5 Benefits of Debt Consolidation

Debt Consolidation Benefits

1. Rate Reduction You can reduce your interest rate on your credit card bills through negotiating with creditors. It can be tough to negotiate on your own, and the creditors have designed the system to take advantage of this. Debt settlement companies specialize in negotiating with creditors and know how to negotiate on your behalf. You will fight to get your payments restructured so that you can better manage your debts.

2. Debt Repayment Plan You'll receive a debt repayment plan that will be setup to enable to pay your bills based on your current income and financial obligations. The repayment plan will be designed to help you make your payments, not deter you from making payments by piling on late fees and overage charges. You won't have to deal with multiple payments to multiple lenders, making it easier to pay bills on time, every time.

3. Reduce or Eliminate Late Fees When you default on an account, the late charges/penalty fees get piled up over time and can amount to thousands of dollars. With a debt consolidation or settlement, you can help yourself to completely eliminate these late fees.

4. Get Debt Free Faster If you are only paying the minimums on all your credit cards, it will take you years to ever pay off the principle on the debt. With a debt consolidation program, you help yourself to make payments such that you don't have to carry on with an account too long. Thus it accelerates the time period the time it takes you to get debt free. You can help you to eliminate debt in as little as 4-6 years as opposed to 20 years or more.

5. Get Rid of Collections Calls No longer will your phone ring while you're having dinner with your family. You can stop the creditors from calling you by eliminating or settling your debt with them. Through debt consolidation, your debts will be put into a payment plan, thus eliminating the harassing calls from debt collectors.

Andrew Wise is the founder of Debt Relief Aid. His firm helps serve clients reduce or eliminate unsecured debt by providing clients unparalleled, and honest service of debt consolidations and debt settlements.

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Consolidate Credit Card Debts

Consolidating credit card debt would be very helpful when it comes to paying off your interest for many credit cards that you hold. It would be a terrible job to pay off interest every time for the list of cards that one holds. Therefore this consolidation is a boon to all those who will variable have many credit cards with different features in it. This has many other benefits to lower your interest or some other features too.

Consolidate Credit Card

It simply means consolidation of debts on different cards into minimum so that you are benefited. This consolidation is generally done though low interest bank loans. This can also be done by transferring the balance in it to a new one. This is another technique to lower your debts. You can easily turn all the debts that you have in multiple credit cards into the new with minimal interest.

Annual Percentage Rate (APR)

The first and foremost thing for one to look in a consolidate credit card would be the APR. This is the key to your consolidation. It is with this annual percentage rate one has to move further in their steps to consolidate the cards. As mentioned previously one can consolidate it either through bank loans or through balance transfer. Whatever method one follows, the APR would be the base, which determines the consolidation.

Suppose if one uses the bank loans to consolidate their credit card, then it should be in such a way that the interest of the bank loan been applied should be lesser than the annual percentage rate. Suppose if you are going to use the transfer mechanism to move to a new one then one has to make sure that the rate of the new that you are about to get must be much lower than the credit card that you are about to consolidate into one.

Issues with Annual Percentage Rate

There are other issues, which one must take care with this. Sometimes or most of the times, companies used his APR only for a short period of time and this induces people to consolidate their credit cards with this particular agency. However, this is a false alarm to people. This exist only for a particular period say 12 months or even less, but after this particular period the annual percentage rate increases steadily and this would totally drop your economy down.

Initially you may be offered even a 0% annual percentage rate for a period of 3-6 months. However, later this may have a good rise and lead to danger. If the change in the APR even after the specific period were either lower or the same to the current one, then it would be favorable. So one has to take into all these issues and then consolidate your credit cards.

Most Americans own at least one credit card. And of the seven in ten who do, an amazing 34 percent do not know the interest rate of the credit card they use most often. It is very easy to get a credit card. But it's very difficult to pay back your bills in full. Our expenses are increasing month after month. Whereas our income increases only year after year. So, it's very important for us to understand what credit card means to us today.
Visit our Website to get all facts and Information about Credit and Credit Card

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High Interest Rates Pave the Way to Credit Card Debt Consolidation

Very few individuals appropriately calculate and prepare for interest rates and fees that accompany their traditional spending. As a result, high interest rates can help force an individual into unplanned debt faster than they would think possible, leaving the individual feeling lost, alone and helpless. Fortunately, there are credit card debt consolidation programs and service providers which can provide some much needed aid.

Credit cards debt can be consolidated in a number of different ways. One popular method is to transfer all of an individual's credit card debt onto a single one that has either a low or zero percent interest rate. Since less money is going toward the interest on this low or no interest card, the principle amount can be paid off faster. As this is done, it is important to get rid of the old, high interest ones. Failure to do so often results in continued use and the prolonging of spending habits similar to those which got the individual in financial trouble in the first place.

Debt consolidation service providers can also help eliminate high interest rates and multiple credit card payments through their consolidation programs. Such agencies charge for their services, but for those who are unable to get a low interest credit card for a balance transfer this is a beneficial option available.

It is by doing your due diligence that you will find the service offering the lowest interest rate, this is a easy task if you use internet as researching and comparison tool, just make sure you will be dealing with a certificated firm.

By the way, by researching and comparing the best debt consolidation companies in the market, you will be able to determine the one that meet your specific financial situation, plus the cheaper interest rates offered. Nonetheless, it is advisable going with a trusted and reputable debt counselor before making any decision, this way you will save time through specialized advise coming from a seasoned debt advisor and money by getting better results in a shorter span of time.

Hector Milla runs the Best Debt Consolidation Company website - where you can see his best rated debt consolidation company recommendation.

Visit for further information and read our full review of the best debt consolidation service, plus articles and video training about how to get the most of your debt consolidation process.

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The Benefits of Debt Consolidation Over Bankruptcy

In today's financial economy, many consumers are having major financial problems. This is especially true as the unemployment rate climbs and many workers are being asked to accept salary concessions. While bankruptcy should be considered as a last resort, many consumers choose the bankruptcy option way too early, frequently without considering viable alternatives.

There are various alternatives available to you if you are deep in debt and do not want to declare bankruptcy. The option that should be considered by virtually anyone in this situation is debt consolidation. This option is often overlooked and provides the desired benefits of getting your financial situation back under control without having to endure the long-term negative affects of declaring bankruptcy.

But note that there are two different types of debt consolidation - a debt consolidation LOAN and debt consolidation SERVICE or PROGRAM, and these are two very different things.

A debt consolidation loan is where you take out a new unsecured loan and use the funds to pay off your outstanding debts. This is beneficial from the aspect that your outstanding and overdue accounts are taken care of, as well as allowing you to save a ton of money in late charges and interest because now you have just ONE loan to pay off.

The danger in this solution is that the lender rarely checks to make sure that you have actually used the funds for debt consolidation. Yes, that's what you told them when you applied for it, but that doesn't mean that that's what you're going to use it for. The temptation, when having that money in hand, is to get that big screen TV or take that Mexico vacation, and leave the bill paying for another day. Using the money that way is going to get you into even deeper trouble in the near future.

By comparison, a debt consolidation SERVICE or PROGRAM is clearly designed for the purpose for which the name implies it to be. You turn your debts over to the service or program and they negotiate with your creditors to lower your interest rates and lower your monthly payments. You make one payment each month to the debt consolidation service, and they in turn make payments to your creditors.

This is a huge difference. With the service, your debts are not all paid off, but they are indeed caught up and brought up to date. If you miss your payment to the service, then they do NOT make the payment to your creditors. But the huge advantage is that your monthly cash outlay to pay your bills is reduced drastically from what it was before, and this gives you the financial room you need to get your ducks lined up again financially.

No matter which of these two types of debt consolidation you choose, both are better than bankruptcy and can get you back on the right financial track quickly.

For more insights and additional information about Debt Consolidation loans or services, as well as getting a free online debt consolidation quote, please visit our web site at http://www.debtconsolidationstrategies.com

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