Debt consolidation services can merge all of the debtor's outstanding debt allowing for a single monthly affordable payment against the entire outstanding debt. It can reduce the stress of trying to juggle the payment of multiple monthly bills while dodging persistent debt collectors all wanting a piece of your assets. Sounds like quick, easy, non-pharmaceutical headache relief, but how can it be done?
If you have run up significant debt on a credit card or credit cards it would be advisable to try to transfer that debt to one credit card offering a lower interest rate. Some cards are offering introductory offers of zero percent for the first six months and others will even give a new customer the first year at zero percent interest. The interest savings at zero percent can be significant and is worth the time spent to apply for the card and transfer heavy balances where they will cost less if they cannot be paid down entirely. It is important to remember that even with all the transferring of balances, the debtor will only have six month to one year at a reduced interest rate before the inevitable credit card debt transferred will make its return appearance at a new and much higher rate of interest. The final analysis must be that transferring credit card debt from multiple cards to one a lower interest card will likely provide only a temporary fix at best but it will serve to create a situation of payment simplicity in that there will be one monthly payment to only one card service and inherently protect against "late fees" and other credit card penalties for late monthly minimum payments.
A free, government and non-profit debt consolidation program is readily available to consumers seeking debt consolidation advice but how to navigate the options and avoid the scams and snags to sail into a safe harbor where financial life is defined by one lower monthly loan at a better interest rate is not a task for the unwary. These companies often charge 15% of the applicant's debt as their fee and initial payments do not go to pay down the debt but to pay the program's upfront fees. Many consumers find the law firms offer the most fair debt consolidation help programs and ninety percent of law firm programs successfully close program loans.
Roll all existing debts such as outstanding consumer loans and credit card debt into one, single consolidated "new" loan which would be held on more affordable terms such as at a lower rate of interest. That is the objective but making that a reality may not be easy. If the debtor has become a credit risk the debt consolidation negotiation company may promise to give a lower monthly payment rate you're your interest on the loan may more than triple and multiple fees will be charged to your account making the whole process just another nightmare. It may be a more prudent resolve to borrow against your car or car loan, take out a home equity loan if you own a home, remortgage the home for an amount including consumer debt amount, try to get someone to give you a personal loan, and finally try to renegotiate your existing loans.
After reviewing the many "debt consolidation" options available on the market many consumers may reasonably come to the conclusion that they don't know which way to turn. They may thinking they are already in enough debt related jeopardy and not wishing to instigate situations involving additional stress and headaches. It is time to call a Debt Consolidation lawyer. A debt settlement attorney can provide real help at this point. An attorney can point out the best and safest options for handling the financial problem you are wrestling down before the thing gets you in a hold you can't escape.