Being in debt is a very stressful situation to be in, I know personally. If you are determined to get yourself out of debt and back into the black it can be done, but it won't be done with Debt Consolidation.
These consolidation loans have problems because initially you need to take out a loan for the full amount you owe and then on top of that you must pay fees to the consolidation company. That means that the total you owe increases.
The second problem is that the consolidation loan itself makes you look like you were bankrupt, because it comes from a third party, i.e the consolidation loan company. This affects your credit score in a big way.
This will severely affect you in the future and completely defeats one of the main reasons for taking out a consolidation loan in the first place - to avoid bankruptcy
There's a far far better route to follow to get yourself free of your debts and that is called settlement and sometimes also referred to as negotiation.
This involves a specialist company dealing on a direct basis with whoever you owe cash to and then negotiating to reduce that debt.
They make your creditors understand that the only way to get a proper return on their investment is to reduce the amount you owe.
There is much more leeway in these programs when it comes to repayment schedules and amount. Some have saved almost eighty per cent of what they owed and the fee is only ever a percentage of whats saved.
You must however be extremely careful whom you choose to work with. Only the best in the industry will have the knowledge, contacts and experience to successfully negotiate on your behalf. Some less reputable companies even try to pray on those in desperate situations for their own gain. - 20767
These consolidation loans have problems because initially you need to take out a loan for the full amount you owe and then on top of that you must pay fees to the consolidation company. That means that the total you owe increases.
The second problem is that the consolidation loan itself makes you look like you were bankrupt, because it comes from a third party, i.e the consolidation loan company. This affects your credit score in a big way.
This will severely affect you in the future and completely defeats one of the main reasons for taking out a consolidation loan in the first place - to avoid bankruptcy
There's a far far better route to follow to get yourself free of your debts and that is called settlement and sometimes also referred to as negotiation.
This involves a specialist company dealing on a direct basis with whoever you owe cash to and then negotiating to reduce that debt.
They make your creditors understand that the only way to get a proper return on their investment is to reduce the amount you owe.
There is much more leeway in these programs when it comes to repayment schedules and amount. Some have saved almost eighty per cent of what they owed and the fee is only ever a percentage of whats saved.
You must however be extremely careful whom you choose to work with. Only the best in the industry will have the knowledge, contacts and experience to successfully negotiate on your behalf. Some less reputable companies even try to pray on those in desperate situations for their own gain. - 20767
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You can read an independent report of the whole top debt consolidation loans industry (including consolidation and settlement) by Clicking Here You should go there because it will allow you to find out more information about the process and decide which are the best companies to help your situation.
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