subject: Debt Relief Solutions - How Debt Consolidation Could Save You Some Money [print this page] Wondering if debt relief solutions can help you to get out of your unmanageable debts? Yes it can. Debt consolidation as one of the methods of debt relief can help you to not only get out of debt but also help you to save some money! Let us find out how!
If you are troubled with huge unsecured debts then, the best thing that you can do is to first ensure that the debts are gathered in one place. This is called debt consolidation. There are two methods of consolidation. If you have a number of credit card debts, you can select a card which has the least rate of interest and the call the creditor and request for balance transfer from all the cards. The creditor will then pay off all the other creditors and the balance amounts from all the cards will get transferred to the card you selected.
The other way round is to approach a different creditor and ask for a consolidation loan! The creditor will issue the loan at an interest rate which is little higher than other credits that you have. This is because of the fact that the creditor will be taking a risk by giving a consolidation loan to you. To cover up for this risk, the rate of interest will be a little high. After you get the consolidation loan, repay all the existing loans with that money. This is how you consolidate the debts that you have.
Once consolidation is done, hire a professional debt settlement company which is certified by TASC. The negotiator will advise you to stop paying the creditor so that he can prove that you are in financial trouble. After you stop paying the creditor, the creditor will wait for 3-4 months and then sell off the debt to a collection agency for as low as 20-30 cents per dollar.
The negotiator will then contact the creditor and offer 30-50 cents and threaten of bankruptcy in case the creditor declines the offer. The creditor will then accept the deal and will eliminate at least 50% and up t0 70% of the debt that you have. This is how debt consolidation can help you to save some money!
Debt settlement is the best alternative to filing bankruptcy and the new regulations have made the process a much better deal for consumers.
Debt Relief Solutions - How Debt Consolidation Could Save You Some Money
