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Credit Card Consolidation Loans Can Help You Get Out Of Debt

September 23, 2011

Credit Card Conslidation Loans

Credit card consolidation loans can provide great benefit to those who are overwhelmed with their credit card debt. If you are unfamiliar with what credit card consolidation loans are, they are basically a loan that a consolidation company gives you to pay off your credit card bills, and enjoy just one monthly payment as well as what often times come with lower interest and a lower monthly payment.

credit card consolidation loans

Benefits of Credit Card Consolidation Loans

  1. Consolidation will drop the interest rate that you are paying on your credit card debt, as a loan through a credit card consolidation service is a secured loan, which always offers lower interest than that of credit card companies. The money you save in interest can be used towards paying off your bills, money you wouldn’t have had if you didn’t consolidate. Lower interest also equates of lower monthly payments, as the interest rate determines how much you pay monthly, also the repayment terms are usually extended which will drop your total monthly payment.
  2. You only have to pay one payment each month, and you no longer will get calls or call your creditors as your consolidation company does it all for you.
  3. An all an all lower debt total can come out of credit card conslidation loans as consolidation companies often times can negotiate lower payoff totals.
  4. You can also get an even lower rate by using your property as collateral, which is basically the protection for the lender who knows that in the event of default, they take the property, but with lower monthly payments, you will have enough money to pay off your debt.. Also, you don’t have to have collateral in order to consolidate.

Finding Reputable Credit Card Conslidation Loans Service

There are three things which you should check when looking for a provider for credit card consoliation loans, which one or more of them will prove that they are accredited and a reputable conslidation company.

  • They are listed in the Better Business Bureau.
  • Check if they are part of Internal Association of Professional Debt Arbitrators (IAPDB).
  • Also, are they are part of The Association of Settlement Companies.

Who Should Use Credit Card Consolidation Loans?

You want to use consolidation loans if you have few options left, which it is suggested to make a budget first and try to manage your finances, as just like with anything there are negative aspects of credit card consolidation loans. Credit card conslidation loans should be used by those who are buried in debt and their monthly payment are too much compared to what they can afford as well as those who are either behind in their payments, or have flat out stopped paying. Also, if you are having trouble tracking all of your monthly payments, credit card consolidation loans are great to manage your debt.

The Right Time For Consolidation

When it comes to the right time for people to take out credit card conslidation loans, there is a pretty basic explanation for this. You shop around for interest rates that are lower than what you are paying on your credit cards. If interest rates in consoliation companies are higher, than the act of consolidation will not benefit you. Right now, interest rates are at an all time low it is a great time to get credit card conslidation loans, but you can also find out if the time is right by keeping track of the interest rates in the consolidation market.

Finding Good Credit Card Consolidation Loans Companies

To ensure that you are doing service with a reputable provider, you can do one of three things:

  • Conslidate with your personal bank.
  • Or you can call your credit card lenders who will assist you in finding a conslidation company who provides honest service.
  • You can also seek the consultation of a lawyer or credit counseler for information on credit card consolidation loans.

Debt Settlement Companies – 4 To Use

September 23, 2011

Debt Settlement Companies

Debt settlement companies can provide you with great benefits when it comes to your credit card debt, like reducing your loan debt substantially as well as be able to eliminate your debt in a couple years instead of a couple decades. Settlement, also known as arbitration, is done when debt settlement companies negotiate a reduced amount for you to pay off with your creditors and take a percentage.

debt settlement companies

There are many great debt settlement companies out there that you can utilize on your question of debt elimination. We have 5 great debt settlement companies that you can use asap that are described below. To get you more familiar with debt settlement, we will also provide you with how to choose a good debt settlement company as well as the pros and cons that the act of debt settlement can provide you.

4 Debt Settlement Companies

  • Premier Financial – This one is considered to be the best out of all the debt settlement companies and boast benefits of being able to reduce debt by up to 50 percent, no fees at all for settlement and is a company that was founded by a lawyer and they know all of the laws dealing with settlement in all 50 states.
  • Forgetunsecureddebt.com – This is another highly reputable option when it comes to debt settlement companies. Benefits of Forget Unsecured Debt is that they offer elimination of debt in as little as 12 months, no fees for consultation as well as very competitive prices when it comes to service.
  • Cura Debt – Another great option for debt settlement companies to use. Cura Debt offers benefits like enabling up to get up to 40 to 70 percent off debt, get out of debt in as little as a couple of years, money back gaurantee as well as competitive fees at 59 dollars per month.
  • Impact Debt Solutions – This option offers an average debt reduction of around 40 percent, has some of the lowest fees in the industry and has had zero complaints against their service over the past three years.

Debt Settlement Companies – What To Look For

  • Debt settlement companies that are reputable and accredited will be included in the Internal Association of Professional Debt Arbitrators (IAPDB), or accredited by the The Association of Settlement Companies,
  • Avoid the use of debt settlement companies that weren’t established by lawyers, as often times these people aren’t very well versed in laws.
  • Also when looking for debt settlement companies, be sure to find one that doesn’t require that you pay a service fee unless they do get a settlement on your debt, or gives a refund if their attempt fails.
  • Look for service fees that are consistent with what you can afford each month, and better yet search for a company that charges based on the results that they produce for you. So when it comes to payments, look for finding a company that doesn’t require that you pay up front but when they produce the results that they are promising. This will enable you to both make sure they are going to produce as well as proving that they are a reputable company worth dealing with.

Debt Settlement Companies Pros & Cons

PROS

  • Payment reductions by up to 50 percent or more.
  • When you start service with debt settlement companies your credit report will not have a delinquent account listed on it anymore.
  • This method is probably the fastest solution to getting you out of  debt.
  • You don not need to pay for a lawyers services as well as it will enable you to avoid bankruptcy.

CONS

  • When you pay off yours debt, it will come up on your credit score as a settlement instead of a full payoff which can have a negative effect on your credit score.
  • You have to pay taxes on what the settlement company saved you. So if you initial debt was 18,000 and they saved you 8,000 you will have to pay taxes on this 8,000.
  • It will not work unless you are either way behind on your payments or you have stopped paying completely.
  • Many debt settlement companies only offer settlement on certian types of debt.

 

 

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