- 07
- Oct
Let’s face it—-this economy is the pits and all of us are in a crunch situation of one kind or another. But there are those of us that for whatever reasons, are deeper in debt than others, and need some kind of lifesaver to help us out of the deep water of financial desperation. Bill consolidation is one good way to start saving your financial skin, and there are many ways to approach consolidating your bills.
A good place to start is with a group of services that will act as a intermediary between you and your creditors called Consumer Credit Counseling Services. They will start the ball rolling for your bill consolidation by pooling all your debt into one bucket, you pay them a monthly payment that they in turn use to pay off your creditors one by one every month. They will sort out your finances, work out an arrangement with your creditors, set up a monthly payment plan for you to follow, and then create a budget for you to stick to from then on out, so this financial mess does not reoccur.
Be careful when you are choosing a company to do the bill consolidation for you because there are tons of scam artists out there in this field these days, because of the economy and so many people being over their heads in debt. It is a field rife with opportunists and you have to do your due diligence so that you can find a company that fits your needs, will work with you comfortably within your situation, and will not pressure you to take on another loan to get rid of the ones you already have. The only time that that would be a good option, is if your outstanding debts had high interest rates and the new loan’s rate was much lower; that way you would get rid of all that debt plaguing you and just have the one payment at a much lower interest rate which would save you a lot of money in the long run.
If your credit rating is taking a serious hit because of your out of control debt, then you need to be working with a counseling company that can not only negotiate with the creditors, but will send them a payoff letter when the debt is resolved; clearing the debt once and for all and closing it out. The credit card companies love to see this action, and will adjust your credit rating accordingly as each payoff letter is received by the company and duly noted to the credit rating companies.
There are lots of advantages to dealing with a credit consolidating company in the fact that they can set up a monthly payment plan after you have gone through bill consolidation and as a result, many creditors will agree to waive all or any late fee repayment fines. Monthly payments is a better option for most people because through the counseling company, your creditors have the assurance you will pay your debts. Be advised though, because there are many people who default on their agreement with the debt counseling company, that many companies charge upfront fees to cover those losses. Just be aware of that when choosing a company to intercede for you.
When you find you are in dire straits with your finances and you need someone to take the heat off and do a little negotiating for you with your creditors, then a counseling company is a good idea for working out the details of bill consolidation and getting you back on track. The counselor will assess your situation, negotiate a repayment amount and plan with each of your creditors, set up a monthly payment plan for you to pay to the company, and then set up a budget for the future to keep you on the straight and narrow financially. Even if your credit is bad, there are companies that will work with you and get you straightened out; it may cost you a little more in company fees because of your credit, but hey, that’s a lot cheaper than the hefty fees the credit card companies will slap on you if you try to deal with them directly.
When you are choosing a counseling company, just remember that the best way to insure future success in paying off your debt is to go with a company that will close out your accounts and clear them completely when the outstanding debt has been paid off. The reason for that is we all know the sound of temptation’s call, and if you are left with cleared credit cards, guess what happens——in no time at all you will start using them again——-and the beat goes on. Get rid of your debt once and for all with bill consolidation, and get on with your life.
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