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Card Consolidation Credit Debt Online

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Allan Said:

online debt consolidation?

We Answered:

I was in your shoes last year. I avoided the credit counselors, using them will lower your credit score. I contacted the creditors myself and made arrangements to pay off the debts. All but one were willing to let me get caught up, without hitting me with additional late payments on my credit report. I would suggest you make arrangements with the creditors yourself before you spend any money. After I got the credit cards paid off, I contacted a credit restoration company that negotiated the deletion of the late payments for me. I also had a judgement that they got deleted. They weren't cheap, but they were worth it.

Billy Said:

I have about $14,000 credit card debt in 4 cards and those debt already bought by collection agencies. I have?

We Answered:

I believe the companies will work with you, they want their money. They bought your debt for less than it was, so they have some room to work I don't know if different companies will work to combine into one payment though, as those companies compete. One company would have to buy your debt again at the seller's loss, but they'll definitely work out a payment plan with you individually. If that doesn't work for you, then go to the consolidation people. They can even reduce what you owe, since they work in volume and can pay debts faster.

Billy Said:

credit card debt consolidation?

We Answered:

Home equity line or loan. If not go to a bank.

Louis Said:

Debt Consolidation Company Referral?

We Answered:

The Better Business Bureau is a great place to go for referrals. They can show you local agencies that you can visit in person as well as to identify those which have the best record of satisfaction.

Alicia Said:

How does debt consolidation work?

We Answered:

You basically have one main choice (a loan or a debt consolidation service) and then options for each. Here's some detail on each choice.

Debt Consolidation Loan
Many people think first of a debt consolidation loan when seeking online debt consolidation. This option typically means a second home loan (or home equity line of credit) or refinancing your primary mortgage (or, in rare cases, a new unsecured personal loan). In a debt consolidation loan, you exchange one loan for another. The most frequent form is taking out a mortgage loan, which carries a lower interest rate and is tax deductible, to pay off high interest rate credit card debt. It is important to be aware that shifting unsecured debt to secured debt can create a volatile situation, if there is ever a chance that you cannot afford the new mortgage payment you are now putting yourself at risk of foreclosure! In the case of a debt consolidation loan, most mortgages are 30 year loan, which means that the total cost and the time to debt freedom could be very high… but the monthly payment will be lower than other options and there is no credit rating impact. If you do not qualify for a home equity loan, then the only other option would be to apply for an unsecured personal loan to consolidate your debt.

Credit Counseling
Credit counseling, or signing up for a debt management plan, is a very common form of online debt consolidation. There are many companies offering online credit counseling, which is essentially a way to make one payment directly to the credit counseling agency, which then distributes that payment to your creditors. Most times, a credit counseling agency will be able to lower your monthly payments by getting interest rate concessions from your lenders or creditors. It is important to understand that in a credit counseling program, you are still repaying 100% of your debts – but with lower monthly payments. On average, most online credit counseling programs take around five years. While most credit counseling programs do not impact your FICO score, being enrolled in a credit counseling debt management plan DOES show up on your credit report… and, unfortunately, many lenders look at enrollment in credit counseling akin to filing for Chapter 13 Bankruptcy – or using a third party to re-organize your debts.

Debt Settlement
Debt settlement, also called debt negotiation, is a form of online debt consolidation that cuts your total debt, sometimes over 50%, with lower monthly payments. Debt settlement programs typically run around three years. It is important to keep in mind, however, that during the life of your debt settlement program, you are NOT paying your creditors. This means that a debt settlement solution of online debt consolidation will negatively impact your credit rating. Your credit rating will not be good, at a minimum, for the term of your debt settlement program. However, debt settlement is usually the fastest and cheapest way to debt freedom, with a low monthly payment, while avoiding Chapter 7 Bankruptcy. The trade-off here is a negative credit rating versus saving money. A company like Freedom Debt Relief does this.

Net-net: while there are many forms of online debt consolidation, many people with good to perfect credit who own homes should look into debt consolidation loans, while consumers with high credit card debt and poor credit may want to explore debt settlement or debt negotiation. However, each consumer is different, so find the online debt consolidation option that fits for you.

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I really hope this helps you... but do your homework on your options and the company that you pick first!
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