Debt Consolidation Information

Question: Is debt consolidation a feasible solution for unemployed?

It depends.

Debt Consolidation has gotten a bad name in some circles because some people don't read the fine print before signing up for a program. Even if your debt is reduced by 50 percent or more you still have to pay the reduced debt. The service puts time and money into getting your debt payments down. Doesn't it make sense that they would come after deadbeats?

Some have operated fraudulently. Here is how to identify the scams:

  • If they ask you for money up front for "fees," it's a scam.
  • If they don't reduce your payments, it's a scam.
  • If they promise you the sky, it's a scam.
  • If they extend the term but leave you with a bigger debt load, well... that's your call, but...
  • (The third point above is true in almost every case when it comes to love or money.)

    The truth is that if you have a lot of unsecured debt, consolidation may make sense. Unlike bankruptcy, debt consolidation will have little effect on your credit rating and can actually improve your credit score. Second, debt consolidation can lower your payments significantly. Third, debt consolidation allows you to make just one payment instead of three or four if you have multiple credit cards.

    The only case where bankruptcy makes more sense is if you absolutely cannot afford to make any payment. In that case, the debt consolidation company will come after you if you fail to pay, and you would be better off going bankrupt.

    This is important: If you do go the debt consolidation route, you still have to modify your spending behavior. It can be all too tempting to spend the money you save because suddenly you have more in your pocket every month. Do not fall into that trap! Debt consolidation is only half the equation. You have to be smarter with your money overall!


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Comments

And if all else fails...

there's good old Chapter 7.
CHB

chuck's picture

Yep

But that's a last resort.

When life hands you sh*t, make fertilizer.

Debt

Hi alll,
I want to make deal with you.

avelino
Debt

chuck's picture

I enjoyed your post on Chinese Medicine

Your blog is decent. I'm leaving your link even though your comment is pretty thin.

When life hands you sh*t, make fertilizer.

Consolidation Debt

The majority of libraries will allow you to copy and print the forms inside the guides. This means you can simply fill in the blanks, submit the forms to the right sources; and you will soon be on your way to debt relief.
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Consolidation Debt

chuck's picture

Easier said than done

What forms and where do you submit them? What, exactly, are you supposed to put in the blanks?

Some debt consolidation services actually earn their money by working for their clients.

When life hands you sh*t, make fertilizer.

Debt management is a

Debt management is a widespread practice in the UK so it is not difficult to find lots of UK debt management companies who are willing to offer their services. The real problem is how to find the ones which are not only trustworthy, but which will provide the most effective plan to get you out of debt. This article gives you the information you need to enable you to find the most reputable debt companies.debtadviceni.com

Angela J. Shirley's picture

Better Business Bureau

In the USA, we use the "Better Business Bureau" to check out organizations.

Angela J. Shirley,How I Keep Income In My Life!

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