The debt help industry is doing brisk business and helping out debtors but it is also receiving a lot of criticism as state attorney generals, regulators, the Federal Trade Commission and above all consumers are suspecting foul play in the manner in which the debt relief companies are operating. Lately, the debt consolidation companies as well as debt settlement companies have come under scrutiny.
Reports suggest that as far as debt settlement industry is concerned, a bill AB350 has been passed that will henceforth regulate the debt settlement companies. Studies reveal that in many states, debt relief activities are regulated. There are few states where pending bills related to debt settlement are waiting to be passed.
One of the common complaints against the debt consolidation companies is that they charge very high upfront fees and take additional fees every month for negotiating with creditors. Majority of the companies take their fees before delivering what they promise. This is very much disturbing as instances of dropouts are not uncommon. So, if a debtor who has enrolled for a debt consolidation program drops out, he will be losing his entire cash without getting what he was promised. This will worsen matters for him because he will be losing money when he needs it the most.
Is the money debtors spend on a debt consolidation program worth it?
A section of debtors think that debt consolidation only “reorganizes” debts to a certain extent. When a debtor enrolls for a debt consolidation program, a repayment plan is worked out taking into consideration the other financial obligations of the debtor and his repayment capacity. However, if the debtor has to shell out cash for an unforeseen event that drains out a considerable amount of cash, he is left in the same position from where he started. This is why many debtors are reluctant to enroll for a debt consolidation program and prefer a debt settlement program instead where the outstanding balance of the debt is reduced.
However, if all debt consolidation companies were unreliable, the debt consolidation industry or the debt help industry for that matter wouldn’t have been flourishing the way it is today. In fact the Better Business Bureau urges consumers to develop awareness of the debt help option they are enrolling for. By doing so, it will be difficult for the unreliable debt consolidation or debt help companies to take debtors for a ride. Ignorance isn’t bliss always!
Contributed by Debt Community Member.
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Bad Credit Consolidation Loans - Deal With High Interest Rates
Senin, 06 Juli 2009
Bad credit records tend to pull you backwards and they drain you financially. This is because every where you go in search of financial services, you are charged high interest rates. However, there is hope for this situation because you can seek to consolidate the debts that are overwhelming you. If you are wondering how to do it while you do not even have sufficient funds to do so, the answer lies in going for a consolidation loan.
You need to hire the services of a debt settlement professional who will assist and advice you accordingly and will help you go through the process. The advantage with this is that you will be able to save more and at the same time cut back on the repayment period. This could bring down your repayment period from 20 years to as low as 48 months. At the end of the day you save much more.
Unsecured loans, bills and credit cards are just some of the debts that could be dealt with in this manner. There are many firms that deal with consolidation of debts and in most cases, the fees they charge for the services are relatively realistic as well as affordable. If you want to qualify for a considerable amount of money that will be enough to cover all your debts, you need to be truthful to the consolidation firm.
Consolidation helps you to get over your financial distress rather fast. This is because you do away with all the outstanding debts instantly and you are left with only one lender to sort out. In fact, this is a perfect opportunity for you to rebuild your financial image and to restore your worth. This you can do by making prompt installments and being sure not to default on payment.
Source
http://gitundu.com/credit
You need to hire the services of a debt settlement professional who will assist and advice you accordingly and will help you go through the process. The advantage with this is that you will be able to save more and at the same time cut back on the repayment period. This could bring down your repayment period from 20 years to as low as 48 months. At the end of the day you save much more.
Unsecured loans, bills and credit cards are just some of the debts that could be dealt with in this manner. There are many firms that deal with consolidation of debts and in most cases, the fees they charge for the services are relatively realistic as well as affordable. If you want to qualify for a considerable amount of money that will be enough to cover all your debts, you need to be truthful to the consolidation firm.
Consolidation helps you to get over your financial distress rather fast. This is because you do away with all the outstanding debts instantly and you are left with only one lender to sort out. In fact, this is a perfect opportunity for you to rebuild your financial image and to restore your worth. This you can do by making prompt installments and being sure not to default on payment.
Source
http://gitundu.com/credit
Bad Credit Debt Consolidation Loan
Are you looking to consolidate credit card or other debt? Do you have bad credit history? There are many options available online nowadays to help you consolidate your debt. Whether you are wanting to consolidate credit card debt or other kinds of debt, it can be overwhelming searching online to find the best ones for your situation. Here is a short overview of what kind of debt services are available online.
If you are looking for a loan to consolidate your debt, you will need to qualify for the loan, just like any other loan. If you have a home, you may be able to get an equity loan using your equity or even go over the appraised value of your home in order to get the financing you need.
You may be able to qualify for an unsecured loan, which can consolidate your debt with one low monthly payment with no ties to any of your assets.
There are other companies that will help you manage your debt without having to use another loan. These companies usually charge you a fee and then help negotiate lower interest rates with your creditors and manage your monthly payments. There are various ways to do this and every company is different. Usually these techniques will save you money to start paying down the principle on your credit balances.
Some of these companies are definitely worth the small monthly fee, and can save you much more than they charge. But, some of these companies are not legitimate and can take your monthly payments and keep them for a month or more before they make your payments (collecting interest on the money all the while), causing you to accrue late fees and possibly collections. These companies can actually cost you money and make your situation worse.
Be careful when searching for debt consolidation companies to work with. Make sure they are legitimate, long standing companies before you sign on the dotted line. To see our list of recommended debt consolidation lenders click on the link below.
Consolidating your debt can provide great relief and breathing room when it comes time to pay your bills. Sometimes, when you are up to the hilt in debt, it can be so overwhelming just keeping up with your bills that it can be difficult to think about ways to start paying the debt down.
To see our list of recommended debt consolidation service companies, visit this page:
Recommended Bad Credit Debt Consolidation Services and Lenders.
If you are looking for a loan to consolidate your debt, you will need to qualify for the loan, just like any other loan. If you have a home, you may be able to get an equity loan using your equity or even go over the appraised value of your home in order to get the financing you need.
You may be able to qualify for an unsecured loan, which can consolidate your debt with one low monthly payment with no ties to any of your assets.
There are other companies that will help you manage your debt without having to use another loan. These companies usually charge you a fee and then help negotiate lower interest rates with your creditors and manage your monthly payments. There are various ways to do this and every company is different. Usually these techniques will save you money to start paying down the principle on your credit balances.
Some of these companies are definitely worth the small monthly fee, and can save you much more than they charge. But, some of these companies are not legitimate and can take your monthly payments and keep them for a month or more before they make your payments (collecting interest on the money all the while), causing you to accrue late fees and possibly collections. These companies can actually cost you money and make your situation worse.
Be careful when searching for debt consolidation companies to work with. Make sure they are legitimate, long standing companies before you sign on the dotted line. To see our list of recommended debt consolidation lenders click on the link below.
Consolidating your debt can provide great relief and breathing room when it comes time to pay your bills. Sometimes, when you are up to the hilt in debt, it can be so overwhelming just keeping up with your bills that it can be difficult to think about ways to start paying the debt down.
To see our list of recommended debt consolidation service companies, visit this page:
Recommended Bad Credit Debt Consolidation Services and Lenders.
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