January 21, 2018

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Related Articles

Benefits of Debt Settlement

Debt Consolidation vs Debt Settlement

Debt Relief vs Bankruptcy

Pitfalls of Declaring Bankruptcy

Reasons for Debt Consolidation

The Bankruptcy Process Explained

What Is Debt Consolidation?

What Is Debt Negotiation?

What Is Debt Settlement?

What To Do if You're In Debt


Top Consumer Reviews Articles provides unique articles that you won't find anywhere else on the internet. These articles are designed to help you make the most informed decisions possible.

What Is Debt Consolidation?

“Drowning in debt? Give us a call today and we’ll get those creditors off your back for good!”

We’ve all heard the claims from debt-consolidation companies. The catchy television and radio commercials – promising to remove debt and make the endless phone calls from creditors stop – can be enticing for those who truly are drowning in debt. Desperate people can and do fall for these pitches every day, and end up with worse financial troubles than those with which they started.

The Better Business Bureau warns consumers against debt consolidation companies which make the following claims:

  • The ability to remove all debt
  • Warns clients against communicating directly with creditors
  • Offers to pay down debt for an upfront fee from the client
  • Asks client to pay a percentage of the total amount of debt being eliminated
  • The ability to remove negative marks on a client’s credit report
  • The ability to prevent bankruptcy

For every bogus debt consolidation company out there, a legitimate service exists that truly can help consumers who are overwhelmed with debt. But how do consumers tell the difference between a valid company and one that is just out to scam them?

To answer that question, a consumer must first understand what debt consolidation is and what it is not.

The way true debt consolidation is supposed to work is to take multiple sources of debt – such as from credit cards, mortgages, utilities and loans – and combines them into one manageable monthly payment. Properly combining debt can allow the consumer to still meet their financial obligations without draining their bank account each month.

True debt consolidation also should provide certain key benefits to clients who use a debt consolidation service.

One of the biggest benefits to debt consolidation is the reduction of interest rates on loans and credit cards. A big reason consumers get behind on payments and are unable to ever truly pay off debt is because they often are saddled with high interest rates. Even if they make the minimum payment each month, they may never realistically pay off the full amount due to compounding interest rates from month to month.

A quality debt consolidation service will make it a top priority to combine all debt and reduce the overall interest rate being applied to the monthly repayment process. If the company you have chosen does not offer this tactic, then they are not a company with which it is worth doing business.

Debt consolidators also should be able to combine all sources of debt into one monthly payment, and reduce or eliminate all late penalties and fees for their clients.

COMMENTARY: Property tax relief and a debt plan for Texans

Here in McAllen, and across the state of Texas, homeowners and businesses are being crushed by property taxes. Over the past 20 years, property tax collections in Texas have increased by 195 percent. Rising property taxes are undermining private property ...

Published:  Sun, 21 Jan 2018 11:09:00 GMT

Euro Working Group Head Blames Politicians for Greek Crisis, Supports Debt Relief

In an interview with the Athens News Agency, Austrian economist and outgoing chief of the Eurogroup Working Group (EWG) Thomas Wieser blames Greek politicians for the 2008 financial crisis in the country and says he supports Greek debt relief. Asked ...

Published:  Sat, 20 Jan 2018 10:02:00 GMT

Outgoing EWG president Th. Wieser: Debt relief for Greece "highly advisable and highly probable"

Thomas Wieser, the outgoing chief of the Eurogroup Working Group (EWG), is an Austrian economist with extensive experience in macroeconomic policy and EU financial affairs. He ostensibly is one of the few Europeans who have known from the start and "from ...

Published:  Sat, 20 Jan 2018 04:22:00 GMT

Top 10 Jungle Explains Debt Relief: Your 5 Choices in the Financial Jungle

"Debt is an issue that can spiral out of control in a short period of time. The only real way to tackle rising debt is to take action," said Charlie Rose of, "Although it can be incredibly difficult to face up to the fact that you're in ...

Published:  Tue, 16 Jan 2018 14:51:00 GMT

Best Personal Loans for Debt Consolidation

When random purchases, necessary expenses or extravagant splurges catch up with you, the best way to consolidate credit card debt can be through debt consolidation. Debt consolidation is a way to refinance existing debt by taking out a new loan, which can ...

Published:  Wed, 10 Jan 2018 13:00:00 GMT

'I cleared £180,000 of debt in 12 years - such a relief'

A MoneySaver who racked up £180,000 in debt on loans and credit cards has told how she finally became debt-free 12 years later, thanks to the debt charity Stepchange and help from the Forum. Forumite 'Lozzam' says that to this day ...

Published:  Fri, 19 Jan 2018 00:00:00 GMT

Here's How A Student Loan Debt Relief Company Preyed On Its Customers

In the shadowy world of the student loan debt industry, even the companies that call themselves the good guys sometimes deal in the darkness. The Student Loan Assistance Center has positioned itself as a model actor in the country's troubled tangle of ...

Published:  Fri, 12 Jan 2018 21:06:00 GMT

Money Issues In A Relationship And How To Deal With It Shared By National Debt Relief

Money issues in a relationship is a common situation and National Debt Relief shares some tips on how couples can deal with them. The article titled "I Have Debt: Dealing With Money Issues In A Relationship" released January 8, 2018, helps couples ...

Published:  Thu, 18 Jan 2018 23:02:00 GMT

Deposit farmers' debt relief, Andhra Pradesh CM Chandrababu Naidu tells officials

VIJAYAWADA: Chief Minister N Chandrababu Naidu directed officials to deposit the third installment of the debt redemption scheme amount in the bank accounts of the beneficiary farmers within three days. He said that the government was yet to distribute Rs ...

Published:  Tue, 09 Jan 2018 19:17:00 GMT

Liz Weston: How debt consolidation can go wrong

Daniel Montville knew a debt consolidation loan wouldn't solve his financial problems, but the hospice nurse hoped it would give him some breathing room. He had already filed for bankruptcy once, in 2005, and was determined not to do it again. Montville ...

Published:  Tue, 09 Jan 2018 22:10:00 GMT

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