1. Create A Smart Debt Consolidation Plan With These Tips
Debt consolidation can be an easy way to help you manage your debt. It won't fix the root
cause, but it can help you breathe a bit while you figure things out. Are you continually
accumulating more and more debt that you just cannot manage anymore? If so, read this
article for excellent debt consolidation advice.
When you are looking into debt consolidation options, don't assume that a company
advertised as non-profit is completely worthy of your trust or that they won't be charging you
a lot. Scammers often find a way to get the non-profit label in order to trick unsuspecting
people into bad loans. Go with a group that was personally recommended to you or look at
the BBB.
Avoid picking any debt consolidation company just because it claims to be non-profit. Non-
profit doesn't always mean they are a good company. Check the company out with the BBB
first.
Find out if bankruptcy is an option for you. Your credit will gain a bad mark if you file, no
matter the type of bankruptcy. But, if you have no way to pay down your debts and you're
missing payments, your credit could be irreparable already. Bankruptcy allows you to lower
your debt and put you back on the path towards financial health.
Find out how a company is calculating your interest rate. The best option is a fixed interest
rate. This way you know the amount you will be paying for the duration of the loan. With an
interest rate that varies, you may end up paying more with debt consolidation than you would
have paid without it. Frequently, you end up making more interest payments than what you
had originally expected.
Research any debt consolidation company that interests you and try reading various
consumer reviews for them. Use reviews written by clients to find a professional who is
reliable enough to help you manage your finances.
While debt consolidation can be a wonderful option, you have to be sure you're not being
scammed. If something smells fishy, it probably is. Ask a potential lenders many questions
and prior to agreeing to anything with them, have these questions answered.
You can pay off the higher interest credit cards via some money from a retirement fund or
401K plan. Do not consider this unless you know for sure you can pay back the amount
withdrawn. If you don't, you will pay huge fees.
What has caused you to have so much debt? Before you consider debt consolidation, you
must figure this out. If you are unable to determine the cause, you will likely end up in this
boat again. Discover the problem's root, fix it, and move forward!

2. Before using a debt consolidation company, be sure you ask about their fees. The fees need
to be provided in writing and explained fully. Be aware of how the consolidator will be splitting
the payment between your different creditors. The consolidation firm should give you a
schedule showing when each creditor will receive a payment.
Write down the details on all the debt you have. You should outline the amount outstanding,
the due date, the interest rate and the size of your typical monthly payment. You'll need this
information for debt consolidation purposes.
Debt can be overwhelming. This information can help get you out of the hole that you are in.
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