Bad Credit Debt Consolidation - - find help with debt right here...
More About Bad Credit Debt Consolidation...
Bad Credit Debt Consolidation
CREDIT COUNSELING AND DEBT MANAGEMENT PLANS
A credit counselor can help you work on your debt when your own efforts have failed or stalled. Be cautious, not all credit counselors actually help you. Some charge outrageous, hidden fees or steer you into a Debt Management Plan (an extreme form of debt consolidation). Some are outright frauds. You want a certified credit counseling agency that is a member of the National Foundation for Credit Counseling. Rather than pay extra to talk to a real expert, you actually pay little or nothing.
A good certified counselor teaches you how to budget and evaluate your debts. They work with you to develop a plan that helps you get out of unnecessary debt. If you need debt consolidation, a certified counselor can help you figure out what kind and how much. They may even be able to refer you to the best place to secure your debt consolidation loan.
A Debt Management Plan (DMP) is not credit counseling or debt consolidation. It is where your creditors agree to special terms, you close accounts and you send your payments to the DMP. At the end of your DMP program, your debts are paid. This is one of the last resorts before bankruptcy. It is not a good alternative to debt consolidation. Your credit counselor should try alternatives, like debt consolidation, before talking about a DMP. DMP's go on your credit report and hurt your credit score. However, with a very good company, a DMP can help in the long run. Just be very careful.
Here are some warning signs of a bad credit counseling agency. First, you should not have to pay high or monthly fees for credit counseling or a DMP. Your creditors, if you enroll in a DMP, pay for the service as a way to help keep you from bankruptcy and ensure they get paid. You should not hear a request for a "voluntary contribution" for either of these programs or a debt consolidation loan. These are fees by another name.
They should send you free information without first getting personal information. This is true for anything. If you feel pressured to enroll in a DMP or they don't review your financial situation first, leave. DMP's should not be their first choice. Even traditional debt consolidation should be considered first. You should not be enrolled in a DMP without first learning budgeting and other financial skills. Finally, your creditors must accept you into a DMP before you make your first payment. Otherwise, you may face bankruptcy.
DEBT NEGOTIATION PROGRAMS
These are not DMP's or debt consolidation. Basically, these programs inform your creditors that you are one step away from bankruptcy. In addition, few debt negotiation firms are reputable. And even if they do get some debt forgiven, that debt is reported as income to the IRS, who taxes you on it. A certified credit counselor will rarely, if ever, steer you this way.
If a DMP or a debt consolidation cannot help you, you will probably end in bankruptcy. That is not to depress you. DMP's are the extreme measure. Most debt negotiation is a scam. Don't land in bankruptcy looking for the best deal on debt consolidation.
Can't pay the bills anymore? Get non-profit, 100% online debt relief.
Click here for more info
Contact |
Bookmark this page! |
Privacy |
| Help |
SiteMap |
Bad Credit Debt Consolidation (Home)
copyright ©2007 fundconsolidation.com
bad credit debt consolidation | private loan consolidation | financial aid loan consolidation | debt consolidation company
Webmasters: this website is hosted by
BlueHost, web hosting for professionals, around the world.
|
