The Truth About Debt Consolidation Companies
Debt consolidation is one solution to your debt relief needs. I have reviewed numerous companies regarding consolidation to help you with your debts.
Debt consolidation has been confused in the past. This is partly due to the information available to those who require a solution to their problems. If you have a financial situation then seeking debt help that is effective is paramount. The trouble is finding the right method such as consolidation. Before launching into an explanation about companies I have reviewed I would first like to explain about some of the solutions available. Debt consolidation is one option among many such as management, settlement, and negotiation, which is why an explanation is needed regarding all of the solutions.
Debt Consolidation - Reduce The Monthly Payments
This solution utilizes a loan to reduce the monthly payments you have. It does not mean your financial obligations will be reduced. For instance, if you owe $10,000 on three different credit cards it can be reduced to one loan. This does mean you reduce the amount of interest you pay on the amount owed. In this way you save money, but you may not find the entire amount reduced. Sometimes these loans are used in conjunction with negotiation for a lower amount owed. If the creditor feels they will not get any money from you they may allow for a reduction on the amount owed, which is then paid off by the debt consolidation loan.
If the creditor does allow for a lump sum payment you need to have it in order to get the reduction they negotiated with you for. You may find even with a lump sum payment the creditors are unwilling to reduce the amount. It is why this option through a company is necessary. A negotiator working on your behalf can work for the best deal. They have relationships with the creditors you have since they are in the consolidation and debt business. They also have knowledge of the laws and regulations enabling them to work better with the company.Negotiations With the Creditors
You see, the consolidation process allows negotiations with the creditors. They approve a loan for you and the money you receive from that loan is used to pay off the debt obligations. In this method you may find your overall amount owed has been reduced, but the closing fees on the consolidation loan may bring it closer to the original amount owed. You also have fees or commissions paid to the company offering you this solution. It is best to keep the reality of the situation in mind to avoid surprises at the end. You should definitely compare debt consolidation programs to ensure you have the lowest fees for the loan, closing costs, and their labor on your behalf.
Consolidation is not meant as a miracle answer. Rather, it is meant to help you pay off your financial burden faster. It is debt help, but in a method that does not always save you anything more than the interest. When you have three credit cards you have three interest rates. Those rates could be 11 percent, 15 percent, and 19 percent. If this is true then you pay a total of 45 percent per year on your credit cards. Consolidation takes this down to one interest rate. The interest rate on debt consolidation loans might be 20 percent, but that is certainly better than 45 percent total.You Are Making One Payment Instead of Several
Debt consolidation may not be for you. Settlement in which you use your savings to pay off the companies and be debt free is another option. This only works if you have savings of course. Management does not use consolidation. Rather, management is designed to help you reduce your monthly expenses so that you can pay off one credit card or loan at a time. Once one is paid down you move on to the next one. Consolidation can have a high monthly payment in terms of lumping it all together. The good news with this solution is that you are making one payment instead of several, which helps you pay it all off without feeling over burdened by interest payments.
Another benefit of consolidation is to hopefully lower the monthly payments you make in order to make the entire situation more affordable for you. You may have to pay the same monthly amount you paid before when they were all separate, but the difference is it is to a loan and going to one of the debt consolidation companies you choose rather than the credit card companies. Consolidation cannot promise lower payments, though reducing the amount you owe should also reduce your payments if that is an option. There are certain situations that make consolidation work best for some and not at all for others.
Compare the Different Debt Consolidation Companies
You have a choice in the companies you choose from. It is important for you to compare the different companies, but you may wonder what you are comparing when you look online. Even here you wonder about the information you read. It is natural to do so with the numerous scams out there on the Internet. To make you feel more comfortable about this solution and to trust the companies listed on this site you need a little background information about me.
I have chosen a career in assessing these companies. I am paid to assess companies and to write reviews. I do not review a company for pay unless I feel comfortable about that particular company. I speak with the staff to determine how well they work together and are willing to work for you on your debt issues. Until I have fully vetted a company according to my parameters I do not publish my findings. I hope my process offers the same attributes you would like to see from debt consolidation companies as I have chosen rigorous processes to test these various companies out.
Best Choice for Debt Consolidation
These are the three top choices for debt consolidation I have chosen. Each company has gone through my process and may work for USA and Canada residents. Often companies based in the USA have offices in Canada, helping you find debt relief wherever you are.
National Debt Relief is a BBB accredited debt consolidation company I recommend as a first choice. This company was founded in 2006. I have met the staff members of this company and offered them marketing help. During that time I worked with the debt help company I learned about the business and what they do, and this is how I can feel confident to recommend them. They meet my standards regarding help for financial obligations. They have a debt consolidation service that I can trust; therefore, you hopefully can too.
This site will give you debt relief as well as other solutions. You can examine the site directly just to make sure that you are satisfied with the site.
Credit experts giving debt consolidation advice was founded National Debt relief. National Debt Relief provides free videos, education, comparison service and consumer advocates to assist yours get the best solution. However, the best debt consolidation is always what is best for you and not others.
This company also helps Americans in understanding better their credit scores as most Americans are only aware of their credit score but they do not know what it actually means. With National Debt Relief you can be sure of the best service and any latest information in the form of blog posts related to debt consolidation loans and credit cards as well as better understanding of credit scores.
Freedom Debt Relief is another debt consolidation company. Their site is more about information and facts, but they still offer financial solution services like management, consolidation, and negotiation. At this company you can expect to find counselors offering their debt services. They have helped with thousands of other clients to provide Tax Debt Relief. Counselors are helpful in solving your original issue with money. They look at how you spend money to determine when you spend more or potentially why you increase your debt. It can be helpful to get to the root of the issue since you can solve your debt only to wind back up in debt.
Oak View Law Group is the third company I would suggest you examine. This company like the first two has a reputation for providing help to those in financial need. They work closely with numerous credit card companies, negotiating settlements. This company also offers consolidation loans to help you close your accounts faster. You still have the loan to pay off as was mentioned above, but at least you are actively seeking help.
Valuable Information about Debt Consolidation
This solution entails the lumping of all your unsecured loans such as veterinary, credit card bills, doctor, dentists’ bills and all other bills that do not have collateral or property like a house or you can use an automobile as the security into single monthly payment. Debt consolidation is a perfect solution to a person having many unpaid bills.
This solution usually is done to secure lower interest or to secure fixed interest rates or even to experience convenience of servicing one loan only rather than having to pay many loans to settle either monthly or after a certain period.
You can either consider debt consideration to consolidate your unsecured loans into an unsecured loan but it mostly involves consolidating unsecured loans to secured loan against your assets, which can be either your house or your car. Collateralization of a loan enables lower interest rates than a loan without collateral. This is because, by collateralization, the owner allows for a forced sale of the asset in any case the loan is not paid back on time. Therefore, the risk to a lender is highly reduced so the rates of interests are lowered.
This solution is advisable to someone paying out credit card debt. This is because credit cards are known to carry higher interest rates compared to unsecured loans from banks. Debt consolidation allows you to pay your loan easier and faster. By using your property as collateral, you can obtain a secured loan. This lowers your accumulated cash flow paid to clear your loan enabling you finish your loan earlier.
If you have many debts, then you should consider debt consolidation loan as it is a better way of making easier and lower payments. Debt consolidation is a perfect solution to people by enabling them to make easier and lower payments and foe quite a longer period by combining their different debts such as the credit cards and the other unsecured loans into a single monthly payment.
If you choose debt consideration, you can select between the different methods of obtaining the loans, which are either with your bank or with another bank or by working it out online.
Debt Consolidation Using Another Bank or Your Bank
Before you make a decision on whether to take up a new bank or use your bank in obtaining debt consolidation loan that you require, you should ensure that you carry out extensive research on all the available offers. Do not jump into the first offer without finding out whether there are better offers out there. Talk to people in your bank, mostly those who have earlier obtained the same loans from the bank. Since the people at you bank know you much better, they can easily offer you a better deal so as to maintain you as well as keep doing business with you.
If you consider obtaining the debt-consolidating loan from another bank, ensure that you do not settle for the first offer, Visit many different banks and listen keenly to the offers made to you. New banks have the tendency of giving a better offer as they are interested in acquiring new customers. At the end of the day, sit down and settle for the best deal. You can involve an expert to explain to you better the terms.
Debt Consolidation by Working it Online
If you choose to work it out online, you should take a lot of care, as most online dealers are not interested with you benefiting from the deal, as they only want to steal from you. Working it out online is almost similar to working with a bank, the only difference being that you are not able to talk to the people that you are dealing with directly. Therefore, you should do extensive research by contacting them and asking them many questions you can also go through the reviews about your chosen online dealers. Check for their online rating as this may give you a hint if anything is wrong with them.
The two types of debt consolidation loans; unsecured loans and secured loans where in secured loans, you need to provide property or collateral as security in case of breaching the contract. Usually people will give assets such as their houses and cars as collateral. However, not all this is necessary if the loan is unsecured. In any case, your character as well as your history determines your eligibility.
Now, the next step is to find out what you need to obtain debt consolidation loan. Here is how you can determine if you are indeed qualified for debt consolidation.
If you have many different loans from distinct lenders and you need to consolidate them.
If you are unable to pay some of your loans, therefore you want to spread them over a longer period.
If you want a single interest rate for your entire loan for your own convenience.
If you need to be able to pay lesser amounts in monthly bills.
If you are a homeowner and you need to be able to settle all your bills such as the credit card bills and store card bills by leveraging your home then definitely, debt consolidation loan is the best solution for you.Consider the Following Information
Have you heard how debt consolidation can save you interest and lower your monthly payment? Perhaps you have heard that this is all a myth? Maybe you do not believe in consolidating your debts because of the negativity of scams out there? Before you buy into one expert opinion or another consider the following information.
A loan for consolidation can be obtained through any lender. You could go to your bank, ask for a loan that covers your debt, and pay off all of them with the money you obtain. You could approach a company that offers you this wonderful choice, have them negotiate for a lower payoff amount, pay a fee, and minimize what you owe.
Debt consolidation is designed to place all of what you owe creditors into one loan. It may or may not reduce your monthly payment. It will certainly decrease the interest you pay out. Here is why: I will say you have five creditors that you have to pay towards each month. Three of those bills have an interest rate of 12%, one has 15%, and the last is 20%. You are essentially paying 59% APR per year with these rates. Simply add all five up and you will arrive at this conclusion. The APR is the annual percentage rate, so you do indeed pay 20% to one company in this example. Now, what happens if you decide to put all of these payments into one loan? It means you have only one interest rate or APR. If the APR is 20% on your single loan that means you have reduced your interest rate by 39%.
Obviously in one way some of your monthly bills have increased in interest, yet when you look at the complete picture regarding interest rates and debt consolidation you do see a reduction of interest rates.
The monthly payment can be less if you receive a better interest rate. The monthly payment is based on the amount owed and the interest you have to pay. In terms of the debt consolidation monthly payment you have to determine what your monthly interest rate is. We will use 12% as the APR because on a monthly basis it would mean you pay 1%. Say you owe $10,000 total for all loans at 12% interest, with a 5 year payoff time. With debt consolidation this might increase your monthly payment because you are going to pay it down in a shorter amount of time than most credit cards and other loans require.
Before you consider any solution to your money issues, you need to treat the cause. The cause of why you became in debt is the only way to ensure you make the payoff and do not get into debt again. If it is a matter of a job lost than obviously there is very little you can do if it happens again. Some seek debt relief because they overspend, so if this sounds like you then treat the cause of overspending first.
Treat the Cause before Debt Consolidation
Debt solutions are only going to help you when you actively start seeking help. You have taken the first step by reading a short introduction to reviews. Now is the time to finish this step by reading the full review and examining a few of the testimonials available. It is time to make a decision about your financial situation and end your debt troubles. Until you take action you will not be able to solve the money troubles you have. Furthermore, you may get into a worse situation. Do not wait until bankruptcy is your only choice. It is not too late to speak with a representative about your situation.
When you search for relief of your financial burdens it is imperative to trust the company you work with. I wish to make certain you can through providing you with a variety of different reviews about companies I trust to offer you debt consolidation. I hope the above has been helpful to you and that the reviews will be everything you need to make an educated choice about relief.