The Truth About Debt Consolidation
August 11th, 2010 | 
Author: 
Some would say Debt Consolidation is nothing more than a “con” because you think you’ve done something about your debt problem. The debt is still there, as are the habits that caused it! This may be true to a certain extent however, obtaining lower interest rates on your debt is always better than continuing with high interest rates.
David Bach, noted financial author, says There is, a simple solution. The one way to create lasting financial change that will help you build real wealth over time is to . . . MAKE YOUR FINANCIAL PLAN AUTOMATIC! Making your financial plan automatic is the one step that virtually guarantees that you won’t fail financially.Why? Because by making it automatic, you will have set yourself up for success. And as you will learn in this little book, you can do this in literally minutes.
How Does Debt Consolidation Work ?
Debt Consolidation helps those with high interest rates obtain low interest rates. Typically, the new rates will range somewhere between 0% to 10 %. Most of the time Debt Consolidation clients are set up on an automatic payment draft. That way they do not have to worry about paying each creditor each month. The payment process to each creditor is done for them. There is no prepayment penalty so clients can always pay more than the minimum amount required. Also participation in Credit Counseling is NOT factored into your FICO® score. Click here for details
Debt consolidation is very appealing because you can obtain lower interest rates and a lower payment amount on the debt you owe. It is not a loan so you do NOT have to qualify or put up any of your assets. The person consolidating their debt always has the option to pay more. It is recommended that you pay as much as possible to get out of debt that much faster. The payments on these programs are typically done automatically. By having the debt consolidation draft done automatically you forget about it. Debt consolidation is the best option for obtaining low interest rates fast without a loan.
Debt Consolidation Example
For example, let’s say you have $30,000 in unsecured debt, at an average interest rate of 20%. Let’s say your total monthly payments on the $30,000 of credit card debt is $660 per month. Without debt consolidation and by paying just the minimum due, the total amount of money you would pay getting this debt paid off would be $396,660.00. If you joined a debt consolidation program, paid a level payment amount each month and your average interest rate was lowered to 10%, the total amount of money you would pay to get your debt paid off would be $38,280.00. Sounds great, doesn’t it? Who wouldn’t want to pay $358,380.00 less in payments?
Debt Consolidation allows you the opportunity to lower interest rates and lower payment amounts however, if you do not change your spending habits you will eventually end up in the same situation you are right now. The best way to do this is to make a budget for yourself. This will help you target non-productive spending. Use our quick budget calculator at www.debtsolutionsusa.com to get started. Debt Solutions USA is a leader in this industry and can help you get out of debt fast. Debt Solutions USA is BBB Accredited and Approved and also have an A+ Rating. Get your free no-obligation quote now at www.DebtSolutionsUSA.com Try Debt Consolidation Today!
Watch the video related to debt consolidation
When people have credit card debt and bad credit, it is difficult to get low interest rates. Learn about credit card debt and low interest rates from a registered financial consultant (RFC) in this free personal finance video. Expert: Patrick Munro Contact: www.northstarnavigator.com Bio: Patrick Munro is a registered financial consultant (RFC) with outstanding sales volume of progressive financial products and solutions to the senior and boomer marketplace. Filmmaker: Reel Media LLC
Help answer the question about debt consolidation
Does debt consolidation work and help improve your credit score?I am really bad with paying bills and my credit has taken a hit these past couple years. I make enough money where I should be able to pay everything with no problem but for some reason I continue to struggle. Do you think a debt consolidation would be best for me and to help me improve my credit score? Does this really work?
Posted in Debt Consolidation | 
Tags: book, compounding, Debt Consolidation, debt solutions, finance, investing, investment, money, saving, savings, stocks
The truth is that you have to do your homework to ensure that the organization is reputable. Let their track record do the talking. An established organization with a good reputation is where you would want to begin.
what propaganda this is.
WARNING! Comex and LBMA are frauds, their gold and silver certificates are frauds, there is no physical gold and silver in their vaults, demand physical delivery immediately or at your next contract expiry date.
Source: GATAorg, Andrew Maquire whisleblower interview on KWN, emails to the CFTC regarding the naked short positions and gold sliver market rigging, by JPM, HSBC, and likwise scam artists.
@NYBankruptcy
Let me guess….you would be the perfect person 2go2 instead of CCCS?
Of course CCCS is funded by credit card companies. Why? Because they rather get paid some rather than none. If CCCS did not exist, consumers would simply TRY to file BK or do use a debt settlement company. If they could not BK, then they would get sued and end up in more financial trouble. CCCS organizations help the consumer work out a payment plan that can work for the consumer not the credit card company
Someone tell this idiot lady that by consumers calling creditors its only going to make it worse. They will garnish you, open door to sue you! DO NOT DO WHAT this idiot is telling you. Do not go with a company that will have you be late on your payments. They are called debt settlement companies. The such scams like EFA or Metrons of the world. Do your research before going with a company. Go with someone who does not require trust account. Good luck and ignore this lady to avoid lawsuits/garnis
If you’re going to go the route of a service make sure it’s a law firm. These companies that aren’t law firm based are useless and complete scams.
I don't think that anyone has answered your question yet. "is there anything i can do.." Your options are limited and i would like to see proof of an 800 fico with more than 5k in credit card bills. All things aside though the task of paying off those accounts is troublesome enough.
You have probably already obtained a 0% interest card to either house the debt so that you don't pay for more than you borrowed or you should do so. Don't take money out of your retirement accounts or your home while the markets are so volatile. Pay and pay and if you feel that you are struggling to pay off the accounts in a year then call the CC companies and see if they will work out an "arrangement". In the near future the banking industry will be very willing to accept all reasonable offers in order to maintain accounts in good standing.
You don't need the help of a third party at this time.
The first half of this video contains excellent information and advice. However I don’t agree with the advice to contact CCCS. Those companies are funded by the credit card industry and can’t be trusted. If you are deep in debt consider the option of filing bankruptcy.
I really don’t get her saying have them “write paid in full on your account” /”have them say you don’t owe taxes”. Yeah like the IRS will just accept that! But Suzie Orman said ……Plus if they get the money how the hell do you know those companies are going to do all the things she said! Those companies aren’t looking to help you get your credit record to look good!
In my opionion I think you can do just as good of a job on your own. I was working through credit solutions and they charged my I believe 15% to handle all of my debt.
I had a car I owed 12,000 on and they got a settlement offer of 6,565 and 6 months to pay. I have since closed my account with credit solutions, and made my own settlement agreement with the car company. I got it down to 5,217.00 and I got 12 months to pay it.
I know this isn't the same as your situation, my accounts were already in collections and charged off and hurting my credit, but I think that those people are just out to get money and you can do whatever it is they are offering to do, for free.
OMG…I HAD THE VERY SAME PROBLEM…but my debt was 7,500…i settled it 2 months ago for 2,800.
you will NOT get the SC until at least 8 months of paying those debts or making monthly payments on time (except the student loans, you can still have the stud. loans but be sure to pay on time). Be sure to save all copies of receipts, settlements etc with the companies you owe money, just in case they do not report your payments to the credit report.
as for the other debts, be sure you are paying on time. they will not disqualify you for having debts, but will disqualify you for not paying on time. try to reach a deal with the company that has your car, try to make a monthly payment plan…then show the paperwork to the investigator, that will show him/her that you intend to pay your debt.
reasons for disqualification:
1-Not being financially responsible
OR
2-Not living within your means= you spend too much for your salary.
by the way…if you file for bankruptcy it will prevent you from obtaining a SC for at least 3 years. reason? because for them is too soon to decide to trust you financially. you have to show them that you can be without financial problems for a long time, that your financial problems are not frequent and that you will not engage in the same behavior over and over again.
Look at this webpage:
http://www.dod.mil/dodgc/doha/industrial/2009.html
those are cases of SC clearances that were denied in 2009, that will give you a view of your situation.
I settled my dept through Precept Financial. It was actually a pretty good experience. I think I ended up paying close to what I owed to begin with, but there was no way I could pay it on the creditors time table, so it worked out for me. Also, I really didn’t want to deal with the collection agencies. Those people are nasty.
Obviosly Suze Orman is not struggling to make payments on her CC debt. Typical of CNBC to support the banks to steer people that are suffering from their creditors back to them. Not once did she mention that the creditors want almost all of the money settled up front before making any arrangement for a payment plan.