Borrowing yourself out of a bad debt situation may sound like something out of a comedy sketch, yet debt consolidation is a way out of a nerve-racking problem for many people.
With debt levels
continuously on the rise and a wobbly job market showing no signs of rebound,
it comes as no surprise that many debt-laden folks are consolidating their debt
in an effort to get out of debt sooner and easier.
Lets face it, rolling all your liabilities into one has its advantages,
including the possibility of securing a lower interest rate or a fixed interest
rate.
If you are struggling to pay off your student
loans and have racked up credit card debt that is proving difficult to get rid
of, debt
consolidation may be your ticket out - but don’t sign anything until you
realize everything this type of refinancing entails.
Your first job is to shop around for a debt consolidation counselor and
have a list of queries for them on you when you meet them.
Make sure that the one you have decided to go with has university
credentials, is fully certified with a reputable financial services provider,
and that his or her company offers debt counseling, debt negotiation and debt
management.
Don’t forget to ask if a monthly service fee will be embedded in your new
loan and if there are any other hidden charges you should know about.
Then, tell your lending company if you plan to work with a credit counselor
or intend to use services of a debt consolidation agency.
This may impel them to offer you settlement.
Consider going with a debt consolidation company that is not-for-profit
because the profit-based one may not have your best interests in mind.
If you go with a not-for-profit organisation, remember that its services
also come with a price tag; and it is your job to verify that the organisation
you choose really is nonprofit and not just a loan shark.
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