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Consumer counseling credit card consolidating debt

Get Financial Help Now Debt settlement is negotiating with creditors to settle a debt for less than what is owed.This method is most often used to settle a substantial debt with a single creditor, but can be used to deal with multiple creditors.

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This is typically done by consumers trying to keep up with bills for multiple credit cards and other unsecured debts.Credit counselors also can provide solutions that you can take with you after completing the program.The downside on DMPs is that they usually take 3–5 years to eliminate the debt and some people aren’t patient enough to stick with the program that long.The average American family has 3.7 credit cards and owes $15,762 in credit card debt.Throw in bills for rent, cable, cell phone, utilities and on and on, and that’s a lot of accounting to keep up with every month.The interest rates vary, but usually are fixed at rates less than what is paid on credit cards.

However, most personal loans include an origination fee, some include a pre-payment penalty, and others require collateral (e.g. Home equity lines of credit also carry relatively low interest rates, but your home serves as collateral and could be lost if you fail to make payments.

With so many negatives attached to the outcome, many consumers wonder: Does debt settlement really work?

For people who feel helpless with their financial situation and don’t want to declare bankruptcy, debt settlement could be the short-term answer.

The pros for debt consolidation are obvious: You are simplifying the process of paying your bills.

You make one payment to one lender with one deadline every month in place of multiple payments to multiple creditors with multiple deadlines.

Debt settlement and debt consolidation are two forms of financial help for people struggling with more debt than they can repay.