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      April 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

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Top 5 Reasons to Consider Debt Consolidation

The term debt consolidation is often thought of as referring to a debt consolidation loan, but that's not actually the case. Debt consolidation refers to the act of consolidating bills into one monthly payment without actually being granted a loan. If you have ever heard of a debt consolidation company, then you may already know how the process works. If not, this article will explain the process and why it may be beneficial for anyone who is in need of valid debt relief.

Have you ever been late with a credit card bill? If so, how many times has the issuing bank called you before your second payment was even due? If you miss one single payment, the telephone begins to ring and you instantly recognize the importance of debt relief. If you miss two consecutive payments, you can forget about having any peace within your household. The collections department that serves most creditors is ruthless and the people on the phones are considerably less than pleasant. After a period of three months in a debt consolidation program, the majority of collection calls will stop.

A debt consolidation company attempts to work with your creditors in order to get you a lower monthly payment. If you are already behind with your payments, it may be time to consider the real possibility that you are in need of debt relief. A more affordable monthly payment is all that many debtors need to help get them back on track with finances.

One of the greatest drawbacks to credit card debt is the high interest rates that often accompany an account. Some lenders may offer a zero or low introductory APR (Annual Percentage Rate), but the keyword in that sentence is "introductory". Once that period expires, the APR will increase to the preset amount as described in a cardholder's agreement. When interest rates get out of hand, less of your payment is actually being applied to the principal balance. Essentially, you may be paying for nothing more than interest or, in the worst case scenario, you may be going deeper into debt every month. A debt consolidation company attempts to get interest rates lowered or, in some cases, even eliminated throughout the course of their customized debt relief repayment program.

Although a debt consolidation company does not provide a loan, they do collect one lump sum payment from you each month that will then be distributed to your creditors according to the agreed upon budget. If you have 5, 10 or even 15 bills due each month, it can be a daunting task to keep up with due dates. By having one lump sum payment due on the same day each month, you will be effectively controlling your own payment schedule and will lessen the likelihood of forgetting to submit payment.

The last, but certainly not least, important reason to consider a debt consolidation program is because it can help you to get out of debt much faster than if you were to continue paying the minimum monthly payments, high interest rates and miscellaneous penalty fees. In most cases, creditors will stop charging late and overlimit fees after 1-3 months of consecutive payments through a debt consolidation program. Generally, it can take as many as 15 years to pay off one single credit card under normal circumstances. With the help of a debt consolidation program, you may be debt free sooner than you ever thought possible.

EU, IMF mull Greek debt relief; no talks on bailout extension

WASHINGTON (Reuters) - The euro zone and International Monetary Fund are discussing options for future debt relief for Greece at meetings this week in Washington, but are not considering any extensions of the Greek bailout, top euro zone officials said on ...

Published:  Thu, 19 Apr 2018 13:29:00 GMT



Debt settlement plan: 5 questions to ask before resorting to this option to pay off bills

That's often the case for those thinking about debt settlement, where a company provides debt relief by negotiating with your creditors to accept lower payments. Choosing this option can come with pitfalls and should be a last resort if you need help ...

Published:  Wed, 18 Apr 2018 08:12:00 GMT



FTC settles with 3 marketers who allegedly sold phony debt relief services

WASHINGTON (Legal Newsline) - The Federal Trade Commission (FTC) announced April 12 that three marketers have been banned from selling debt relief, credit repair and financial products and services after allegedly selling phony debt relief services.

Published:  Fri, 20 Apr 2018 09:33:00 GMT



A Debt Crisis Seems To Have Come Out Of Nowhere

What about that massive debt forgiveness for 36 countries that you helped broker back in the 1990s - the "debt relief" campaign made so famous by celebrities like the rock star Bono. Wasn't that agreement supposed to end debt crises like these once and ...

Published:  Fri, 20 Apr 2018 12:24:00 GMT



Greek debt relief on agenda for Washington talks - German official

BERLIN, April 17 (Reuters) - The International Monetary Fund (IMF), the European Central Bank and euro zone finance ministers will discuss measures to ease Greece's debt burden once its bailout expires in August in Washington this week, a senior German ...

Published:  Tue, 17 Apr 2018 05:46:00 GMT



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