Are you buried under a mountain of credit card debt? It's a terrible feeling. You may wonder how you will ever work your way into the clear again. A debt consolidation program may be the answer you are looking for. If you are falling behind and creditors are hounding you, you have three choices. You can file for bankruptcy and clear out most of your debt but your credit will be ruined for 10 years. You can take out a consolidation loan which combines all your little bills into one huge bill you still have to pay each month. If your credit is bad you might not qualify for a loan or you might have to do something drastic like mortgage your home just to pay your credit card debt. Consolidation loans are rarely a wise choice because it amounts to trying to borrow your way out of debt.
There is a better answer than either of those two choices and that is working with a qualified debt consolidation program. When you sign on with a debt consolidation company, they immediately take the worry from your shoulders. From that point on they deal directly with your creditors so you can breathe easy when the phone rings. The company will negotiate with your creditors and get them to lower the amount you have to pay back. This is usually done by eliminating fees and slashing interest payments. You will still have to pay off your bills but it will be much easier for you to do so.
When you sign on with a debt consolidation program, your counselor will work up a repayment plan based upon how much you can afford to pay each month, the total amount you owe and approval from your creditors. You will make one single payment each month to the company and they will distribute it to your creditors in a way that will get you out of debt the quickest. You could be debt free in just a few years.
When you are in a debt consolidation program, you cannot get new credit as it shows up on your credit report. If you are having financial difficulties you should not be seeking new credit anyway so this is usually not a problem. When you have finished the program your paid off credit lines will be reflected on your credit report which will improve your credit score.
Credit cards and other unsecured lines of credit are the only types of debt eligible for a debt consolidation program. Home and car loans do not qualify since they are secured loans. Using one of these debt programs can do wonders for your peace of mind. Things happen in life and people wind up in debt. It is a very common problem in society today.
If this has happened to you, consider your choices wisely. There is no need to sink further into debt or file bankruptcy when a better choice is available. End harassment from creditors and simplify your life with one monthly payment. Watch your mountain of debt dwindle as a professional debt counselor helps you turn your finances back around.
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