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Bad Credit Debt Consolidation by www.alifeoutofdebt.com
Are you afraid of bad credit? Then this article is perhaps for all of you who feel bad credit is an issue. Let this be your first step towards Consumer Credit counseling. No doubt there are numerous bad credit personal loans but hunting for...

Consolidation Loans For Tenants- Empowering Tenants With A Method To Counter Debts
Tenants are persons who are residing in a rented apartment. They do not have a home of their own. Cities have a larger population of people who have been living as tenants. Debts are as much a menace for the tenants as it is for the homeowners....

Debt Consolidation Secured Loans: A race to your debt free future
A debt consolidation secured loan is particularly used for debt settlement. A debt consolidation process brings together or consolidates various debts and multiple payments like store, gas and phone bills, home improvements, medical bills,...

How to Find the Best Debt Consolidation Secured Loan
If debt is a way of life for you, it's time for you to consider finding a debt consolidation secured loan. This loan is designed so that you can pay off some or all of your debt, leaving you with a single low monthly payment instead of multiple...

Unsecured Debt Consolidation Loan Helps In Managing Your Debts
Do you need freedom from all the hassles involved in dealing with your lenders and want to become debt free? If yes, then unsecured debt consolidation loan is the solution to all your troubles. I am sure by this time a question must have aroused in...

 
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What is Debt Consolidation?

Debt consolidation may be the answer for anyone drowning in a sea of unpaid bills. Debt consolidation lumps all of your unsecured debts including credit card bills, doctor, dentist, veterinary, and other service provider bills any bills that are not secured by collateral or property such as an automobile or a house into one monthly payment.

Types of Debt Consolidation

There are several ways to achieve debt consolidation, including one that does not require borrowing more money. Debt consolidation options include:

1. Home Equity Loans A popular method of debt consolidation, the home equity loan is a mortgage based on the amount of equity you have invested in your home. It should be noted that home equity loans are secured by your house, which means if you fail to make payments on schedule, and according to the terms of the loan, you risk losing your house.

2. Personal Loans Many banks and other lenders offer unsecured personal loans based on your annual income. The amount that can be borrowed will vary from person to person, and not everyone will qualify for this type of loan. To use personal loan proceeds for debt consolidation simply deposit the loan money into your bank account and write checks to your creditors, or ask the lender to disburse the money to your creditors for you.

3. Private Loans Some people may be able to borrow from family or friends and arrange very individual terms. Borrowing from others in your personal life can be tricky business and


it is advisable to make sure any arrangements are made in writing.

4. Debt Management Plans Not everyone will qualify for a personal loan, and not everyone owns a house, or has someone in their personal life from whom they can borrow money for debt consolidation. For people in this situation there is another option available - a debt management plan through a credit counseling agency. Even if you have all of the previously mentioned options available to you it may be more advisable to seek out a debt management plan. Debt consolidation through a debt management plan involves having a credit counselor negotiate with your creditors for payments you can afford. You end up making one monthly payment to the credit counseling agency which then sends money to your various creditors.

Regardless of which type of debt consolidation plan you choose, be sure to check out potential lenders or your credit counseling agencies thoroughly. It is also strongly advised that you destroy paid off credit cards and formally close those accounts to avoid the temptation to charge them up again. When done carefully and with consideration, debt consolidation will ease your financial worries.

About the Author

Timothy Gorman is a successful webmaster and publisher of Debt-Relief-Solutions.com. He provides more debt relief, consolidation and free debt consolidation information that you can research in your pajamas on his website.