Bad Credit Debt Consolidation - What Are Your Options To Reduce Your Debt With Poor Credit?
To reduce your debt with a poor credit history, you have several
options. While none will solve your credit problems overnight,
they can help you get on better financial ground. A debt
consolidation loan can help you reduce your monthly...
Consolidate A Credit Card To Reduce Your Debt
Strange though it may sound a credit card can be a useful tool
in controlling debt. The properly chosen credit card can, in
fact, be used to consolidate debt. There are several features to
look for though if you plan to use a credit card in this...
Debt Consolidation – Can You Negotiate with Your Credit Card Company?
The average American household has nearly $10,000 in credit card debt, and many people are only able to make the minimum payment of 2% of the balance. Even 2% is $200, and by paying the minimum payment, you could be paying on the balance for decades...
Debt Settlement Vs. Debt Consolidation
Debt settlement and debt consolidation both offer ways of
reducing your debt. Debt settlement eliminates part of your
loans, while debt consolidation reduces interest rates. Even
though debt consolidation has the least impact on your...
The Pro's and Con's Of Debt Consolidation Loans
You are swimming in debt. You have 4 credit cards maxed out, a car loan, a consumer loan, and a house payment. Simply making the minimum payments is causing your distress and certainly not getting you out of debt. What should you do? Some people...
|Debt Consolidation - Types Of Help Available For Unsecured Debt Consolidation
There are several types of help available for unsecured debt
consolidation. You can choose to take out a debt consolidation
loan to lower your rates and payments. You may also choose to
use a debt consolidation programs, letting a third party deal
with your creditors. And finally, you can turn to a credit
counselor to help you find the best plan for your situation.
Debt Consolidation Loans
A debt consolidation loan is any type of loan you take out for
the purpose of paying off other creditors. Ideally you want to
find a loan with lower interest than what you are currently
paying on your bills. However, even if you don't lower your
rates, you can lower your monthly payments by choosing a long
term loan. The drawback of course is paying more in interest
You can choose from a secured loan, usually backed by your home,
or unsecured loan. Secured loans, including a home equity loan,
second mortgage, and line of credit, will have lower rates and
the tax advantage of writing off your interest payments.
However, if you don't have a home, you can still find relatively
low rates with a personal loan.
Debt Consolidation Programs
You can also work with a debt consolidation program to lower
your rates and
consolidate your bills. This third party agency
will negotiate lower rates with your creditors for a small fee.
You also only make one monthly payment, letting the agency pay
your bills from that sum. Some non-profit agencies also
specialize in helping those with six or more months of late
Before you sign up with these types of programs, be sure you
have researched several agencies. Compare pay back dates, fees,
and estimated monthly payments.
If you are confused about your options or just don't have a plan
for getting out of debt, consider visiting a credit counselor.
As a non-biased person, they can explain your financial options.
They can also discuss with you're the pros and cons of each
options, helping you find the best program for your unique
Besides helping you to consolidate your bills, they can also
help you develop a monthly budget and long term financial goals.
About the author:
See my recommended Debt
Consolidation companies online. Carrie Reeder is the owner
of ABC Loan Guide, which offers help with loans for people with low
credit scores. scores.