Consumer Debt Line - Consolidation & Settlement

When your monthly bills become too much for you to handle, it makes sense to use debt consolidation or debt settlement for solving debt and credit problems.
These services have pre-arranged debt repayment plans with most credit card and collection companies.

The Game:
Consolidation is the process of obtaining one new loan to pay off other consumer loans and credit cards in full. Debt Settlement is the process by which a credit card company agrees to accept a payment from the consumer which is a fraction of the total amount owed. The amount negotiated is considered a settlement.

The Rules:
•	To qualify, on the average, your dept amount must be over $5,000. But shop around. There are some debt-management companies that will take clients with debts starting at $2,500.
•	To consider debt settlement, the consumer must have an outstanding debt of $10,000 or more to apply.
•	A pre-requisite of any debt consolidation repayment plan is that you have to cancel all credit cards that you include in the plan.
•	Generally there is an initial charge prior to your first payment in the program and a monthly administration fee.

Strategy and Solutions:
•	Credit companies will opt to get what you originally owed or even a portion of your original debt, rather than forcing you into bankruptcy. If you go bankrupt they may get nothing, or they may get less than what you could give them if you worked out a debt settlement agreement.
•	Through debt settlement you may be able to reduce your current debt by as much as 75% while shaving years off your balances.
•	By participating in a debt consolidation repayment plan, you may notice a reduction of those harassing phone calls and letters from creditors as long as you make the new, lower monthly payments.
•	A debt consolidation company that is above board will offer a free estimate, after reviewing your information and documentation. They will review your bills, debts and financial position; assess everything, including your costs, before quoting their fees and other charges. You can then decide what process is best for you.

If your debts are too much for you to handle, you may want to look into a debt management program that can save you hundreds of dollars in interest and monthly payments. Click here for a FREE debt analysis to see how much you can save.