Are Debt Consolidation Companies a Good Idea?

People struggling with high amounts of debt are often willing to do anything to find relief. Their desperation makes them perfect targets for unscrupulous predatory lenders looking to make some fast money. That doesn't mean that all of the debt consolidation companies out there should be avoided -- it just means that consumers should weigh all the pros and cons of dealing with a consolidation company and do their homework before making a decision.

There are two ways that you can consolidate your debt. One is with a debt consolidation loan. This is simply a loan that you use to repay all your debts, leaving you with only one loan payment rather than a large number of creditor payments. The goal is not only to get your creditors paid, but save money each month on your monthly payments. Depending on the rates and term of your loan, it's likely you'll be paying less each month than you were before the consolidation. The key is to shop around for the best lender. Some individuals go with a home equity debt consolidation loan, which uses the accumulated value in their home as collateral.

The other way to consolidate is by working with a consolidation or credit repair company. You will first need to gather your total debt. The company will determine a monthly payment based on how much your debt is and how much you can afford. The monthly payment will be sent to the credit repair company, who will use it to pay your monthly bills. One good thing is that you're making only one payment each month, as you would be if you got a consolidation loan. Many of these companies can make deals with your credit card companies to get you reduced rates and save you money on the cost of your debt. Just make sure that the company you are dealing with is in good standing with the Better Business Bureau and is fully licensed.

Debt consolidation companies can be helpful, but they're not always necessary. Often, you can negotiate with your creditors on your own, and work out affordable monthly payment plans. However, if you feel overwhelmed by your finances and want the help, a consolidation company can be just the thing to help you get back on your feet!

Copyright 2006 Jim Sterling - All Rights Reserved


Debt Consolidation News:



US Auto Execs Plead for Congress to Fund Bailout - The Epoch Times

US Auto Execs Plead for Congress to Fund Bailout
The Epoch Times, NY - 32 minutes ago
"The first thing would be that (the US automakers) acknowledge that there is one too many auto companies and that consolidation needs to take place," Chief .
..


US auto execs plead for Congress to fund bailout - guardian.co.uk

US auto execs plead for Congress to fund bailout
guardian.co.uk, UK - 44 minutes ago
"The first thing would be that (the US automakers) acknowledge that there is one too many auto companies and that consolidation needs to take place," Chief .
..


Debt consolidation
Debt consolidation has been in practice over the last few years and has gained popularity because of its potential benefits. By this, you can consolidate all your monthly bills and make a single straight forward payment thus cutting ...


Nigerian governors, govt, experts meet on economic meltdown - Afriquenligne.fr
Abuja, Nigeria - The Nigerian government Tuesday met with the 36 state go vernors and the National Economic Council (NEC), the umbrella body for the nation's Economic Management Team (EMT), towards insulating the economy from the global economic ...


Fitch Revises SunGard Data Systems' Outlook to Negative; Affirms . - PR-Inside.com (Pressemitteilung)

Fitch Revises SunGard Data Systems' Outlook to Negative; Affirms .
PR-Inside.com (Pressemitteilung), Austria - 20 minutes ago
Repayment of the January 2009 maturity and consolidation of GLTrade EBITDA will reduce leverage over the near term. SunGard's recurring revenue model, .
..


debt consolidation loans
house of sterling cash personal credit, salary loan sample letter, debt consolidation loans, personal loan malaysia, pay loans with moneygram, criminal complaints against mte financial, loans using equifax, www 1000 cash advance com...


Credit Card Debt Counseling Explained
Debt management and debt consolidation sound alike, after all, and, in actuality, theyre part of the same desire EUR for consumers to keep hold of an ever escalating debt spiral. Think of debt management as the larger concept within ...


Online Debt Consolidation Applications
People who intend to reduce their financial burdens by consolidating their multiple loans into one, find online debt consolidation services very useful. A mere click of the mouse opens various options for an individual to amalgamate ...


Business Wire - Fitch Rates Carroll County, Maryland's $80MM Consol Pub Improv GOs 'AA+'; Outlook Stable
November 7, 2008 -- NEW YORK -- Fitch Ratings assigns an 'AA+' rating to Carroll County, Maryland's (the county) $80 million general obligation (GO) consolidated public...


11.16.06: Transcript of HP conference call
EURŠ consolidation initiative; Freeing up capital for strategic growth initiatives including sales force hiring; Beginning to deploy capital back into the business in the form of increased capital expenditures aimed at EURŠ..


WRAPUP 5-US auto execs plead for Congress to fund bailout - Forex Pros

WRAPUP 5-US auto execs plead for Congress to fund bailout
Forex Pros, British Virgin Islands - 52 minutes ago
"The first thing would be that (the US automakers) acknowledge that there is one too many auto companies and that consolidation needs to take place," Chief .
..


PR Newswire - Energias do Brasil Reports EBITDA of R$ 350.6 Million in 3Q08
November 5, 2008 -- EBITDA from Distribution grows 16% and manageable expenses before depreciation and amortization record a fall of 14.1% against 3Q07 Net debt...


Fitch 2009 U.S. Packaged Foods Outlook: Sector Stability Despite Weak . - PR Inside
The advantages gained in the weak economy are likely to outweigh the drawbacks for United States-based investment grade packaged food companies in 2009. The recent inclination for consumers to eat at home more often is positive for these companies ...


Business Card Consolidation Credit Debt EUR Why You Should .
A Business credit card debt consolidation will provide all the necessary help for you to pay off your debts. The common practice includes two effective measures that will solve this credit card debt situation. ...


Generation Y hard hit by credit crunch - Stuff
A new business survey shows how hard small-to-medium-sized firms have been hammered by the credit crunch, with commercial defaults up 47 percent in the third quarter compared with the third quarter of 2007. The survey, by credit information provider ...


Auto executives issue dire warnings - Financial Post

Auto executives issue dire warnings
Financial Post, Canada - 13 minutes ago
"The first thing would be that (the US automakers) acknowledge that there is one too many auto companies and that consolidation needs to take place," chief .
..


Debt Consolidation Loans: Yes or No?
On the upside of debt consolidation loans, all debt is included. In debt management agreements, only unsecured debt is considered (credit cards). But in a debt consolidation loan, all debt is considered.secured debt as well as ...


Technorati Tags: , ,