Credit Card Consolidation Service
Using a credit card consolidation service may be the only way a person has of extricating himself from an ever growing problem that might turn into a full-blown life crisis. Plastic charge debt sits at about nine hundred and seventy billion dollars for American consumers. This translates into about twenty nine hundred dollars for every person in America. Within those figures are those who have no charge card accounts, those who pay off the balances every month, those who have no trouble paying their monthly installment amount and those who are suffocating in unsecured loan debt. Until recent bank failures, charge card accounts were as plentiful as fruit flies on a nine day old banana. Undisciplined borrowers often got new cards to pay for already existing credit accounts. Then rising fuel prices, spikes in grocery items and other everyday purchases slammed these tightrope walking consumers in the face and desperation has ensued.
For many of these consumers, all avenues of loan consolidation are closed. What would have been a fabulous means of covering this unsecured debt, a home equity loan, was used for large ticket items such as boats, cars, vacations, college tuition or other purchases. Financial experts highly tout the use of these low interest APR loans for last resort solutions to high interest charge account debt. But with that availability gone some consumers have looked at loan company lending possibilities but have found that their interest rates are very close to charge account rates so nothing has been saved, let alone solved. The next step then is hiring a credit card consolidation service to provide the answer to their heavy burden.
These services are located online and in many mid to large towns and cities. Many are actually called agencies and have the term "non-profit" tied to their name. In these instances, certain amounts of trust is often attached to their services, but make no mistake, non-profits are allowed to make a profit. Any credit card consolidation service that a consumer uses has developed a relationship with most charge account lenders across the country. In fact, with the exception of payday lenders which will not cooperate with a credit card consolidation service, any unsecured loan, that is, any lending agreement that does not demand collateral will probably be within the consolidation service's bailiwick. God has promised in His Word that those who do not extract usury (high interest on loans) shall be blessed. "He that putteth not out his money to usury, nor taketh reward against the innocent. He that doeth these things shall never be moved." (Psalm 15:5)
A credit card consolidation service is kind of like a big old friendly dog that doesn't care about how much money a person has, what kind of car a person drives, or whether he has a southern drawl or a Northeastern clip. The dog is just glad to see the person and so is the consolidation service. In many cases, these agencies' missions are to help not only relieve the pressure the client is under but also to educate the customer in ways to keep the same crisis from happening again. The service will ask about income and all debts including installment loans and mortgage amounts. Additionally the service will often want to know how much is spent each month for utilities, groceries and other common items in order to know how far to go with each lender in negotiation. The idea is provide real relief for the client so that the program will be a successful venture. Sadly, only forty percent or less of clients stay with these programs until all debt is gone, often due to the uncommitted nature of the client.
Typically a credit card consolidation service can get unsecured debt payments cut in half by lenders. By doing this, the consumer begins to have breathing room and the ability to see light at the end of the tunnel. The goal of the credit card consolidation service is to help the client be out of debt within three to five years, but all of that could be even quicker if the debtor would place some of the newly found extra cash on the monthly payment as well. All payments go first to the consolidation service where a service fee is deducted and then to each lender, and the lender sends an account summary to the client so the progress can be monitored. Remember that installment loans are usually not qualified to be lowered.
Now everything is not sipping root beer floats while on a Sunday afternoon cruise down the lazy river. If a person has ever used a credit counselor before he will most likely not be qualified to use them again; this reality being brought to you by the lenders and not the credit card consolidation service. The other much bigger issue is the very negative impact on a person's credit history and score that can occur as a result of using a consolidation company's services. If a person looks carefully at the provisions of chapter thirteen bankruptcy and consolidation plans, which are almost identical from company to company, the similarities are startling. And a bankruptcy on a credit history is like painting a bulls-eye on male deer during Pennsylvania buck season; you'll get a lot of attention and none of it will be good. While the agencies offering this consolidation help paint a rosy picture, if the picture is turned over, the view is very uninspiring.
Consumer Credit Consolidation ServicesHundreds of people can benefit from consumer credit consolidation services. Almost every person at some point in life will deal with consumer debt in the form of loans, credit card bills and other various forms of regular payments. The process of falling into debt can happen quickly as credit cards pile up and payments come on a regular basis. Many may not realize that they are immersed in such a situation until the bills begin to arrive and find that there is not enough funds to make all the required payments. There are solutions for those who find themselves in situations which seem impossible to escape from. Wise planning and smart choices can go a long way towards gaining better financial footing while simultaneously eliminating loans and saving thousands of dollars in the process.
Consumer credit consolidation services are ideal for those who are burdened by multiple debts and several different bill payments. The average person has credit card bills, a mortgage, insurance, many different payments that all must be paid on a regular basis. Many may feel there is no way out from underneath debt, however there is hope. Loan consolidation has many advantages such as lower rates of interest, lower monthly payments and more. Such a process is made possible when several loans are combined into one, eliminating extra bills and allowing for only a single notification at a regular interval.
A single payment can help to alleviate a lot of stress that can come with finances that are stretched too thin. Many people might feel as if multiple bills way them down in a way that cannot be prevented as there is simply not enough money to make ends meet. Before a person decides to take drastic actions, they should look into consumer credit consolidation services. Such services are there for those who want to get out from under multiple monthly payments. Consolidated debts allow for a single monthly payment versus several, so a person need only keep track of one. Much stress can be alleviated when a person has to only plan for a single payment and have an idea of how much will be required to pay.
There are hundreds of people who might desire to get out of debt quickly but perhaps do not know where to begin. The Internet is an excellent source of information as there are hundreds of web sites run by banks, financial institutions and lending agencies that are full of information on various strategies and services. In fact, consumer credit consolidation services can easily be found by those who know where to look. Many offer free advice and tips as well as counseling. Oftentimes, those who are submerged with multiple debts easily become discouraged, so counseling services are available to offer support and advice and ways in which people in need can get it touch with experts in the field who are ready and willing to help with any sort of financial frustrations that might arise.
Consumer credit consolidation services not only provide assistance to those who have multiple debts, but also advice on how to get out of frustrating finance situations and avoid falling into them again. Actions based on wise decisions help to lay a solid foundation on which a healthy and more stable financial background can be built. Experts in the field who specialize in credit counseling are available to offer support and assistance to those who are in tricky monetary situations. One of the main problems most consumers deal with is dependency on cards. Experts suggest that those in the process of consolidation should stick to as single credit card and avoid relying too heavily on a single line of credit. Customers who are in need should not take for granted the help that can be found. Hope does not have to be lost as there are many ways in which people can recover from multiple debts and limited funding.
There are several benefits to consumer credit consolidation services. Those who choose to do so can end up saving a substantial amount of money in a relatively short period of time. The process of consolidation involves taking multiple debts and bills and combining them all into one. This allows for a single payment versus many. Stress is easily eliminated as people can cease to worry about having to pay several bills at once as a single payment on a regular basis is all that is required. People who might wonder as to how to go about beginning such a process should look into consumer credit consolidation services. Substantial amounts of money can be saved in the long run as a person usually ends up paying a lower amount than they were spread out among several simultaneous payments. The one drawback is that the process might draw a loan out for a longer period of time as lower payments require more time to refund.
Not everyone's financial situation is the same therefore not all methods for solutions will be the same either. Those who offer consumer credit consolidation services recognize the fact that everyone's situation is unique and solutions need to be tailored to fit the need of the individual versus a blanket solution intended to help most. Customer service is important, and most companies offer services that are obtainable and which are meant to provide the best service possible for people who desire to get out of debt fast with possibly some extra cash to spare, "But my God shall supply all your need according to his riches in glory by Christ Jesus" (Philippians 4:19).