- Personal Finance»
- Debt & Bankruptcy
Debt Consolidation: Will it help?
No matter what the circumstances were that brought a person into this predicament of financial havoc a Debt Consolidation company might be the answer to some that are desperately behind in their bills. As these companies are all about giving a helping hand, to anyone who has gotten themselves into major financial chaos. It really doesn’t matter why or what it was that brought the person there. These debt consolidation services are offered by either non-profit organizations, churches or by trustees, and each of them works in a similar way as any other debt or bill consolidation program.
These organizations are always ready to assist people regardless of their color, race, age or credit rating, some of them are even free of charge. They function on principals that are based on resolving overdue financial responsibilities through honesty and honor. Their aim is not only to help reduce the financial burden but also to show the debtor ways to live within their means. This is to ensure that no-one falls back into the same debt trap again.
The benefits of getting help from a debt consolidation program are multifaceted. Not only will these companies negotiate reduced rates of interest with the creditors, they will in some cases even try to eliminate them altogether. They will work on excluding accrued late fees which in-turn could bring down the total Owings considerably.
The multiple backward bills will be replaced by a single monthly payment. At the same time, they will set-up a well-planned budget for the debtor to follow thus enabling him or her to pay off the bills in the shortest time possible and avoid bankruptcy altogether. Getting a plan set up by a debt consolidation company also has the extra added benefit of eliminating those pesky sometimes scary collection calls which alone should take a major load off anyone’s shoulders.
This is generally how the whole procedure works. The debtor discloses all of his or her overdue debts, regular ongoing bills and the accurate amount of moneys coming into the household. The dept councilors will negotiate and construct a do-able plan which is specifically geared to each individual’s needs. Each payment that the debtor then makes to the company gets divided up on a pro-rated scale and distributed to the creditors. (ie. the creditor who is owed the largest amount obviously gets the biggest cut)
After following this course or plan set up by a debt consolidation service the debtor will be able to become debt free and feel a totally great sense of accomplishment. Hopefully after having been given a second chance the debtor will have learned enough from this ordeal to live within his or her means and from then on lead a debt free life.
Warning! warning! warning! warning! warning! warning!
Please make sure you read over every contract you are given to the last word. If you do not understand some of it get the councilor to explain each point again or let someone read the contract with you.
I bet the feeling of being able to answer the phone gives you the urge to rush things. However make sure, one hundred percent sure you are dealing with a reputable company and not some scheisters who will take your money and run. That scenario will leave you in a worse predicament than before.
- Learning tips: How to study smart!
The new school year is here once again. Obviously the prime objective for a successful year is to learn and to retain all the given information. So knowing how to effectively study is vital and retaining that...
- How to work out percentages
Most math concepts can be simple if one understands what the question really is... 'Percent' is a two parts word and comes from the latin PER CENTUM translated it means 'Per one hundred' in actual facts the...
- My Hot Picture Gallery---2 Year Hub-versary!
After long soul searching I decided if you can't beat them join them. So here is my contribution to the HOT, HOT, HOT picture gallery. I promise there are even a few hot chicks included. To celebrate my two...
- 1 Year hub-versary!
October 22nd 2007 a day in history... my history that is, a year ago I found my new home away from home. HUBPAGES. To give you the long tour (the short one is just too boring ...I've always wanted to be a...