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a debt consolidator program to help you with debt reduction or even
debt settlement
A debt consolidator program can ease your financial strains. A
debt consolidator programs works to achieve debt reduction for you
and depending on the situation and the debt consolidator program,
you can also ask for a debt settlement. A debt consolidator program
often offers debt consolidation, debt reduction, debt settlement,
and debt negotiation. You pick the debt consolidator program that
is best for you.
Sometimes overlooked is the ability to use a home equity loan as
a debt
consolidator. If you own a home and have equity then this may
be an option for you. But, that does mean that you have to put up
your home as collateral in case you cannot make payments. This type
of debt consolidator can be risky for some people. You can also
get free debt consolidation
help from a specialist and ask them about debt reduction.
On Top Of The Debt Consolidator Program
You have probably heard some horror stories about certain debt
consolidator program. Well, that is because a lot of them are true.
We have put together some information that should help you make
your decisions about choosing a debt consolidator program easier.
Beware of debt consolidator programs that advise you to include
the following debts.
- Debt consolidator programs
that say you can include the I.R.S. and Student Loans in your
Consolidation.
- Debt consolidator programs
that quote rates between 0% and 9%, instead of quoting the current
rates being offered by each individual creditor, along with their
Guidelines, which are subject to change on a daily basis.
- Debt consolidator programs
that quote Payoff times of "4 years" or "48 month"
instead of giving you the individual Payoff times.
- Debt consolidator programs
that offer dramatically lower payments. The fact is, creditors
have strict guidelines which all debt consolidator programs must
abide by. If, in fact, you do need a dramatically reduced payment,
your creditor will generally work with you on a 'HARDSHIP"
basis. It's best to avoid this, if at all possible, as you will
be paying for many, many years.
- Debt consolidator programs
that misquote you on the above are "lowballing" you,
to get you into their program, collect additional money up-front,
and then will send you what they call a "Bump Up" letter.
Remember, they each have their own guidelines as to Rates, Terms,
Re-Aging, and the time frame allowed for all the above.
- Many debt consolidator programs
say you may include all unsecured debt in their Program. Below
are some of the most important issues that need to be addressed
when consolidating your debts, whether you have good credit and
or current, or if you have damaged credit.
Which creditors should not be included in a debt consolidator program?
STUDENT LOANS --They will not reduce your interest rate, which
is already low, or change your due date. They will NOT give you
more favorable terms. There are changes being contemplated right
now, offering better terms, and we advise you to contact the institution
you are currently paying, for these new terms.
Some credit unions and department store, who may already have low
rates, or will not lower them any further, will not work with you
(us) to change the due date, will continue to assess penalties,
and will not re-age your account, as most companies will, according
to their own guidelines. All creditors require a specific % of your
current balance.
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