Consumer Debt Counselling

Remember: Running away from your creditors is not the answer. It is not a solution, and may in fact lead you to bigger problems. If you are having trouble paying off your debts, address this immediately with your creditors.

By accelerating the payment structure on your loan, the life of the loan is reduced:

In a normal 30 year fixed rate loan situation, your monthly payment is applied towards principle and interest. It is amortized over the course of 30 years.

Having trouble paying your bills? Getting dunning notices from creditors? Are your accounts being turned over to debt collectors? Are you worried about losing your home or your car?

You¡¯re not alone. Many people face a financial crisis some time in their lives. Whether the crisis is caused by personal or family illness, the loss of a job, or overspending, it can seem overwhelming. Debt consolidation allows a consumer to present their financial case to a lender who may be willing to take on the burden of paying off debts in exchange for one monthly payment made to the lender.

Know the real from the fake in consumer debt counseling

Reduce debts today for a better life! Believe it or not, there are many consumer debt counseling business who want to take part in your hard earned money. These companies know that you have big debts to pay and so they take advantage of your desperate anxiousness and promise you that they have the solution to throw all your debts to the wind.

How do these debt counseling companies work? What could you possibly do to avoid being scammed by their promises?

The real ones

Legitimate and valid consumer debt counseling services are able to do the following: make late credit accounts current with no back payments necessary. Also, late fees and those that are already over the limit could be stopped. Real debt counseling services are able to consolidate high loan interests as well as balance accounts. They also find a method for its clients to still be able to keep their credit cards for essential expenses such as travel, business or any type of emergencies.

The fake ones

Beware and be wary of debt counseling services who claim themselves to be a non-profit group when in actually, they are far from being one.

For many who buy wisely, the equity could be substantial. A home equity loan can be used to pay off high dollar items, pay for college tuition, and be used to pay off those high-end credit card accounts. If you have some cash handy, you might as well pay off some debt, especially the one that is on higher APR credit cards.

The main reason for this risk is that in order to secure a lower interest rate (and thus a cheaper overall payment rate), you’ll need to present some sort of collatoral to back the loan.

All of the debt that an individuals owes appears on a credit report. Credit repots are used by financial institutions when a loan has been requested.

You can stop a debt collector from contacting you by writing a letter to the collector telling them to stop. Once the collector receives your letter, they may not contact you again except to say there will be no further contact or to notify you that the debt collector or the creditor intends to take some specific action. Please note, however, that sending such a letter to a collector does not make the debt go away if you actually owe it. You could still be sued by the debt collector or your original creditor.

One example is AmeriDebt. The Federal Trade Commission has fortunately shut this company down due to numerous and various complaints from its customers. The way AmeriDebt scammed debtors was by telling them they could easily get out of their debts. This could be done, according to them, even with no upfront payment fees. However, they were able to deceive their customers into forking up contributions, voluntarily.

These payments, made every month by their clients, were transferred to companies-for-profit, instead of sending the money out to the creditors. As a result, the clients suffered by worse credit ratings and annoying bill collectors. Currently, all accounts at AmeriDebt have now been transferred to a reputable agency via a bankruptcy third party trustee.

Payments will be lowered

Any claim made by debt counseling services that payments will be lowered are illegitimate. The fact of the matter is, payments can’t be lowered. The only aspect in debts that could be lowered are interest rates.

You¡¯ll call them, not the other way around

Any offer of services that involve the settlement of debts are bogus. You need not be offered something you can very well do so yourself. All you have to do is pick the phone up and call any of your creditors. They are more than willing to negotiate with your demands.

All in all, don’t be easily swayed. It pays to know more than be duped for money that rightfully should be yours.

Debt Consolidation- Debt Consolidation is an easy and timely alternative. A Debt Consolidation Counselor will evaluate your current situation and past debt and develop a budget for you. In a credit card debt consolidation, your average interest rate may be reduced. All your loans can also be transferred to one single card that has a lower interest rate than the ones you are currently paying.

The prospects of managing financial obligations have just gotten worse, as Congress has passed legislation that will make bankruptcy filings more difficult than ever.

Whatever your motivations, a decision to consolidate debt online may be the solution but before you make your decision or offer detailed personal information to debt consolidation companies check to see what they have to offer.

Learn ways to reduce your debts today at