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An article on Debt Consolidation and related topics

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Credit card debt consolidation – reduce or eliminate high interest bills

By: Ron Mark

Debt consolidation loans are one of the most common solutions people think of upon falling victim to financial problems. People who choose to go this route often find themselves in somewhat deeper financial trouble than they were in to start with. What they may be in fact doing is exchanging unsecured debt for secured debt that they still need to pay interest on.

An additional downside to debt consolidation loans is that the newly obtained “consolidated” debt the now secured debt, means that it puts assets in an accessible position for creditors to go after, in this case shifting leverage to the creditor. Unlike most consumer credit counceling or debt consolidation programs that may only reduce credit card interest rates, Pacific Debt will reduce the amount that you owe dramatically.

Another alternative is to enrol with a CCC – a Consumer Credit Counseling company. These companies are often founded by the creditors themselves so they tend to reduce interest rates by requiring higher payments, no reduction of principle, naturally. The usual practice is to for the CCCs to be paid via commission, a commission which depends on how much of the creditor's debt the CCC can recover. The experienced debt negotiators at pacificdebt.com work purely for the debtor, not the credit card companies, collection agencies or any other creditor.

What hundreds of thousands of people across the country do is just continue to struggly silently with their debt load.. Creditors much prefer that people make only the minimum payment each month for the rest of their life. Why would they only want to receive the minimum payment? Paying the minimum payment each and every month as requested by the creditors -on average 85% of your payments go to interest alone and it will take about 25 years to pay off the debt in full!

Filing for personal bankruptcy is harder than it used to be. Even if able to file successfully the chances are that the debt will still have to be paid off in full over some period of time – so when combined with the added stigma and embarrassments of the bankruptcy proceeding that follow you for many years it makes bankruptcy a pretty unattractive option that has negative effects with regards to credit reports, renter's applications, interest rates, job applications etc.

Using Pacific Debt to negotiate debt settlements can reduce the actual amount that is owed in dramatic fashion. Pacificdebt.com takes an aggressive approach to reducing the amount of debt as well as reducing the interest on the remaining debt. A typical time of completion of the debt negotiation program is 2-4 years but some finish in considerably under two years.

Article Source: http://ezine-articles-planet.com

Credit card debt consolidation is not necessarily the most effective way to escaping financial problems. You should consult a debt negotiator who works purely for you to reduce the amount that you owe as well as reducing or eliminating interest rates.

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