Do Debt Consolidation Services Hurt Your Credit Rating?

Many people believe the myths or gossip that is associated with debt consolidation. After all it is easier to believe a negative side to something that will get you out of debt, albeit a difficult process to undertake. It's almost like the old wive's tales that tell you that "losing weight when you are overweight is bad for your health." In this case the myth we are talking about is the one where people ask: Do debt consolidation services hurt your credit rating? Most people that don't want to deal with getting rid of their debt will say "yes."

But how is that possible? You are already in debt up to your ears, creditors are calling right and left - your credit scoring is already hurt. Debt consolidation services cannot hurt your credit rating any further. Quite to the contrary, they can only help your credit rating and make it better. Doing a debt consolidation is not - declaring bankruptcy - you are actually avoiding bankruptcy, owning up to your debt and paying it off in a debt consolidation agreement. This means once you have consolidated your debt, and you start making your monthly payments on time, your rating will begin to improve. You have 0 debt on your credit cards, so the moment you consolidate your credit rating will improve.

Now, there are both advantages and disadvantages to this credit scoring improvement. First You won't have creditors calling, so you can start relaxing, and that is an advantage. But the disadvantage lies in the fact that those credit cards will be tempting, and you may get even more credit card offers, but you need to stay away from them, because incurring more debt will negatively affect your credit rating.

Hopefully this will have answered your question as to: Do debt consolidation services hurt your credit rating, and make you take that final decision of finally clearing up your credit debt. Granted, it is a painful decision, as all things that are good for you are painful, but it is the best and fastest way of getting out of debt.

The Reality of Credit Card Debt Consolidation

Credit cards send a shiver down my spine and the aftermath of over using them, could present itself like something straight out of an Arnold Schwarzenegger movie. If you've sunk into the mire your options may become limited to bad credit debt consolidation I can just imagine Arnie on the end of the phone dishing out "structured words of advice." "You need da' debt consolidation, gets yourself da' debt consolidator ... or I'll be back!"

Unfortunately, and I am not trying to make excuses for credit card users, consumers tend to be manipulated by the banks. In good times credit seems to enter the lives of the masses largely uninvited and in many cases unwanted. The banks lend at an incredible pace to try and keep up with each other and justify their own over inflated bonuses. Naturally, at the time we don't complain as we are afforded the opportunity to join a high flying, albeit short lived, standard of living which really we should only aspire to. The buying power which is laid out on a plate for us "lends" a feel good factor to the masses who sign up to it. The problem is that banks never advertise the whole picture to those innocent people whose lives they will possibly go on to ruin at a later date.

What is credit card debt consolidation? That's fairly simple, credit card debt consolidation and the route to finding your solution to the set of problems associated with credit card debt consolidation would be best given by a debt consolidator, who contrary to initial expectations may actually achieve massively reducing your monthly outgoings. CODE - It's what they don't tell you to expect at the end of the credit boom, when everybody decides it's time to get their money back!

Most credit cards whilst convenient, charge very high interest rates if the balance is not promptly cleared at the end of each month. Your debt consolidator will simply take all of your outstanding commitments and attempt to lump them together into a longer term loan which can attract a much lower rate of interest and as a consequence, reduce your outgoings. Sounds simple really doesn't it?

Bad debt consolidation is an entirely different beast with separate yet associated problems to bad credit debt consolidation and the two shouldn't be mixed up.

Bad credit debt consolidation occurs to people who far from just being overstretched, have actively ignored their commitments, payments and quite legitimate pleas from creditors to contact them. Such individuals enter a risk category which even a debt consolidator may find difficult to help them escape from. Generally, the solutions to such cases often attract much higher interest rates and therefore any savings will be lower. Such cases may be extreme and other options such as IVA's and bankruptcy may be the only way forward for people in this situation.

The credit problem is helped along by a natural trait of the human race, which in the UK has been labeled "keeping up with the Jones'!" Effectively it is keeping one step of your natural competitor, be it a neighbor, friend, sibling, business competitor or otherwise, and I think it is in built in our gene pool. I am equally guilty of wishing to be able to keep up with those Jones'; in fact recently I was involved in the procurement of a 44 inch television set for my office. As seen in the background of my profile picture, said television is approximately 2 inches bigger than its equivalent in our other office, and that's not a coincidence!

Whilst that example is not going to get me or our business into any trouble, the principle rolls out through all walks of life and does put temptation in the way of those who, if it wasn't for the Jones' would probably lead a fairly ordinary life. Oh how boring that would make us all!

These days we are all waking up to the err of our ways and unfortunately the new business boom is occurring within the credit card debt consolidation industry where the very people who are involved in solving bad credit debt consolidation issues are the new generation of Ferrari or Cadillac owners. There is good news, and whilst blood can't be squeezed from a stone, it is not in the interest of these businesses to completely ruin your life as they will never see their money back. If you contact a bad debt consolidation business they will do their utmost to keep you afloat so that over time their debt consolidator advice will lead their clients to be reimbursed for the best part at least of what you owe them.

Loans For People With Personal Debt

There are times when financial needs are greater than the money an individual has saved. This calls for such a person to look for other ways to make ends meet. Among the ways one can use to come out of financial problems include, taking out loans to cover needs that would otherwise prove difficult to face. Many people borrow money to finance their needs but end up not being able to pay up. Such people can get loans for personal debt. This makes it possible to come out of debt.

Debt consolidation, also referred to as loans for personal bills, helps people who have so many unpaid bills and are not in a position to pay them off. The advantages with these kind of financial help is that the individual will only make one payment at the end of the month, making it easier for him to face other bills. These repayments are normally at a reduced interest rate.

Cash advances for personal liabilities come with cheaper interest rates as compared to credit cards which normally carry high interest rates. A person who has huge bills and is not sure how to go about it should consider the credit facilities instead of the credit cards, which make their financial situation even worse.

For Christians in bills, they should consider asking for Gods help before they can choose this form of repaying bills. This is in accordance with the Bible that teaches a Christian to cast all their burdens to the Lord. However when one decides to go this way, they should carefully take into account the consequences of their decisions and the impact that the move has on their financial future.

A Better Alternative to Credit Card Consolidation

Many consider credit card consolidation an option for settling multiple credit card debts. People who resort to consolidating credit balances are often after the lower interest rates that one card company or loan provider offers. By moving the other debts into a single account, the debtor also gains the convenience of paying monthly dues only to a single creditor.

Consolidation of card debts usually involves a secured loan against an asset, often a home, which serves as collateral. Aside from a good credit rating, people who are considering this option must also have a significant equity in their home. In essence, credit card consolidation is merely shifting a number of unsecured loans to a secured loan, but the total amount of debt is not really reduced.

In contrast, debtors may find a card debt settlement scheme that allows them to pay for multiple debts at significantly lower monthly payments. Credit negotiation is key to cutting the cost of debt to each creditor. Upon successful negotiation, the debtor may then settle the remaining balance, which could be as low as half the original amount.

Debt settlement, as the name implies, is aimed at eliminating debt at significantly lower cost, as opposed to debt consolidation, which merely takes out one loan to settle others. In this light, debt settlement is a better alternative than credit card consolidation alone. Some debt settlement firms also allow the combination of these two payment schemes, which could be really advantageous for people looking for a fast and efficient way of settling multiple card balances.

Debt Consolidation - Bankruptcy Should Not Be an Option

Bankruptcy, the thought of it leaves a bad smell in the air, or at least the is the way creditors will act after filing. Bankruptcy has a negative effect on credit reports, too. One that will last for ten years. Making it very hard to buy a car, rent or buy a home or many of the others activities that require a card rating.

Bankruptcy should be the final option, only used when all else has failed. Bankruptcy has such a negative aura that people have jumped out of windows rather then face it. It is not the only option though. When it seems that the bills keep piling up higher and higher and borrowing money to make the bills becomes a way of life, think about debt consolidation.

Debt consolidation is where all the bills are gathered up and a loan taken out to pay them off, a loan with a lower rate of interest. That is where the money is saved. Instead trying to juggle numerous bills , there will be only the one monthly payment.

Before any decisions are made, there must be some research. A call to the Better Business Bureau to see if the company in question has a good reputation, or if there has been any complaints against them,should be first. Next, a call to the District Attorney's Office should be done to see if there are any charges being filed against them. These steps and warnings can not be repeated enough. There are countless con artists. Next try to find out how long the people have been in the community. People with ties to the community are less likely to pack up a leave with your money.

After going through all that trouble to find a company that can be trusted, be sure that full advantage is taken of all their services. Most companies will offer credit counseling, too. Once the plan has been made stick with it. That is the way to a better credit rating.

Are These Debt Consolidation Lenders a Good Alternative?

For most people in debt, the only alternative to a debt consolidation loan is bankruptcy. For this reason, debt consolidation lenders act as saviors for people who face the prospect of a fall into the bottomless pit of debt from which escape would be impossible.

The real advantage of a debt consolidation loan is that it makes the loans owed by an individual manageable. This is possible because all of the owing debt is accumulated into a lump sum and in this way the debtor is able to take charge of finances which previously were handled in a haphazard way.

Another advantage of debt consolidation loans is that financial institutions today approve of them. While in the past lending institutions used to distance themselves from people in debt, today they are more appreciative of the fact that a person who seeks a consolidation loan is genuinely trying to pay owing dues. The change in attitude by lending institutions has made them more accommodating people with bad credit history as these institutions realize that the real harm would be to lose such customers.

One of the greatest advantages of using debt consolidation lenders is that such lenders will try their best to have the debts either written off or, reduced to the lowest possible amount. In this way, some money will be released and will enable the person in debt to breathe more freely. Such lenders also possess the negotiation skills that the debtor will not have and are therefore ideally placed to save the customer money.

Apart from their advanced negotiation skills, consolidation lenders have more information on the servicing of debts and this information can be made to work for the person in debt. This is critical when it is appreciated that there are certain debt removal methods, which are also legal, which are out of the domain of public knowledge, but which debt consolidation lenders will be aware of. The only disadvantage with using this kind of lenders is that the debtor has to repay the consolidation loan at a rate higher than normal loans.

Do Debt Consolidation Lenders Really Lend Without Collateral?

Collateral is what a borrowers pledges just in case he or she fails to refund the money loaned after the expiration of the repayment period; whereby, the collateral possibly will be an asset that has an approximate value similar to the loan. The lender seizes the assets in case of failure to the repayment of the loan. Loans that do not require collateral referred to as unsecured loans while the others referred to as secured loans. Secured loans to put the borrower in so much pressure therefore have discouraged people or organizations from getting loans for the reason that of the risk involved. Firms that lend money commenced offering unsecured loans to increase the number of borrowers they get.

Greater part of the people or organization who are in exceptionally huge amount outstanding that they owe other people or companies do not have assets that can act as collateral. The fear of these individuals is they cannot receive any other loans to reduce the pressure on their debts. Fortunately, most of the debt consolidating firms does not require collateral for to be approving a loan meaning they offer unsecured loans. The lenders who offer the loan rely on your word that you shall repay the amount. Since, the risks for the lenders organization are high for the reason that individuals could sometimes escape payment. Therefore, the lenders cushion themselves by charging higher interest rates than those that have collateral.

Unsecured debt consolidation is suitable to debtors in view of the fact that greater part of them are usually in large debts. Given that, there is no collateral therefore, amount lent can be as much as what the debt is amounting to with no limit. They also lend a hand to individuals or companies whom almost filing into bankruptcy as well as have no collateral. The only way the unsecured loans can proof your probability to repay back the loan amount is by checking on the following requirements. These are the availability of continuous stable income for example employment; the borrower should also have a credit history, as well as a low debt to income ration.

Using Introductory Credit Card Offers to Either Reduce Or Eliminate Credit Card Debt

Using Credit card offers to Consolidate credit card debt is a good idea or rather we are led to believe it is if we choose to listen to everything we hear. On this occasion however it is very difficult to argue with those people voicing that opinion.

In fact it is one of the first steps that should be taking to address the problem of excessive credit card debt, but many people wonder what they need to do and how to go about credit card consolidation.

It is easy to understand why so many people are confused when they are faced with the sheer volume of choice available to them and many of them wonder whether they should just opt for the lender that advertises the lowest APR.

The answer is never quite that simple as the number of lenders offering promotions is large and it is well worth taking your time to check out as many offers as possible comparing everything the offer entails and not just a low Apr.

As mentioned, there is an ever increasing number of credit card balance transfer offers available for you to choose from and new and more attractive offers appear every week asking you to consolidate your credit card debt with them.

There are three primary things you must always look at when considering a balance transfer offer;

1. The special introductory APR; the lower the better.
2. The length of time that the introductory APR lasts for; normally between 3 to 12 months but the longer the better for you.
3. The standard APR that the card reverts to once the introductory period ends; again, the lower the better.

Each of these is important but let's take a closer look at just how important they all are:

The Introductory APR is without doubt the lure that tempts people into signing up with a service provider and is what most people will look at when considering using a card for consolidation purposes.

It is still possible to find cards that offer a 0% introductory APR and these should be checked out first of all. An introductory offer, irrespective of whether it is 0% or a low Apr, will provide some much needed breathing space with which the user can reduce and hopefully eliminate their credit card debt.

Needless to say the longer the offer period the longer the period of time you have without paying interest and the further you will be able to eat into your debt. If the offer period is long enough that you are able to clear your debt, fantastic; if not, then you will still have succeeded in reducing your debt load as well as saving yourself a huge chunk in future interest payments that you would have otherwise had to pay.

That brings me nicely onto the standard APR. If you were unable to clear your debt using the introductory offer and are still left with a debt balance then knowing the standard APR is vital.

There is absolutely no benefit in taking advantage of introductory offers, no matter how good they are if you are left with an outstanding balance at a high interest rate. If you were to end up in this situation it would take a very short time to reach the same level of debt as you experienced before and you could even end up in a far worse situation.

However, if you are confident that you will be able to completely clear your credit card debt, in its entirety, during the introductory period, you can certainly be more flexible when making your offer choice.

It's quite simple really, the card that matches your requirements, both current and future, is the card best suited for your needs.

Why Use Care One Credit For Debt Consolidation

If you are struggling with debts then debt consolidation is a legitimate way to allow you to get out of your debts and back to normal life whilst avoiding bankruptcy and all the difficult consequences that it brings. There are many debt consolidation companies around but it is important to know that they are not all the same. The debt relief industry often gets a bad reputation and this is the fault of some unscrupulous companies in the industry.

A good debt consolidation company will allow you to consolidate all those debts into one single payment. This removes a massive amount of stress from the situation. Consolidating into one payments also means that the interest that you a re-paying will be able to be reduced. One disadvantage of many consolidation schemes was the fact that to qualify for these loans you had to have equity in an asset such as your home to put as collateral for the loan.

However, most people who found themselves in the situation of needing a loan like this don't have that level of equity. It can be a real catch 22 situation. That is why Care One credit is an excellent option for those people who find themselves in this situation. Care One credit are in a unique position to offer people consolidation loans that do not require security to be accepted for.

It should be pointed out though that this is not an 'easy option', anyone entering into a loan agreement needs to be motivated to complete the program.

Break Free From Debt Using Debt Consolidation

Credit card debt consolidation offers people a way to get out of debt and regain control over their runaway finances. Millions of people have increasing debt problems and credit cards are often to blame for a large part of this. Finding the means to pay off this debt is almost impossible for many and credit card debt consolidation is often the best way to correct this, helping debtors pay off secure and unsecured debt as well as credit card debt.

Debt consolidation offers debtors the opportunity to reorganize their finances and get some control back over their debt. There are a few options available for consolidating debt one of which is the use of debt management companies.

Debt management companies will work on a debtor's behalf, dealing with and negotiating with their creditors. They will work towards reducing or eliminating the interest on the debt and will then request a monthly payment from the debtor that they then distribute to the creditors.

There is usually a cost incurred by using these services and caution should be taken as there are many companies out there that are just out to scam you, but all in, the majority provide a good service that do achieve, at times, excellent results.

If you own a home you could look into a home equity loan as another option, this works especially well if you have bad credit. By taking out a home loan you will drastically reduce your monthly installments and interest rates, but the term of the loan may be a lot longer than your existing debt so do the math to make sure you will be better off in the long term as short term you will definitely benefit.

There are also loans available that offer such benefits as early pay-offs, cash back loans, lower interest rate loans, lower monthly mortgage payments, and so on. Most lenders are all too aware that people will run into financial problems at one time or another and the good lenders out there, instead of taking advantage of this, will work much harder towards helping these people to get out of debt and improve and rebuild their credit.

Finally, don't despair, it is all too easy to let debt beat you and to give up those things that you have worked so hard for. There are a lot of free resources out there, use them and seek out a debt counselor who will help you to analyze your debt and help you deal with it in the right way.

This is the Recommended Top-Rated Debt Relief Method

The time you spend in debt feels like an eternity. Some people say it makes one feel like a failure. You need to get out of your hole before you drown! Let me show you how you can get quality help and a plan to get out of debt safely.

A debt community is just the place to get a team of experts that will pick a fight with your creditors. Interest rates are horrendous, at an average of almost 19% in 2007. Millions of people in the U.S. owe their creditors and paid them a total of $18.1 billion in 2007 for late penalty and interest payments.

Here's a quick list of some of the benefits you can enjoy:

-lowered monthly payments
-lowered interest rates
-no late fees
-no more collection phone calls
-no bankruptcy
...and a bunch more

The first get-out-of-debt community on the internet was Debt Consolidation Care, and to this date they have helped over 150,000 to successfully get out of their financial hole. After they consult with you over the phone, their team of experts will give you a solid plan that you can follow. Not only will you get out of debt, but you will know how you can stay out of it for good. Your chances of success are great! Just dedicate yourself to more disciplined spending. There is much a need for you and the other millions of people that are in debt to make a recovery. Believe now that your debt is a not a natural occurrence in life, and that you get off the radar of your creditors.

Your Medical Debt Settlement Could Be Closer Than You Think

When you have accumulated thousands of dollars of medical bills (which is not an altogether difficult task) it can seem as if your medical debt settlement finish line is a hundred years away. After all, it's not as if your house payment, car payment(s), insurance premiums, and other regular bills simply disappear when you have a medical emergency that results in a high medical debt. Still, your medical service providers will expect to be paid, and their understanding for your financial situation only seems to go so far.

However, there are some options that any person can take advantage when medical debts get out of hand and threaten to ruin your financial future. For instance, a lot of people are not aware that the medical debts that you have accumulated are not set in stone. They can be negotiated, and medical debt negotiation is now a business in and of itself, where professional negotiators are able to drastically reduce the amounts that people owe to hospitals and doctors every day.

If you want, you can even give it a go yourself and see if you can get your medical service providers to reduce your debts. They want a medical debt settlement as much as you do, after all, and charging you an amount that you prove you are unable to realistically pay isn't going to help anybody.

Then again, if you have a number of medical bills, you may find that the best route to medical debt settlement is by consolidating your medical bills to one debt. The advantages to this are that you will almost always pay a lesser total amount, get payments that work within your budget, and avoid the fees and penalties that can usually keep you from ever catching up.

These are just a couple of the solutions that are available for those that truly want to settle up on their medical debts for once and for all. If you count yourself among those people, you will want to look into any and all options to help you pay off your debts for good.