Welcome to DebtConsolidationRatings.com, the No.1 resource site for useful debt consolidation tips and reviews. When it comes to availing yourself of debt solutions, you can choose from working with a credit counseling company, a debt settlement program, or you can opt for a debt consolidation loan. When all else fails, you still have bankruptcy as an option, but you should always remember that filing for bankruptcy should be your very last effort in repairing your debt issues.
Option 1: Get credit counseling services
Credit counseling services provide you with a method for gradually paying off your bills over a period of time. You will work with a qualified agency who will work with all of your creditors. You make a payment to the counseling agency and that payment is paid to your creditors over time. There are interest rates applied to the fees you will be paying, but the counseling agency will work on negotiating acceptably low rates of interest for you.
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While this option sounds promising, there are some disadvantages associated with this type of service and understanding the cons associated with debt counseling can help you make a better decision about whether or not such services are your debt solution. First of all, make sure you choose a credit counseling service that is timely when it comes time to distribute the payments you have made. If the company makes slow payments, it does not hurt them; it hurts you by affecting your credit rating. You will also need to bear in mind that not every single creditor is going to be willing to lower the interest associated with your debts. You will still have a few bills that will remain high, the monthly fees you are paying to pay off your debt can also be high, and it can take anywhere from five to eight years time to be totally debt free.
When you use debt counseling services you can expect your payments to be right around what you would have been paying for your monthly credit card bill minimums. These programs, unfortunately, have a very high rate of failure too: only a quarter of all people that use the services complete the program. What’s more, participating in these programs can show up on the credit report; lenders may view your participating in debt counseling negatively later on.
Option 2: Consider debt consolidation
If you are thinking of getting a loan for debt consolidation, you will have to be actually able to qualify for a loan in order to make use of this debt solution. You will probably need some form of collateral like property in order to qualify. You will still be in debt and you will have to pay interest on the loan you do get. If you do not pay the loan back in a timely matter you can lose your collateral. You are also subject to transaction fees and it can take you years to pay off the principle and interest of the loan. Learn how to consolidate debt on your own, or choose a good debt consolidation company from our comprehensive listing of reputable debt consolidation companies.
Option 3: Consider debt settlement services
Many consumers are taking advantage of debt settlement offers. These programs will help to reduce your overall debt by negotiating any and all of your unsecured debts. Sometimes you will have to pay back pennies on the dollar that you owe. You are helped to devise a reasonable plan of repayment. You can find yourself free of debt in sixteen to thirty-six months. Your overall bills can be lowered anywhere between forty and sixty percent overall. You are expected to pay the company a monthly fee. Once enough money accumulates, that money is than divided up amongst your creditors.
Option 4: Consider bankruptcy
This option is a last resort debt solution option. This will mar your credit report for seven to ten years time. If all other options are not feasible, this may be your only solution. You run the risk of losing some property, depending on what you file, and you will be ineligible for credit for a long time. Bear in mind that this option is better than doing nothing at all; you will eventually have to face your debts and deal with them.
To get started, read debt consolidation articles written by our experienced debt consolidators and consultants, which will help you determine what’s the best option when it comes to solve your particular debt problems.
Next step, find a reputable debt consolidation company for an evaluation of your debt situation. Most debt consolidation companies offer first consultation for free. You can look up reputable debt consolidation agencies through our Debt Consolidation company directory. You can read the brief introduction and customer reviews about popular debt consolidation companies on our website, and pick the best company that’s right for you. If you decide to consolidate debt on your own, read essential debt consolidation articles available on our website for better understanding of Debt consolidation and other debt solutions.
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