Wednesday, May 18, 2011


There are many ways of going about it. Many would advise going for credit counseling. The trouble with that approach is that this credit counseling usually works for a credit loan company and the credit counseling could easily lead one to do debt consolidation with the company giving the credit counseling. This is not necessarily advantageous as this company may not offer the best terms for debt consolidation.
Many people easily get into trouble by careless spending habits. Store cards, Credit Cards, Term purchases and other unsecured short term loans all of which bear high interest rates can lead to the situation where and individual has a lot of little payments draining his monthly income and needs to do debt consolidation in order to get relief.
Another way would be to shop around for a Non Profit Credit Counseling program. This is somewhat more difficult as there are not many non profit credit counseling services out there. And many of those are not necessarily staffed by the most clued up staff.

The best way is to look around for a means whereby 1 company with take over and pay off all separate debts and then make up a debt settlement plan. A debt settlement plan is worth doing in any event but is very attractive if one can find a debt settlement plan with low interest rates. It is important to make sure that if one has taken all the debts one has run up and consolidated them into one that one ends up paying less than one was before.

This may be easy depending on your situation. As any Credit Counseling service will tell one it will be easier if one has security. If one can re-finance one’s house then it is possible to easily get a loan with a very low interest rate and very favourable terms which makes the debt consolidation plan very good.

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Do, however, be careful. Even if one has low interest rates it is important that the term of Debt consolidation is not too long. Even low interest over time mounts up. The Objective if a debt consolidation plan is to pay off all debts as quickly as possible, paying as low interest as possible thus paying back a lot less than would otherwise have been the case

One could always be tempted by exploiting the many offers of Competing Credit Card Companies. If one is going to go that route make sure that the terms on offer are fully explained. Make sure that the interest rate is low and that there are no fees for taking over the balances from store cards or other interest bearing loans.

Normally a good debt consolidation plan will be fully laid out with the monthly repayments and the costs of the entire loan planned out. Ensure that one can budget the repayment and that the repayments are manageable.
Then, stick to the debt consolidation plan, make the repayments and avoid running up other debts in the meantime.
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