The Best Debt Consolidation Method

Burdened by large amounts of credit card debt

, American consumers are seeking the best debt consolidation programs they can find, and there plenty of options. Selecting the right one is the real key to getting out of debt in the most sensible way.

There are basically three consolidation methods. There is basic consolidation, which may or may not require a secured loan. With very much debt at all, this type of consolidation can take years. That's because if a second mortgage or home equity loan is necessary, it is a long term proposition to pay off that type of debt. For smaller amounts of credit card debt, it is possible to forgo the loan and try to get creditors to work with a consumer.

Two of the best debt consolidation programs are debt settlement and debt management. Neither of them require a loan, but in order to be successful, they generally require working with a debt resolution company. Both of these methods rely on expert negotiators working the consumer's creditors to reduce the principle amounts of debt. During this process, the consumer is paying into a monthly account rather than directly to any creditors. The account is insured and managed by the debt relief company, and when there is enough in the account to pay off the newly negotiated amount, it is done. The best debt consolidation method is the one which works the quickest, and gets the consumer back on his or her financial feet again. While debt settlement and debt management have different requirements, the principle of both is the same. Most consumers work their way out of debt in 12-36 months and regain their financial freedom.

The best debt consolidation program is found by doing research and understanding exactly what it consists of, and how it best benefits the consumer. There are companies who promise it will be easy and painless, and that quite simply isn't a fact. Getting out of debt can be a tough process, and while the debt collectors stop calling and the dun notices cease, it is up to the consumer to continue to make payments. That is the contribution that must be made to become debt free. The best debt consolidation program is also the one that fully understands the consumer's financial situation and custom tailors payments around those circumstances. What's best for the consumer ends up being what's best for the creditor too.

by: Vicki Hall

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