If you're still in high school, as rich as Croesus or a favorite of Lady Luck, perhaps the term debt consolidation wouldn't even ring a tiny bell to your ears. But if you're like the rest of us, with a huge number of bills to pay month after month, creditors to alternately hide from and beg, then I'm sure you know what debt consolidation is all about.
But just for the heck of it, let's assume that one of this article's readers has been sleeping under a rock and has no idea what we're talking about. But the fact remains that he does need a little help financially. Well, debt consolidation is the process of accumulating your bills for one month, adding them up and giving them over to the kind debt consolidation specialist who's willing to help you for a teensy weensy price. Instead of paying off some, disregarding the others, you get to pay just one flat rate every month and that's it. Finish. Sounds wonderful right?
And because I'm a good person, I'll discuss the merits of debt consolidation and the numerous ways it can help you.
The first important thing that debt consolidation can help you with is getting your creditors, bless their nagging souls, off your already aching, heavily burdened back. We all know how these creditors can be nasty at times. They're good at semantics and etiquette, I'll give you that, but a threat is still a threat, albeit nicely worded. The phrase "to avoid taking legal actions" never cease to make us shudder, doesn't it? But that's when debt consolidation come in to help you. With your permission, they take charge of your creditors. You need not see them again anymore. Big help right? Big, big help!
Now, the next form of help that debt consolidation companies provide you with is part of the program you'll be working on with whoever your debt consolidation specialist is. One of the questions they'll ask you is just what kind of help do you need. Do you want your monthly payments to be significantly lowered? Do you need help to keep your interest rates low? Do you require help in talking your bank manager into giving you an extension on the deadline of a loan you've taken? The help you'll get from debt consolidation depends on the program you're going to take but rest assured that what you want, you will get.
It's not however a bed of roses with all debt consolidation companies. Sometimes, they help you the other way around. If you had the misfortune to make business with an unscrupulous debt consolidation firm, then that firm may just help push you into further bankruptcy. One way to avoid this is not choosing online debt consolidation companies and not releasing classified information about yourself unless needed.
I've said this before but I'll say this again. In the end, it's
what you want that matters. Those outstanding bills do not signify the end
of the world for you. Where there's a will, there's always a way,
albeit sometimes rocky. You alone can help yourself and if you think debt consolidation
is the way to do it, then so be it. But if you're hesitating a bit and
you think that you're better off without external help and relying on
yourself, then that's a good thing too.
7 Ways to Spot a Credit Repair Scam
If you've recently had an application turned down because of bad credit, you know the importance of good credit as well as anyone. Having bad credit can make life a little inconvenient. You might find yourself paying high security deposits or getting turned down for credit cards, loans, and even jobs.
Credit repair services look very attractive when your credit is damaged. Many consumers who've used these companies have found themselves out of hundreds, even thousands of dollars, with no better credit than when they started. Credit repair scams are rampant and it's up to you to recognize them. Read 7 Ways to Spot a Credit Repair Scam.
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7 Ways to Spot a Credit Repair Scam originally appeared on About.com Credit / Debt Management on Tuesday, July 27th, 2010 at 00:56:07.
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...(more)12 Reasons Your Budget Isn't Working
Are you about to give up budgeting because you can't get your budget to work? Check out these 12 reasons your budget isn't working before you throw in the towel. Usually when budgets go wrong, it's because of the method, not the budget itself.
Budgets are an essential tool to getting out of debt and staying there. So don't give up on your budget just yet. Try to figure out what's not working, fix that problem, and give your budget another try.
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12 Reasons Your Budget Isn't Working originally appeared on About.com Credit / Debt Management on Sunday, July 25th, 2010 at 02:02:18.
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...(more)Beware Email and Phone Credit Card Scams
Credit card thieves come up with more clever ways of tricking you into giving your credit card information. They like to pose as your credit card company, calling or emailing you to alert you to trouble with your account. Be suspicious any phone calls or emails you receive from someone claiming to with your bank or card company.
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Beware Email and Phone Credit Card Scams originally appeared on About.com Credit / Debt Management on Saturday, July 24th, 2010 at 00:09:39.
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...(more)The Debt Collector Could Be Checking Your Facebook
If you tell the debt collector you're about to file bankruptcy today, you probably shouldn't post pictures of your new Corvette tomorrow. Otherwise, the debt collector could use that information against you. The Arizona Daily Star report tells of a the debt collector who discovered information on Facebook and used it to confront a businessman who'd lied about his inability to pay a $17,500 debt. That confrontation got him to pay up.
There's nothing in the Fair Debt Collection Practices Act that prevents debt collectors from checking your Facebook or other social networking page. Fortunately, they can't use it to reveal that you owe a debt.
The best way to keep debt collectors off your Facebook page is to make it private and visible only to people you know. Of course, telling the truth about your financial status won't hurt either.
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The Debt Collector Could Be Checking Your Facebook originally appeared on About.com Credit / Debt Management on Tuesday, July 20th, 2010 at 23:06:02.
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...(more)Could This Be the Best Cashback/Balance Transfer Card Ever?
How does this sound for a cash rewards deal? Five percent cashback on gas purchases, two percent on groceries, and one percent on everything else. What about a 4.99% interest rate on balance transfer for two years?
This is a real credit card offer, from a real bank, but I must admit, there's a catch - you must be a member of the Pentagon Federal Credit Union. The good news is - there are seven ways to join the credit union and one of them could apply to you.
Read our review of the PedFed Platinum Cashback Rewards Card to learn more about the credit card offer.
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Could This Be the Best Cashback/Balance Transfer Card Ever? originally appeared on About.com Credit / Debt Management on Thursday, July 15th, 2010 at 03:00:22.
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