Want to buy something but don’t have the money to buy it right away? The best way out is get a loan… at least, that is what most people think. Increasingly loan has become a way of life – be it a personal loan, a credit card debt, or some other kind of loan.
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Before realization hits the mind, you find yourself caught in a web of debts. For all those of you stuck in this spot, debt consolidation loan is the perfect answer to your prayers. Simply, as the name suggests, it means consolidating various unsecured loans into one single unsecured loan or secured loan (against an asset which acts as a collateral).
Living with plastic money and credit all your life, when do you decide that it is about time? When you are using one credit card to pay off another or loaning more money to pay off a debt, it is an indication that the time for you to take a re-look at your finances has arrived. Soon you will realize that you are having problem paying off your monthly payments.
It is time to put an end to all of this, re-vamp your financial plan and gain your mental peace. Enroll into a debt consolidation plan and dramatically reduce your interest rate and principal balance working your way towards a debt free life.
There are various debt consolidation companies available in the market. Most of them offer free debt counseling, which assists to pick a plan best suited for your individual purpose. The company negotiates with your creditors and fixes a debt repayment plan for you.
Free debt consolidation services
It is obviously advisable to find companies offering free debt consolidation services. However it is time to become alert every time you hear the word free, as nothing ever comes free. There is a catch somewhere. There are also non-profit debt consolidation companies. They get their funds from government and charity so that they can offer these services free of cost or at minimal fee possible. It is often difficult to spot a proper one. Only after a reasonable examination should you enter a repayment plan picked by these companies.
Credit card debt consolidation services
Credit card is the easiest way possible to work yourself into a financial crisis. On an average, credit card purchases exceed cash purchases by 112%. Going by the prevailing interest rates, it is said that the credit card owners are paying three times the principal amount to pay off the debts. Every American possesses more than one credit card at some point.
When you hit the red alert zone of paying much more interests than you ought to, it is time to consolidate your credit card debt. The way to do it is by cutting down on the high rate of interests on your old credit card. You basically consolidate a few credit card debts into a new single credit card debt by paying lesser interest rate as compared to the amount paying multiple bills. It is as simple as moving your payments from two different high interest credit cards to a third one with a relatively much lower interest rate.
The best consolidation plans are to either avail a low interest home equity loan and pay off all your credit card debts at one go or to approach a bank for a low interest or a zero interest loan.
Bad debt consolidation loans
With the help of credit solutions services, debt consolidation for people with bad credit is now possible. This is one of the fastest ways to get rid of your loans. Credit solutions will negotiate with all your creditors and chart out a re-structured payment plan for you, resulting in drastically cutting down the interest rates.
Christian debt consolidation services
Here it is believed that one has to honor his/her bills and debts, meaning a true Christian is responsible for paying off his/her debts. It is almost like any other program but runs by the guidelines of Christian values.
It is estimated that close to half of America lives in knee-deep debts and 96% of the Americans will depend on charity, family or government after their retirement. Therefore, if you want a secured, tension-free future – act fast, act now!
Thank you for your information about debt consolidation services/companies. It has helped me a lot in my financial planning.