What is Debt Consolidation?
What is Debt Consolidation Post.com?
First, Debt Consolidation Post.com is a fantastic resource for accurate, consistent and relevant news and information on business, the economy, credit and personal debt. The daily insight provided breaks down current events and discusses how these events affect you, the credit consumer. With this information, you’ll be well informed about managing certain aspects of your finances.
Beyond the resources we make available to better assist you with financial goals, we also provided debt consolidation services, more specifically debt management and debt settlement.
A Debt consolidation solution is best suited for individuals who have unsecured debt of $10,000 or more. Unsecured debt is debt that is not backed by an asset like a car or home. The best example is a credit card.
If you have unsecured debt of $10,000 or more the best place to start is to fill out our contact form to the right. This private contact form provides a debt relief specialist with the initial information necessary to help you with your rising debt obligations.
Why should I contact a debt relief specialist?
Debt consolidation is not for everyone. It will not help with a mortgage or late car payments but is well suited to unsecured debt like credit cards. If you’re over your head in unsecured debt and unable to make payments a late payment (greater than 30 days) will result in a blemish on your credit record (FICO). These negative marks affect your ability to get credit in the future for a car, home, business loan or any other type of installment credit.
Debt consolidation also reduces exposure to bankruptcy by establishing another way to manage your debt. A bankruptcy can remain on a credit report for up to 10 years.
Debt consolidation creates opportunities for you to not only protect your credit but also to reduce balances, reduce interest rates and to set up payment plans that work within your budget. If you’re already late on a payment or believe you will be, act now and find out how a debt relief specialist can help you.
Who and where are the debt relief specialists?
Debt relief specialists are just like you and me but extensively trained in negotiating with credit card companies and other creditors to better your debt position with them. All agents are in the U.S. and have negotiated with all major credit card companies.
What should I expect after filling out this form?
The debt relief specialist will review the basic information provided then they’ll call you to discuss and evaluate thoroughly your financial situation. With your approval, the specialist will begin contacting your creditors to settle or develop a reduced payment plan.
When your specialist takes over, the harassing calls that frequent the collections industry will cease while your plan is developed. Some collection agencies follow federal guidelines for collecting a debt while others can be ruthless. Examples of common collection agencies include Allied Interstate and NCO collection agency though there are hundreds. With the recent downturn in the economy, agencies have become tougher in their collection efforts. If you decide to hold off on contacting a debt relief specialist, be sure that you know the applicable collection laws.
Can’t I just do this on my own?
Absolutely! You can develop your own debt relief plan and begin contacting creditors. This will save the small fee that is charged but you’ll need to learn or already have a working understanding of the procedure involved in consolidating your debt. A debt relief specialist is trained extensively in negotiating with creditors and can save you significant time and loss of earnings while they make the effort for you.
How long will it take to be relieved of my debt and have my credit protected?
Each person’s financial position is unique and a variety of factors are involved but the typical debt plan can be established and paid in full within 2-3 years. This is an average that may not apply to your situation. The best way to assess your situation is to discuss with a debt relief specialist.
How many people use a debt relief specialist?
This number is growing rapidly each day as the recessionary economy continues to unfold. The reality is that hundreds of thousands of people have successfully used debt consolidation to manage their unsecured debt. The process allowed them to reduce debts or debt payments while also protecting their valuable credit rating and eliminating frustrating collection calls and mail.
Getting Started
You have no obligation when submitting your debt relief specialist contact form. The specialist will make a free call to you to thoroughly discuss your financial situation and the debt consolidation solutions available to you.
Debt Consolidation > Why You Need it Now More Than Ever
Are we in the middle of the worst economy since the Great Depression? Only time will tell but the data pouring out does not look good. People are losing their jobs, currently unemployment is at 6.5% and rising. Home foreclosures seem unstoppable regardless of what the government has plans to do and banks are tight with their money, which is making matters worse for small businesses.
We see the trickle-down effect all around us. The best example might be the auto industry and more specifically General Motors who said they need cash NOW. That means not tomorrow or the day after but now, otherwise they will no longer be liquid and operations could cease. This is the result of a 45% decline in auto sales. Similar numbers were reported by Ford and even Toyota.
Back to our example, if GM is struggling to stay afloat then they’re forced to lay-off employees, many of them but it’s not only those directly employed by GM it’s also the suppliers and other businesses related to GM, thousands of them and even more employees that stand to lose their jobs. When people lose their jobs, the money to purchase retail items dries up and the market falls fast.
But what does all of this mean to the individual, the one struggling to make payments each month for auto, home and credit card? For most it means tough times ahead trying to balance minimal cash flow with fixed expenses. Many will default on home loans and cars while others will default on unsecured debt like credit cards and other types of loans.
Defaulting on a car loan (repossession) or home will result in very large black marks on your credit, some that can last 7-10 years, 10 years in the case of a bankruptcy. This can result in denial of credit in the future for simple things like credit cards or the purchase of a TV but it can also result in denial of a future home loan. This doesn’t need to happen but immediate steps must be taken.
We’ve found that many people like to ignore the problem. The pressure is just too much to handle so they ignore the phone calls, decide to not read the mail and effectively shut down and hope the problem goes away. It’s best to realize TODAY that the problem will still be there when you do eventually look at it, but now it will be much larger.
Open your mail, respond to calls and assess your situation. This is not a time to unnecessarily destroy your good credit rating. You might not need it today but you will definitely need it in the future.
If you like sports analogies then consider this one from Wayne Gretzky, when asked how he got to be so good he replied that it’s not where the puck is but knowing where it’s going to be. When it comes to the economy and its effect on personal finance its best to acknowledge where you are but make decisions that will prepare you for the future when things improve, and they will improve. If anything history shows us good times and bad, with bad always preceding good.
We don’t know when things will improve but they will improve, and when they do improve those who took valuable steps during a down time will reap huge benefits in the future.
So where do you start? Assess your situation. Look at your debts and list them out on paper so you know exactly where you are, this is the only way to make an informed decision. Realize that some banks and some creditors are willing to work with you on payment plans other may not be so willing so it just depends.
After assessing your situation start making decisions. Is this something you can pay off on your own over time or are you in completely over your head? Often what seems insurmountable is not but you need a specific plan to get past big hurdles.
Look at your debts and figure which ones are secured (homes and cars) and which ones are unsecured (credit cards etc.). If you are having problems making your home or car payment, call the creditor immediately and see what you can work out. As we mentioned, many banks are willing to work something out so they don’t lose the entire asset. To banks it’s all about the bottom line so some money is better than no money at all.
Most unsecured debts can be handled either on your own or with the help of a debt consolidation company. If you aren’t comfortable contacting your creditors or you’re too tired or too busy with the collection calls then consider signing up. The cost is very low compared to what you save. Your savings can include either a settled amount (reduced amount per agreed upon numbers) or a managed amount where the interest rate is reduced. Typically, the creditor will waive late fees, over-limit fees, and will also bring your payment history current with 3-6 on-time payments in the program. Often times your full debt can be repaid within 1-4 years while saving your most valuable asset, your credit.
The process is simple and there’s really no catch to this. You’re basically hiring a company who’s going to be much better at this than you because they understand the procedure and they have the experience of doing it all day for thousands of customers.
Fill out a simple form, which will ask for basic information like name, email address, phone number and debt amount. Most companies require that the unsecured debt amount be $10,000 or more.
After you’ve filled out a form a debt relief specialist will call you and go over your situation thoroughly. For most the solution is relatively simple, costs very little, pays off your debt and saves your credit. It’s definitely worth the phone call so if you’re struggling with unsecured debt give debt consolidation a try and remember that even if your problems have trickled over to your car payment and home you might be able to manage it all by reducing payments and obligations on part of it.
