WebsiteAlways.com


Debt Consolidation Primer - Four Things You Can Do to Get Out of Debt


Problem debt is rampant throughout America. In addition to mortgages and auto loans, the average household in the U.S. has nearly $10,000 in credit card debt. As the major credit card companies have recently doubled their minimum payment requirements, now is a good time to outline the various options available to most consumers who have more debt than they can handle.

  • Stop spending money on nonessential items. "Nonessential" is difficult to define, but it more or less means anything that isn't absolutely necessary to live. Phone bills, mortgages, and groceries are essential. Lattes at Starbucks, satellite television, and meals from fast food restaurants are not. By cutting out all extra spending, you can probably save several hundred dollars per month. That money can be used to reduce debt.
  • Consolidate your debt. If you have more than one credit card and your accounts aren't all at their limit, you can transfer balances from higher-interest accounts to those with lower interest accounts. Alternatively, if you own a home, you probably have accumulated some equity. You can obtain a home equity loan or line of credit and transfer some of your debt to that loan. As a bonus, the interest on home equity loans is tax deductible. Be careful, though. If you transfer your debt to a home equity loan, you can lose your home if you do not repay it.
  • Find a reputable credit counselor. This will soon be a prerequisite to filing for bankruptcy, thanks to a recently passed Federal law. Counseling agencies can negotiate with your creditors to help you establish a repayment plan that you can afford. They may be able to have interest rates reduced or have late fees waived. Most agencies charge for their services, but the reputable ones limite their fees to what you can afford to pay.
  • File for bankruptcy. This is not a decision to be taken lightly, as a bankruptcy filing will remain on your credit record for ten years. By filing for bankruptcy, you declare to the courts that you cannot repay your debts. Most consumers are currently allowed to file under Chapter 7 of the Federal code, which allows the courts to wipe out most debts. This will change this fall, as recently passed Federal legislation takes place. The new regulations will likely require a repayment schedule, and attorney, and higher filing fees. Bankruptcy can help you get a fresh start, but it's not a magic solution. It will be quite difficult to reestablish credit after a bankruptcy filing
  • Having more debt than you can handle is a serious problem, but like most problems, it is one that has available solutions. The first step is to act promptly, as unattended debts only grow larger. With time, patience and diligence, most consumers can overcome the burden of excessive debt.

    ©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a site devoted to establishing credit, debt consolidation and credit counseling.


    MORE RESOURCES:

    Business is booming for debt-consolidation companies as more ...
    Bizjournals.com, NC - Nov 17, 2008
    Jack Craven’s firm has seen his work increase by more than 25 percent this year. “Last month was the biggest month we ever had,” said Craven, president of ...


    Athens Township: ATA Prez.: Debt consolidation could eliminate ...
    Morning Times, PA - Nov 17, 2008
    Debt consolidation has worked well for other municipalities facing similar situations, said Steiner. “That was one of the recommendations we got from our ...


    Budgets help curb holiday spending
    Belleville News Democrat,  USA - Nov 19, 2008
    Debt Consolidation Guides (www.debtguides .org/debtconsolidation .html) --Discusses types of debt, debt management and debt solutions. ...


    5 Predatory Money Pitches
    U.S. News & World Report, DC - 11 hours ago
    Debt consolidation—Many of these companies charge you money for a service that is often available for free from a community group or other local nonprofit ...


    Demand For Debt Consolidation Expected To Rise Despite Rate Cut
    PR Web (press release), WA - Nov 9, 2008
    Demand for unsecured loans for debt consolidation will continue to rise despite the Bank slashing the base rate to 3.0 per cent, it is predicted. ...


    Freedom Debt Relief Offers Answers, Clarity for Those Struggling ...
    PR Web (press release), WA - 18 hours ago
    Debt consolidation rolls multiple debts into one loan or into a mortgage. It may or may not bring lower payments. Borrowers using a mortgage to consolidate ...


    Mortgage company expands to Mass.
    Boston Globe, United States - 7 hours ago
    Gold Star, which opened in 2000, offers services in retail and commercial mortgage loans, insurance, debt consolidation and financial planning. ...


    Best Syndication

    Homeowner Debt Consolidation: Removes Debts Instantly
    Best Syndication, CA - Nov 4, 2008
    If you are a homeowner and want to get out of the debts, then you should consider availing homeowner debt consolidation. Homeowner debt consolidation is a ...


    Best Syndication

    Debt Consolidation Benefits: Advantageous Way Of Repaying Debts
    Best Syndication, CA - Oct 31, 2008
    Debt consolidation is one of the more popular ones. It is a method that eases the repayment on your multiple debts. All you debts are consolidated under a ...


    Debt consolidation 'may be advised'
    JST Financial Ltd., UK - Nov 13, 2008
    Debt consolidation may be advisable for Britons who are struggling to make ends meet during the credit crunch, with one sector commentator claiming that ...

    Debt-Consolidation - Google News

    Interesting articles | Home | site map | Link
    © 2006
    Thailand Tourism Breast enlargement Jobs Mahoubi.net Free Online Dating | Free personals | Married personals | Totally free personals | Dating online lakeland fl | Free dating sites | Travel Vacations | Multiple listing service real estate