Free Debt Consolidation
Free debt consolidation is available online, from a wide variety of companies who offer services aimed at helping people who are overwhelmed with credit card or other unsecured debt. These are non-profit firms dedicated to providing free debt consolidations to debtors. They contact a debtor's creditors to negotiate the lowering of interest rates first, then sometimes even get the principal reduced (known as settlement). Then these services can provide consolidating options as well as work out a payment plan. If the plan is followed, debtors can be financially free in five years, and will have paid somewhere between 33 and 60% less than the original amount owed.
Consolidating debts appeals to people because it almost always results in a lower monthly payment. Furthermore, because it combines many creditors, consolidating eliminates multiple payments each month. In addition to free debt consolidations, companies also offer counseling in ways to better handle finances, so the client doesn't end up in the same place again. This is particularly helpful to people who have never known how to budget or plan for a financially secure future. Many people who have taken advantage of the free debt consolidation are surprised at how much farther their money can go after they receive counseling regarding handling finances more wisely.
On the other hand, homeowners may choose home equity loans in order to pay their debts when talking to a financial counselor. As long as there is enough equity in the home, this is a viable option among free debt consolidations. The only drawback of this means of lowering debt is, if one should have to sell the house before the loan is paid off, the loan balance comes out of the proceeds the owner would otherwise receive.
Any of these forms of free debt consolidation will help people with burdensome bills to get relief. The fact that there are many companies offering free debt consolidations means the debtor must take some time to research several of free debt consolidation companies to see which offers are best suited to his/her needs. The differences among companies offering the service may be small, but it is worth finding out rather than blindly picking a name off the list. Creditors who cooperate with the companies in helping a debtor set right his financial affairs are to be commended. The Old Testament speaks of a just creditor in part of Ezekiel 18:7 "And hath not oppressed any, but hath restored to the debtor his pledge..."
A free debt consolidation company is a company that does not charge any additional fees for their service, but do gain a profit in their service in one way or another. It could be through the creditor who receives the balances paid in full as a result of the debt consolidation, or through the interest rate charged on the consolidation loan. When advertising their services, it may be pointed out that it costs the consumer no fee to consolidate. The interest rate is a big concern for most people. Usually those that need to consolidate, do so because it is impossible to make the monthly payments on multiple debts. Bad credit is a result of this.
When a consumer retains help, there may be shock in finding out that the interest rates available to them outweigh the traditional loan fees of another lending institution that is not a free debt consolidation company. These establishments can be an extreme benefit to those that qualify. Caution is suggested when hearing the word "free" anywhere. Most businesses are not giving things away for free. However, it may be more beneficial for a consumer to get a loan from free debt consolidation companies if they have been turned down elsewhere.
An establishment like this can usually be found for those that really need it, or they will not be able to pay their monthly bills. If a consumer is interested in locating the nearest form of help, they should check their local phone book or use an Internet search engine. Each city will have a free debt consolidation company within its boundaries. The national consumer debt has just surpassed 2 trillion dollars. That equates to over $18,000 in debt for each American household. The demand for free debt consolidation companies is on the rise, and with good reason.
Owing someone takes away certain freedoms and reprioritizes an individual's life. God said we can only serve one master. Matthew 6:24 clearly states this: "No man can serve two masters: for either he will hate the one, and love the other; or else he will hold to the one, and despise the other. Ye cannot serve God and mammon." He wants that master to be Him, not our creditors. Finding a quality free debt consolidation company is a step in the right direction for obeying God's word. It can't be done overnight, but can start the process of financial recovery with no out of pocket expenses. Experts recommend that all consumers anticipating working with free debt consolidation companies, check with the BBB or Better Business Bureau for company ratings first.
Debt Consolidation UnsecuredDebt consolidation unsecured loan assistance is one of the top financial management tools available to consumers overburdened with monthly payments and high interest rates. If multiple credit card debt, unforeseen medical bills, and various personal loans find one struggling to meet financial obligations, this option may provide relief. Forty percent of American households are spending more than they earn. Offering thousands of clients a way out of financial bondage, compiling debts has become a common solution to a mounting consumer problem throughout America.
Consolidation companies can implement a financial plan for any consumer who is tired of enduring the burden of mounting bills and monies owed. These companies can provide debt consolidation unsecured loan options for consolidation that is to be applied toward household debt relief. Generally, a secure loan is more commonly granted to clients because of the no-risk financial situation for the company. With collateral backing a transaction, there is a lower risk of loss for the company. A debt consolidation loan is generally one loan taken out by the consumer for the purpose of satisfying multiple, unsecured loans.
These secured loans offer lesser interest rates and one monthly payment lower than all of a client's multiple unsecured loans combined. The savings can be dramatic depending on the interest rates and amount of the loan. A secure loan is possible by putting up any valuable collateral the client may have such as a home or car. A debt consolidation unsecured loan is the second type of loan possible through companies specializing in relief through consolidation. Client's that have no collateral can apply for this and depending on the particular company and the amount borrowed, may receive the loan.
These unsecured loans are more difficult to qualify for since no collateral means more risk to the company. However, if a client is persistent and persuasive in approaching the right consolidation company, an unsecured consolidation loan is a viable option if loan repayment seems likely to the company. If interested in obtaining a debt consolidation unsecured loan, there are many companies offering this loan option to bring debt relief to a household. Check out each company as to their membership in the Better Business Bureau and their standing with the State Attorney General's Office of Consumer Protection. "Give instruction to a wise man, and he will be yet wiser: teach a just man, and he will increase in learning." (Proverbs 9:9)
A debt consolidation mortgage can help combine payments at a lower interest rate, into one monthly payment, thereby making a financial situation more manageable. These are also referred to as home equity loans, where second mortgages taken out on a home. With debt consolidation mortgages, the collateral in the home is then used to secure the loan. There are many companies that will offer a such choices for refinancing, some companies which are viable and some which are not, so research well when considering any sort of refinancing.
These types of mortgages are intended for people who may have accumulated more than they are able to manage on a monthly basis. Some people may find themselves in financial hardship due to unforeseen circumstances such as a loss of income, an increase in excessive interest rates, a medical emergency, the death of a member of the household who provided financial assistance, a divorce, a failed business, a reduction in pay/hours, or unemployment. Other people may have accumulated amounts of money owed on credit cards that they are unable to pay. If there are frequent late payments and little hope of being able to keep up with future payments, a debt consolidation mortgage may be a sensible place to start.
They can be advantageous because they usually are offered at lower interest rates than credit cards or other options. Furthermore, the interest is tax deductible. On the other hand, be cautious about converting unsecured money borrowed into secured debt, which is what is done when credit card payments are rolled into refinancing such as this. This can be disadvantageous with missed payments and eventually default on the debt consolidation mortgage, at which time losing a home may be a risk. In addition, it is important to be cautious about borrowing more than can be afforded to pay back, because lenders often allow borrowing up to 125% of the home's worth in debt consolidation mortgages. Weigh the advantages and disadvantages for the situation. As the borrower, make sure you can afford the monthly payments.
Combining payments into a debt consolidation mortgage can be a good or bad option depending on the specific circumstances. Fortunately, information as well as many financial tools can be found on the Internet to help project the financial benefits or disadvantages of debt consolidation mortgages. When weighing any major financial decision, it is wise to get as much wisdom on the matter as possible, for "every purpose is established by counsel". (Proverbs 20:18)