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You can find two kinds of debt consolidation services; profit debt consolidation and non profit debt consolidation. The best place you can go is for a debt consolidation company to get rid of your debt. Non profit debt consolidation is a type of debt management program that exists for restructuring debts with high interest rates into a single loan avoiding the need for going to another loan. Thus, you can avoid many monthly payments and it also helps you have control of your financial state. As profit debt consolidation agencies charge higher rates, the best alternative is to go for Non profit debt consolidation service.
Cash loans, bank loans, IRS, credit card bills, student loans and medical bills are some of the debts that need non-profit debt consolidation solutions. If you are sure to make your regular repayments, debt consolidation mortgage is the alternative among other available options. They are offered against collaterals such as home or any other asset of value and are also tax deductible. Another option for debt consolidation is Consumer debt consolidation. On behalf of borrowers, the consumer debt management companies in this case negotiate with creditors for a consolidated payment at lower interest rates.
The non-profit debt consolidation company receives a share of amount paid by the debtor to the agency and this share is the main supporting source for the non-profit group and on the other hand the profit debt consolidation company does not receive this share. Even otherwise, this share percentage has dropped considerably and there is not much of difference between the two types. Alternatively the debtor is provided with the same monthly payment that are minimum with reduced interest rate whether it is a for-profit or a non-profit debt consolidation company.
You have a better edge over others when you go for a non-profit debt consolidation company. You can find a number of debt consolidation companies today. Therefore you have to plan for an extensive research prior to deciding a debt consolidation company. By all means, the safest way is to choose a non-profit debt consolidation company. A non-profit debt consolidation company guides you with the best possible options for debt consolidation and makes you debt free as soon as possible. Unlike a profit making debt Consolidation company, the motive of a non-profit debt consolidation is not to build personal profit at borrower’s expenses.
A great advantage you get with a non-profit debt consolidation company is free debt counseling. This service helps you to be aware of the debt consolidation techniques and the value of finance and debt management. The main purpose is to avoid such debt situations in future and also for rebuilding your credit rating. Thus, choosing a non-profit debt consolidation company is an excellent move. However ensure that your company is really a non-profit organization.
Internet is one of the best sources of getting information about the debt consolidation companies and you can also choose the best company. You can find many non-profit debt consolidation companies that offer different debt consolidation services. You can check out the websites of the respective companies. Ensure that the chosen debt consolidation company can meet the total financial requirements related with your debts. After short-listing a few companies, you can visit various web forums, blogs and reviews on such companies so that chances of any fraud can be avoided.
Watch the video related to debt consolidation
Credit Card Debt Settlement Program Netdebt.com Your probably wondering? how we can help you? If your concerned about your debt your defiantly not alone. Millions of Americans have debt problems due to credit cards, medical expenses, and unsecured bank loans and other causes The key is to control your debt and not let it control you. Let me explain how. If you become a client you will be referred to a law firm that specializes in debt negotiation. These attorneys work on your behalf, not the …
Help answer the question about debt consolidation
Can I get a debt consolidation loan with bad credit?I would like to get a debt consolidation loan for my outstanding debt from closed credit cards, old utility bills, etc
I have student loans, but I would like to consolidate them separatley and not through another loan.
Also, I have an auto loan, would the loan be able to cover that as well?
Please, real answers, and no opinions/judgements.
Thank You.
9 Comments »
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I have been a reporter and author on the debt industry for over 4 years. I have reviewed several companies in regards to Christian debt consolidation as several of my readers have asked this exact question. The main thing to look for is a company that offers several options, a free consultation, and has an excellent BBB rating. I have tried over 35 different services and this one has been the best above all others:
http://www.ChristianDebtConsolidation.com
You will notice that it has a legitimate website URL and is not being used for marketing purposes like the other answers submitted to this question.
Comment by Clint P — December 29, 2009 @ 10:37 am
If you have 10k in the bank, why not use half of it on your debt. That would make things much more manageable.
Then get yourself on a written budget and attack the other 7500.
Comment by sherina d — December 29, 2009 @ 11:05 am
Call the hospital and see if they have any programs that can help. Last month when I ended up in the ER with my gallbladder we got put on a payment plan where we only pay off $28 a month until the bill is gone. The surgeons office also worked out a plan where we actually only have to pay half of what the bill would have been (because my dingbat husband cancled our health insurance back in May *smacks head against wall*).
Comment by A B — December 30, 2009 @ 4:45 am
Hi, Jimmy:
First, I already answered a related question, so I've copied that answer below after the dashes.
If your number one objective is to simply improve your credit, you could just wait it out for another 2 years until the debt is 7 years old. You can then ask for it to be removed from your credit report. If this is your objective, then don't pay the debt. Records on your credit report are good from 7 years of last transaction so any payments or charges you make resets that 7-year clock.
Personally, I've never used a debt consolidation company because I've felt capable of trying the same tactics myself. Granted, these companies are professionals and may get special "deals" and privileges that I wouldn't get, but I've still been pretty pleased with my own results.
Before using a debt consolidation company, I recommend trying your own hand at it. Contact your creditors. Before you do, determine how much you can afford to pay in a monthly payment. Even better, if you have some money saved up as a lump sum, you can try to pay them off in a couple of chunks. The more money you can give them at once, the better your negotiating power.
If you're in collections, ask the creditors by how much they'll reduce the total amount owed if you pay now/in 30 days/in 60 days/within a year.
If you're not in collections yet, ask the creditors how much they'll reduce your total interest. Some companies (e.g. Discover used to do this) will even suspend interest entirely while you're in re-payment. Of course, you can't use the credit card during that time, but you're saving money and salvaging your credit.
Good luck!
———————–
There are several benefits to credit card consolidation:
- Convenience (only one or two payments)
- Easier to manage (less likely to forget a bill!)
- Possibly a lower combined interest rate
Generally, when companies help you by consolidating your credit cards, they contact the credit card companies on your behalf and try to negotiate a lower interest rate (you can do this on your own, by the way). Then, the companies can take one of several methods for that single consolidated payment. Options include…
- Financing your debt themselves and then THEY pay your creditors
- Helping you find a financier to consolidate your debt
- Having you roll all of your debt under one of your existing accounts and pay off the others
As such, credit card consolidation does not affect your credit rating. In fact, the results of consolidation are often positive simply because it's easier to manage and you may pay less interest.
All this being said, I've never used a consolidation agency because I never wanted to pay the fees. Instead, I contacted my creditors myself and asked for the best possible interest rate they could give me, and asked what kind of arrangements I could make to manage debt. In general, they all worked with me.
By the way, here's one thing to consider when paying off your debt: Bad credit falls off your credit report 7-10 years after your last transaction. So, if you have a liability that is 6 years and 10 months old, carefully consider whether you pay it off or not. If you touch that account at all, even if it's to pay it off, suddenly that 7-year period is renewed. So, the choice you have to make is: Do you want something that was bad and is now paid on your credit report for another 7 years, or do you just want it gone entirely?
There are some ethical questions there, too (e.g. if the debt was yours and you were above 18 at the time, you should pay the debt to be ethical). These are questions that only you can answer. But, when working with a consolidation company, make sure they only consolidate the accounts you want them to touch.
Good luck.
Comment by jimmyaven — December 30, 2009 @ 5:22 pm
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.
If you want a place to start your investigating, there's information and listings for debt consolidation providers on the page listed below. You'll probably find something of use there:
http://axalda.info/debt-consolidation.html
Comment by sonija — December 30, 2009 @ 8:49 pm
Sometimes, people have a lot of different creditors to pay. For example, multiple credit cards, car loans, lines of credit, etc. Debt consolidation companies will pay off these creditors and consolidate it all into one bill, sometimes lowering your payments once everything is consolidated.
This can be a useful service for those who are disciplined enough not to rack up more debt once they do a consolidation of existing debt.
Comment by John W — December 31, 2009 @ 1:28 am
Most of the debt repair/consolation/settlement companies want their fees up front and leave you credit trashed.
Check nfcc.org for listings legit non-profit credit counseling services. They can help you set up a budget and work out clearing up your debt.
You can tackle your debt yourself by putting every extra penny on the highest interest rate debt, while making minimum payments on the rest. When the highest is paid, move to the next, till they are all paid off.
It will take 2 or 3 years but if you work at it, you'll be out of debt with a good payment history.
Comment by Russ M — January 1, 2010 @ 10:38 am
Stay away from any that charge a fee.
Most if not all of these companies will trash your credit.
What they do is not pay your creditors for months and then try and settle for less under the threat of bankruptcy. No special skills. They just don't pay.
Your creditors do not have to deal with these people because it is your debt.
Also, If they don't pay you creditors. You, and you alone are still responsible for the debt. Your creditors will sue you and not the company you hire.
Comment by Ruffus — January 1, 2010 @ 1:02 pm
Nope. Most charge insanely high fees and most don't work. You are only going to improve the situation by actually paying attention to your finances. If your situation is dire – try Dave Ramsey. He's hard core but his plan works – but only if you grow up and get serious.
Comment by blcross03 — January 1, 2010 @ 7:26 pm