22 Jun 09 Credit Card Debt Consolidation Companies Don t Get Scammed Checklist

Credit Card Debt Consolidation Companies Don t Get Scammed Checklist
The reasons are varied as to why so many people get into debt One minute every thing seems comfortable and affordable, and then suddenly the realization hits you that you have financially extended yourself too far and those payments you were comfortably making before seem like an insurmountable mountain to cover Increasing bills and credit card statements that never seem to go down drive you insane and there seems to be little, if any, light at the end of the tunnel This is when companies that deal with debt negotiation can be of help, or not as I will explain . .Credit card debt consolidation is a financial product that has been provided by reputable debt management companies for years and it has provided debt relief to many, but there are quite a few unscrupulous companies that are preying on those of us who are desperately looking for help These shysters have caused heartache and misery to thousands who are already tormented by the burden of severe debt . .These unscrupulous companies will take your money and tell you blatant lies, stating they are paying your creditors when in fact they are pocketing your money Eventually the penny drops with a resounding thud when all of a sudden the mailings and calls from your creditors, the same ones that you have been told to ignore by your ’so-called’ debt management company, turn into court documents and you end up being sued by your creditors for nonpayment As a result of this your credit score is well and truly trashed! . .Usually, when people start to look for credit card debt consolidation services they start searching for them on the internet where you will find dozens of companies all claiming to be able to save you thousands and thereby eliminating your unsecured debt well ahead of schedule They do this by using their relationships with creditors and also their expertise in negotiating down your debt . .You will probably be tempted to use those companies that claim to be nonprofit organizations and whose ethos is to work towards giving debt relief to those most in need Claims of debt reduction of anywhere between 10 and 50 percent are often made . .There are some excellent debt management services out there, dealing with credit card debt consolidation specifically, who can and will reduce your debt to an affordable level, and the percentage levels mentioned previously that relate to the level of debt reduction can be achieved in most cases, however, there are companies out there that will scam you so take heed of the following advice . .In order to avoid being one of the innocently scammed use this checklist: . . * Check out any companies you are considering using on the better business bureau website (www bbb org) You will be able to find out a lot about a company on this site, take special note of any negative feedback Be especially wary of new companies; if they have the muscle to mount an expensive ad campaign they should be ok but if you have never heard of them stay well away! . * If a company suggests that you stop making payments to your creditors whilst they are negotiating with them and pay them instead, stay away! You should always continue to make payments to your creditors even if you cannot manage to pay the full amount . * You are told that debt negotiation will take six months and in the meantime pay the management company Rubbish! Reputable companies have excellent working relationships with your creditors and your creditors have a specific department for dealing with these issues The long and short of it is that both your creditors and your management company have a set of negotiation plans that are designed not to prolong negotiation and invariably the vast majority of negotiations take little more than a month tops! It is in nobody’s interest to drag this out apart from a scamming management company . * Leave well alone if you are promised that all the negative information will be removed from your credit report after negotiations have finished and agreed payment structures are in place The only way that information will be removed from your credit report is if you prove it to be wrong or it has exceeded 7 years . * If you have signed with a debt management company and you continue to receive mailings or calls from your creditors then reply to them asking why they are not contacting your debt management company directly; if there is no agreement in place your creditor will continue to contact you! Stop paying your debt management company if this happens . * List all charges; whether they are set up charges or monthly management charges and compare them all, those that charge a large amount need to be avoided For example a debt consolidation company cannot charge in excess of $20 in California so any that charge more than that will generally be on the make . .Finally, why not consider approaching your creditors yourself and attempt to negotiate a better deal with reduced payments, you will avoid being scammed and you will know exactly what is happening with your finances and when; also the monthly fees can go towards paying off your debt instead of lining the pockets of somebody else . .Do not pay a scamming credit card debt consolidation management company to ruin your credit history, if you do feel it necessary to use someone to help you sort out your debt make sure they are a reputable business .
Source: www.rsstnx.com

Swimming In Bills? A Debt Consolidation Loan May Be The Answer
Every day, individuals are faced with mounting debt that is gradually getting out of control. Once credit cards reach their limits, payments are late or interest skyrockets, it literally becomes a battle of sink or swim in the debt pool. Consumers often turn toward a debt consolidation loan if their current debt can be combined into a smaller monthly payment. The most popular reason for a debt consolidation loan is to get rid of high interest credit cards. It is a well known fact that credit cards carry a much higher interest rate than secured loans, including home and auto. By paying only the minimum payment, it will typically take 15 to 30 years to pay off most credit card debts. The reason is because the majority of each month’s minimum payment is swallowed up by interest with very little, if any, money going toward the actual balance. By requesting a debt consolidation loan, many consumers qualify for a much lower interest rate and smaller monthly payments. As the years progress, this reduction can result in a substantial savings while helping the customer to save money every month. The process by which an individual applies for a debt consolidation loan is very similar to any other type of loan. A typical application will ask for the applicant’s name, address, telephone, social security number and employment information. In most cases, the potential lender will request a copy of tax returns for the previous two years, current pay stubs and/or employment verification. In certain instances where the applicant has poor credit, the lender may require a co-signer or collateral before approving the loan. With the continued growth of the internet, there is no shortage on potential lenders. A debt consolidation loan may be requested at a local bank or credit union, but may also be sought online. With such a broad range of options, consumers are better equipped to shop around for the most competitive interest rates and loan options. In many cases, an account holder will have success with his/her own bank as they have an established history with the organization. In other instances, a competing bank may be more willing to approve a debt consolidation loan in hopes of earning the applicant’s future business. For those who opt to seek a debt consolidation loan online, consumers are urged to proceed cautiously before providing their social security number on any application unless they are certain the lender is legitimate. One way to do that is to check out the company’s history with the local Better Business Bureau. A debt consolidation loan is, in many cases, a way for individuals to regain control over their financial life and save some extra cash in the process. If you want to find out more about <a href="http://www.fast-debt-consolidation-loans.info">debt consolidation loans</a>, visit our website at http://fast-debt-consolidation-loans.info . It contains tons of free debt consolidation articles, resources and tips.
Source: www.ArticlePros.com

2 Main Reasons Why You Should Consider Credit Card Consolidation
Credit card consolidation will undoubtedly help if you have many cards and are starting to lose control of both your repayment schedules and the amount you need to pay to each card provider Not only can they make your debt way more manageable they can literally save you thousands in interest payments . .You may well have heard of credit card consolidation before but have never really checked it out fully In fact, it would have been very difficult not to have heard something about it as this type of financial product is advertised with great frequency on all media formats; TV, radio, magazines and newspapers to name just a few; they are all singing loudly about it On the internet alone there must be thousands of companies that either offer advice or services all targeting this type of product . .What is credit card consolidation? . .Credit card consolidation is the process whereby all your credit card debt is rounded up and either placed onto a single or maybe a couple of cards or alternatively a credit card consolidation loan is used to eliminate all your debt . .The first method mentioned is that of moving all your higher interest credit card balances onto a lower interest card and as a result you will save a lot of money on interest There are many card providers that have great incentives such as 0 percent interest on balance transfers for a fixed period of time but whatever deal you look at you must always weigh up the cost of this exercise and practice extreme caution as you may end up in a worse situation than you were in before . .Many credit card providers have set fees for balance transfers that will make any lower interest gained null and void as the savings that would have been made are eating into by the charges incurred . .Be wary of 0 percent interest deals, they are a fantastic tool and may seem great at first glance but you will need to check what the interest rate will revert to once the introductory offer is over some of them are quite high . .A much better way to save money on your card debt is to use a credit card consolidation loan Using a loan to consolidate will greatly reduce the amount of interest you pay and possibly reduce your monthly repayment . .Where a consolidation loan differs from straight forward card ’shifting’ is that your repayments will be amortized Amortization is the process whereby your monthly payments are divided between the outstanding balance (the ‘principal’ in banking terminology) and the calculated interest . .This means that your total debt reduces each time you make a payment unlike with credit cards where a minimum payment covers primarily the interest and only a tiny percentage of this payment goes towards paying off the outstanding balance, leaving you very frustrated as your balance never comes down . .So, there you have two options to consolidate your credit cards; the balance transfer and the consolidation loan method but whichever you chose to use the main reasons for doing so are the same: . . 1 To reduce the amount you pay either monthly or in the long term through reduced interest rates, therefore saving you money; and . 2 To make your card debt much more manageable therefore safeguarding against the possibility of any unintentionally missed payments that would unfortunately have a negative effect on your credit score ..
Source: www.rsstnx.com