Where Can You Go to Get Free Debt Consolidation?
For most people, they accumulate debt since they didn’t know how to manage their finance. But with time and some organization with the financial aspect of things, they can get out of their money owing problems using debt consolidation. Before you head to one or sign up directly on the internet, you need to get all of the papers that you get in the mail where you have bad debt with such as magazine and CD clubs, book clubs, and anything else that are not a monthly thing such as house and car payments.
Take the time to do research on different companies that you came across and if you can, ask others online and in person what they think of that company and how was their service and if they would actually recommend them to others. Some people might of had bad experience with one so go and check around before making your final decision.
For some people that doesn’t want others to know, there is no way where you can find out on your own to get the information. There are people online that are willing to share their experience with some companies so then you can decide whether to go with one or not. After finding some, call them up and take the chance to talk to some. You need to feel comfortable working with some before using their services.
A lot of legitimate companies would have brochures or catalogs listing the services and the price that they charge of what they do. If you have a hard time understanding, ask one of people that work for that company to have them explain to you more. Ask them for their credentials and if possible to show you a few examples without showing personal information of others.
By the way, by researching and comparing the best debt consolidation companies in the market, you will be able to determine the one that meet your specific financial situation, plus the cheaper interest rates offered. Nonetheless, it is advisable going with a trusted and reputable debt counselor before making any decision, this way you will save time through specialized advise coming from a seasoned debt advisor and money by getting better results in a shorter span of time.
Hector Milla runs the Best Debt Consolidation Company website – where you can see his best rated debt consolidation company recommendation.
Visit for further information and read our full review of the best debt consolidation service, plus articles and video training about how to get the most of your debt consolidation process.
Debt Consolidation FAQ:
Question: How can I find the best debt consolidation program in New Jersey?
I’m trying to become debt free and need help with unsecured debts. Been trying to locate a agent online but, getting kind of frustrated.
Answer: I work in collections for a credit card company, we say just look in the phone book and check with the Better Business Bureau. ALWAYS go with non-profit. The for profit ones will screw you over and most credit card companies will not work with for profit. And remember it can take about 3 months to get this set up with the creditor. Credit counselors have to send proposals to the creditors to be APPROVED. So make sure everything is correct with the creditors and with your credit counselors. And you can still get calls from the creditors until the proposal is accepted.
Question: What is the best way to become debt free?
I have looked and read all kinds of different stuff on debt reduction, debt consolidation,debt settlement. I know that I don’t want to file bankruptcy!! I’m about 8,000 in debt, all mostly being hospital bills. I am a mother who makes about 17,000 a year, and it takes about that much to survive. So I’m trying to figure out a way to get out of debt, be able to afford the payment and it not hurt my credit score.
Answer: Stop borrowing and pay down your debt. You may have to get a 2nd or 3rd job. If you have a car, sell it and get something that’s paid for if your car is not. Don’t bother with people who try to fix your credit, it’s better for you to learn how to manage your own bills instead of just giving the problem to someone else.
Question: What is the best procedure to follow about debt consolidation?
I have a loan and 3 credit cards almost fully used. I just want to know how I can consolidate my 4 payments with one effective payment.
Answer: Start by making a list of monthly expenses – ones that you can’t avoid like food and housing (fixed expenses), and also ones that you can control like entertainment and technology purchases (discretionary spending). Take your monthly income and subtract from that your fixed expenses. This is the amount that you have left to save and use for paying off your debts. Put a freeze on most discretionary spending for now. Get an American Express Green card, which you have to pay off monthly, and get rid of the old credit cards.
If you own a home, consider refinancing your debt into a new mortgage or home equity loan so that the interest is tax deductible. If you don’t own a home, then pay off in either order: Either pay off the highest interest cards first, or pay off the smallest card balance first. The second option can be psychologically rewarding since you can see the progress you are making in completely wiping out each card balance.
It takes discipline, but you can do it!
Question: Can I cancel a credit debt consolidation program with Consumer Education Services inc?
Once entered can I leave the program?
Answer: You need to look at the contract you signed/agreed to. If you don’t know where your copy is, perhaps they have one online. If not, call them and ask for a copy. You might be able to just call them and ask how you can terminate your agreement with them. They may have penalties or fines or exit charges but in the long run, it could be the best way for you to go. Don’t just dust them off without contacting them; they may have legal avenues to go after you. CES is a non-profit firm, but they make money thru the fees you pay to have them manage your payments. Overall, they seem to be a well operated, reputable firm but I’ve never been a client.
Question: Whats the difference between debt consolidation, debt validation and debt settlement?
Answer: Debt consolidation is where you consolidate all outstanding credit card bills into one single loan so you pay all the creditors off. In this case you will just have one single monthly payment to the company that gives you the consolidation loan.
Debt settlement is where you negotiate reduced amounts for outstanding debts, like 50%. You can only do this when you are drastically behind on your debt. Your credit card company is under no obligation to accept settlement offers. However, if you are way behind often they will accept settlements in lieu of loosing everything if you file for BK. Debt settlements are major negative marks on your credit file.
Question: Where can I find a good debt consolidation loan?
With not so great credit and do not own home for equity.
Answer: There is no such thing as a good debt loan. The consolidation loan usually means that the debt is spread over a longer period. Also, the loan company expect their cut as well. A better idea is to contact the companies you are in debt to, explain your position honestly, and they will normally agree a reduced payment plan.
Question: Is it worth to use those debt consolidation companies for tax relief?
I want to get all my financials squared away with the IRS– anyone know the average rate those “tax relief” companies charge? Are they worth it?
Answer: Debt consolidation companies may be able to help with other creditors but can’t get you any relief from taxes because IRS will demand payment ahead of unsecured creditors. You or someone authorized to represent taxpayers would have to handle that job. The tax relief companies that advertise on TV seem to promise that they can get you a pennies on the dollar deal and sometimes can but can never guarantee it. For a typical tax delinquency you are probably looking at fees in the $4,000 range, plus or minus a thousand depending on how much you owe.
Question: Is using a debt consolidation company a good idea?
I would like to use one but have heard some horror stories. What are your experiences (good or bad) with them. What are the best ones to work with?
Answer: Most paid debt consolidation companies are not a good idea. They are essentially greatly overcharging you to initiate services on your behalf that you have a legal right to under Chapter 13 Bankruptcy (Wage Earners Plan).
Wage Earner’s Plan under bankruptcy is a personal reorganization with the intent of paying back your debts, but under revised terms that allow you to do so (lower rates, longer time)
Search Chapter 13 and Wage Earner’s Plan under government sites, particularly U.S. district courts, for more information.