subject: Is It Wise To Use A Debt Consolidation Agency And Does It Really Work? [print this page] Author: Hector Milla Author: Hector Milla
For those in financial trouble the debt consolidation question is just that. For those in debt for more than 3 or 4 credit cards, it is probably worth it, providing the right debt settlement company can be hired, and the proper motivation maintained. Paula de la Torre Editor of the "Best Debt Consolidation Services" website -- http://www.ReputableDebtConsolidationCompanies.com -- pointed out; What happens is that you take a loan, presumably at a lower interest rate than the average of the debt you are trying to reduce, pay off the smaller debts, and then pay off the one loan. You need to have the discipline necessary to maintain the new loan. It has been reported that almost 70% of the people consolidating their debt, will end up at the same, or higher load within two years Remember that when consolidating your debts you are hiring a business that charges. After your debt is added up and totaled, what you will have to pay the agency providing the funds, will be higher than what you owe now. Trading one debt for a higher debt seems outrageous, but the monthly payment is, in most cases, lower than the sum of the payments you were making before. Here you may be asked to provide some sort of collateral, or security for the loan. Debt consolidation companies often offer counseling services to those who may not have the discipline necessary, and will assist people in the area of budget management, if necessary. Many will go the extra mile and check in on a consumer, from time to time, just to see how things are going and to give any advice or provide assistance, if requested P. de la Torre added. Debt settlement companies charge a nominal fee in most cases. After the debt is added up the company will add on an interest rate, or fee. This is how they most often get paid, sometimes the fees are requested up front, but you are after all, consolidating because the payments and the budget don't meet! The main point of the debt consolidation is to reduce the amount of monthly payments to a point that is manageable for your budget, and if this can be achieved, then debt settlement is worth it. Further information about trusted and reputable companies for debt consolidation by visiting; http://www.ReputableDebtConsolidationCompanies.comAbout the Author:
Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.
