Finding Debt Consolidation Assistance

What is debt Consolidation?

The truth about debt consolidation is that it is a very serious step. It is a good option under desperate circumstances but you should get as much assistance as you can before doing it. Debt consolidation allows us to combine two or more different payments or make payments over longer periods of time in exchange for a lower monthly payment today. Sometimes this can help us to avoid bankruptcy or have some extra money at the end of each month. Pretty much any form of debt can be consolidated including credit cards, car loans, credit card, retail debt, and second mortgages and home loans. The most practical forms of debt consolidation are rolling unsecured lines of credit like credit cards into a secured lines of credit like on a house or a car loan. Be aware that even if your interest rate goes down, you could still be paying more interest over the life of the loan and that the loans will generally take you longer to pay off.

Will it solve my problems?
No, debt consolidation assistance can only solve a short-term problem. You will have to dig a little deeper to find out what actually caused the problem. Every problem has a reason and each is a little different. Knowing what caused the debt problem will help you prevent it from happening again.

How do I choose a good debt consolidation company?
Choose a company that has been in business longer than 10 years. Also see if your friends or family know of anyone they can recommend.

What to avoid when looking for good debt consolidation assistance company?
If it sounds to good to be true it usually is. Consolidation companies that promise a lot typically deliver very little. Avoid companies that promise to settle your credit cards for a fraction of what you owe especially if you have good credit. Sometimes these companies will ‘take over payments’ by not making payments for six months and then getting the credit card companies to settle for less. Then they make their money off their fee plus the difference between the actual settlement price and the settlement price they tell you. Not only is this dishonest but,it ruins your credit for a very long time. You can also be responsible for the taxes on the unpaid amount and you may be sued for it later.