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Helping Hands

Debt has a way of piling up in a sneaky way. Many consumers think that they are wisely managing their money until the day comes when they realize that they are way too deep in debt. The average U.S. household has nearly $10,000 in credit card debt, and that debt is often distributed among multiple accounts, each of which has its own minimum payment requirements.

As most credit card companies have recently increased their minimum monthly payment requirements to approximately 4% of the unpaid balance, paying off a number of credit card accounts at once can be difficult. The sum of the minimum payments can be more than many people can afford to pay. There is a solution, however. It is called debt consolidation.

Debt consolidation is the process or taking out one loan to pay off a number of different loans. By doing that, only one payment need be made each month. Depending on minimum payment requirements for the credit card debt, the single monthly payment could actually be less than the sum of the previous payments, thus easing the burden of retiring the debt.

But where can you get such a loan? While there are companies that advertise heavily that they can provide such loans, you may have other sources of funding at your disposal. Some may be worth pursuing, while others may be poor choices.

Home equity loans – If you own a home, and most people do, you could borrow against whatever equity you have accrued during the time you have been living there. Home equity loans are available from many lenders at affordable interest rates. As a bonus, the interest is deductible from your Federal income tax returns on loans of up to $100,000. Be aware, however, that a home equity loan puts your home at risk if you default on your bills.

Retirement plan or 401(K) – If you have a retirement plan or a 401(K) plan where you work, you may have the option of borrowing against it. The interest rates are quite favorable, and it may seem like you are borrowing from yourself. The downside to this is that your money is not earning interest during the time you have borrowed it, and this lost earning power is lost for good. You can’t make up for interest you didn’t earn.

Insurance – If you have whole or universal life insurance, you may be able to borrow against it. Talk to your insurance agent for details.

Family and friends – Not always the best choice for a loan, but it may be better than nothing. Just remember that many valuable friendships have been lost over loans. If you plan to borrow from friends or relatives, make certain that you can them back in a timely manner.

Most people with problem debts will have one or more of these sources of funding available if they want or need to consolidate their debts. Before you borrow, be sure to weigh all of your options carefully. The last thing you want to do while trying to get out of debt is to make the problem worse.

Debt Consolidation Lenders Getting Help With A Debt Consolidation Service

When you seem to be drowning in debt, turning to debt consolidation can help you get back on solid financial ground. By reducing your interest rates and making your monthly payments more manageable, you can eliminate your debt faster. You will also have additional breathing room in your monthly budget.

Benefits Of Debt Consolidation

Not only does debt consolidation reduce paperwork hassles, it also saves you money. With lower rates on your debt, you have the choice of reducing your debt faster or spending the extra money in other needed areas.

Refinancing your debt also gives you the option to select more favorable loan terms. So you may decide to extend your loan period to further reduce your monthly payment. Or you may want to shorten your loan schedule to get out of debt faster. It is up to you.

Number Of Financing Options

Depending on your finances, you have a number of ways to consolidate your debt. For the cheapest loan, use your home equity. With your equity securing your financing, you get approved for some of the lowest rates and can qualify for tax deductions.

If a home equity loan isnt an option, consider applying for a personal loan. Rates will usually be five to ten points less than credit card rates. There are more limits with a personal loan, such as caps at $25,000 and maximum five year loan periods.

Other option is to transfer credit card debt to a new account. Usually when you open a new credit card, you qualify for especially good deals on balance transfers. In some cases, you dont have to pay any interest. This can give you a chance to really cut your principal.

Be A Smart Credit Shopper

Make sure you get the best deal on financing by being a smart credit shopper. Look at recommended financing companies and ask about loan quotes. Compare these with other offers before signing any contract.

Debt consolidation helps you make your money go farther and get out of debt sooner. Make it part of your larger financial goals to get on track.

A Good Agency For The Consolidation Of Debt That Is Non Profit

There are several good agencies for the consolidation of debt that are non profit. In this article we will look at several of these agencies and what they will offer when it comes to debt consolidation.

Debt Management Credit Counseling Corp., is an agency for the consolidation if debt that is non profit. This agency utilizes the highest quality standards in the industry. They provide education and budget counseling to their clients to teach them to manage their personal finances and provide credit counseling through programs for debt management and personal budgeting.

When you apply for a debt management program through DMCC you will be assigned a Certified Credit Counselor who will ask you a few questions about your debts and the amount of money you make. From there they will review the information and work up a few plans for you to look over. You will work with the credit counselor to pick the best plan to fit your particular situation. You will then sign a contract with DMCC to start the ball rolling.

Your credit counselor will work with your creditors to reduce monthly payments, lower interest rates and reduce or eliminate late charges. You will make one monthly payment to the agency for the consolidation of debt that is non profit. They in turn, will make sure your creditors are paid on time. A fee is usually charged for the services rendered which will be included in the monthly payment. The counselors at DMCC will help you every step of the way and be there to answer any questions you may have.

Below is a list of agencies for the consolidation of debt that are non profit:

- Advantage Credit Counseling Service-Non profit debt management and credit counseling services.

- Advantage Credit Counseling Service-Online version of Cincinnati Credit Counseling Services.

- Alliance Credit Counseling-Nationwide credit counseling-non profit.

- American Family Credit Counseling-Credit counseling and debt consolidation.

- Big Solutions, Inc.- Credit counseling and debt management.

- CCCS of Orange County, California-Non profit counseling agency. Offices also in New York, Delaware Valley PA, New Hampshire, Vermont, Washington, and Idaho.

- Christian Credit Counseling Centers-Counseling on secured and unsecured debt. Offices in Houston TX, and Tulsa OK.

- Clear Point Finacial Solutions-Non profit, credit counseling, and other financial services. Nationwide.

- Consolidated Credit Counseling Services, Inc.-Non profit, debt counseling, financial education, Nationwide.

- Consumer Budget Counseling-Credit Counseling, non profit, Nationwide.

- Consumer Credit Counseling of Greater Dallas, Inc.- Non profit, community service, avoid bankruptcy through education and counseling. Branches in- Atlanta, Central Florida, Oregon, Texas, Los Angeles, Nevada, New Jersey, San Francisco, and Michigan.

This is a partial list of the hundreds of Agencies for the consolidation of debt that are non profit. This should give you a place to start when looking for a good debt counseling company.