Consolidating debt credit debt counseling debt management
The goals for consolidating debt would be the simplify the payment process (having to only pay one lender instead of dozens), and hopefully reduce your overall interest expenses by getting a new loan with interest rates lower than any of the individual loans you’ve consolidated.
As a debt counselor, I receive many calls from people looking to escape a bad debt situation by seeking a new loan.
Before you decide to consolidate your debt, you should know that not all loans are created equally.
Also, it might not be enough if you’re completely swamped in debt Recommendation: If you do not have much debt, or if you rates are not astronomical, this is the most honorable approach.Payday Loans & Title Loans: These are a loan of last resort.The rates are so high that it almost never makes sense to use these as options for getting yourself out of debt..Debt Settlement Plan: Debt Settlement, also known as Debt Relief, is a service where a debt settlement companies withdraw a predetermined amount from your bank account each month that they put into escrow for you.Please note that an individual can settle his/her debt on their own as well. They then negotiate with your creditors to reduce your overall debt amount, and use the money they have been saving up for you to pay off that debt.