Debt Consolidation Articles [dot] Net

This is not a paid review of First Consumer Debt Consolidation.  This is just some thoughts on their process and results.  I have not personally used their services.  I could not find their established date so I don’t know how long they have been in the debt consolidation business.

The first thing to keep in mind is there is no magic bullet, no matter who the company is.  It takes discipline, time, and patience to reduce your debt.  And it will probably take a lot longer to get rid of it then it did to accumulate it.  That is the best reason to stay out of consumer debt in the first place.

They make the right claims.

Monthly payment reduction of up to 60%
One affordable monthly payment
Reduction and elimination of high interest rates
Erasing late fees and finance charges
Imrpoving credit reports by re-aging past due accounts.

And it those pie in the sky promises that draws people in.  In Article on MSN
gives three things to watch out for.

1. The Hard-Money Loan - This is where the debt consolidation company gives you a loan to pay off all of your debts and then you pay them.  It gives the illusion of lowering your payment, but often times your interest rate is far above what it was and it will take even longer to pay it off.
2. Debt Consolidators Who Promise to Take Care of Everything -
   

   To desperate ears, this might sound like an ideal solution, especially when you talk to these people and they scare the bejeezus out of you. I interviewed two, Cambridge Credit and Counseling Services and Integrated Credit Solutions. Each offered similar services, and I don’t recommend either of them. The senior credit counselor I spoke to at Integrated told me, in grave tones, that it would take me 379 months — or 32 years — to pay off my debt. With their services, however, they would “save me 27 years,” and I could pay off my debt in just 53 months, or about 4 1/2 years.That’s funny, because when I plugged my debt into the MSN Money Debt Consolidator — a less biased source, since they ain’t getting no fee from me — they said I could pay off my debt in 41 months, providing I make slightly higher minimum payments to each card: a total of just $60 extra per card.

3. The Balance Transfer Trap - These are like those “free” money checks you get from your credit card company that just wants to help you out.  Yeah Right!!!.  Generally, these are designed to trap you into even higher rates.  They give you a teaser rate with a short duration and than a ton of rules to follow to maintain it.

You are usually better off on your own.  For psychological reasons most people suggest paying a little bit extra on the lowest balance card. Once that is done, take what your were paying on that card and add it to the payment you are making on the next highest balance.  Depending on the size of your debt balance, it may take your 4 1/2 years to 6 years, but you can do it.

As far as First Consumer Debt Consolidation, they do have some reported happy customers.  You are welcome to check them out, just remember the tips above and don’t get swept away by fantasy promises.  Here is link to their site.

For any program to work, establishing a good credit record is key.

Understanding Clearing Up Credit Card Debt

When you have come to the point that you see that your debt is completely out of control and you find that a lot of it is simply high interest credit cards, and then you should act quickly to take care of the situation. The thing to focus on is that you really must work on credit card debt elimination because the goal is to completely rid yourself of the debt and to stay away from future debt. The best way to do this is to go for a credit card debt consolidation loan in order to stop from paying several different high interest rates. With the credit card debt consolidation loan, you will be able to pay off all of your creditors and make one low monthly payment.

This means that you will be able to cut several years off of paying back all of your creditors and you will finally be able to have a secure financial future. Not only the credit card debt consolidation save you years of payments, but your monthly payments in the meantime will generally be a lot less then before. This is because instead of paying back several different companies you are only making payments to one company. This is why it is such a good idea to consider credit card debt consolidation.

How To Get Approved

While your credit is somewhat of a factor in getting approved for credit card debt consolidation, it is generally a lot easier to get it done because they are aware that you are in a bad spot and therefore may have taken hits to your credit. So do not be afraid to contact someone about a credit card debt consolidation. The first place to look is that of your bank as they would probably be able to offer you the best interest rate possible. The thing is though they may not as easy to get a credit card debt consolidation through. If they do not work out for you then there are always other options.

If you are looking for other places that can possibly help you with a credit card debt consolidation loan then you could always pay a little attention to the television. That is because with the way our nation’s market is right now, there is an overload of people needing help through a credit card debt consolidation loan. This means that the commercials for places offering such services run a good bit on the television and you can get their information from there. Just call for a credit card debt consolidation program just as quickly as possible so that you can be on your way to a brighter future.

If you are interested in finding out more information on credit card debt and credit card debt consolidation then click the links.

2nd Mortgages can be another option for consolidating debt.

Research at The Debt Line has shown that up to 1 million people are on the verge of declaring themselves bankrupt as they struggle to cope with thousands of pounds worth of debt.

Bankruptcy is an option that often has to be considered when an individual cannot pay their debts as they fall due. A first time bankrupt with debts will generally receive their discharge one year after the date of the bankruptcy order. Short Term Loans may give you the time you need to avoid bankruptcy.

Bankruptcy is the most drastic method available for dealing with debts you cannot pay. It can however set you free from overwhelming debts so you can make a fresh start, and makes sure your assets are shared out fairly amongst your creditors. However there are many implications of bankruptcy. During your bankruptcy you will be subject to several restrictions, which can be avoided through an alternative to bankruptcy such as an IVA. Anyone can go bankrupt, and there are different insolvency procedures for dealing with companies and for individuals who become bankrupt.

Applying for an IVA is a regularly looked at as an avoidance from bankruptcy. The IVA enables you to cut your debts to an affordable level and clear them over a fixed period. The compromise should offer a larger repayment towards your debt than could otherwise be expected were you to be made bankrupt. You can even take out a fresh mortgage while in an IVA. What’s more, it is a totally private arrangement - nobody needs to know about it apart from you, your advisors and your creditors. An IVA ensures that your home is protected and your job is not at risk and with The Debt Line an IVA can write off up to 75% of your debts.

There are so many advantages of an IVA. For example, there is not the stigma or the publicity that normally accompanies bankruptcy and the debtor can continue to trade in a business to generate money. It can give the peace of mind to have a fresh financial start.

The implications of bankruptcy are simple. Some of these disadvantages are: loosing control of your assets, not being able to act as a company director (if you wish to do so), being publicly examined in court and your credit being affected for many years after the annulment. It seems that as far as The Debt Line are concerned, the bankruptcy route could be very much avoided.

One in 8 of those with five-figure debts say they are ‘quite likely’ or ‘very likely’ to declare themselves bankrupt. Also, with an interest rate rise looking more and more definite, these figures are expected to grow. With the help of The Debt Line a growing number of people will be finding alternative ways to get themselves out of debt.

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Are you looking for debt consolidation or debt management? For more information on debt management and bankruptcy, you may visit http://www.thedebtline.co.uk/