may need to look at options such as credit card debt settlements where a settlement is negotiated with the credit card companies and only a portion of the amount owed in credit card debt is repaid.
Free Debt Consolidation Lesson 4 - It Only Works When You Do It
If you are struggling now, or working on your five-year plan to be debt free, you need to do something now. Consolidation, counseling, or settlements only work if you take initiative and start to work on your debt. Find More Free Debt Consolidation Help ? Tips For Consolidating Debt Issues
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