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Debt The Cause
Money problems can be caused by divorce, loss of a job,
overspending on credit cards, store cards and purchases. Many who
are struggling with credit card payments and loan debts simply bury
the heads in the sand. Debt Consolidation Services are available in
many forms.
Debt Management
Companies offering Debt Management services or are able to use
their experience to renegotiate some of the payments you are making
to creditors on your behalf, either through arranging for the
suspension of interest, or through arranging to settle outstanding
credit accounts by making a fixed payment. Debt Management companies
often also offer personal financial planning services, and advice on
other ways to reduce your outgoings.
With a debt management programme instead of making a number of
separate payments to different finance and companies, you will only
need to make one payment each month to the debt management company.
Since the company will be able to negotiate a lower rate of
interest, suspension of interest, or partial repayment to settle
your debt in full, the payments you make to the debt management
company each month will be much lower than the payments you would
make separately to each individual provider.
A typical Debt Management programme will last for between one and three
years, resulting in a much lower credit obligation at the end of this period.
Pros:
Addresses the issue directly.
Cons:
Ruins your credit rating
Difficult to obtain future credit anywhere
Agencies offering this service take fees and profit from this
service in various ways.
Debt Consolidation Loans
This method allows you to consolidate all your existing debts
whether they are credit cards, store cards, personal loans, or
overdraft debts into one single monthly payment debt consolidation
loan. As you can borrow larger amounts, the interest rate is likely
to be much lower than the rate you are paying on each separate
account. With a single loan payment, your finances will be much
easier to manage than having several different payments to worry
about.
Pros:
Single Payment
Lower Interest Rates
Finances become More Manageble
Cons
Easy to spend money saved
Doesnt Address your Spending Habits
Longer Loan periods
What Now?
Now you have the basics it is up to you to decide your coarse of
action. below are a few sites to get you started.
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