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Using A Loan For Debt Management And Counselling

One option that many people take when they find themselves in debt that they can not rid themselves of alone, when the bills are piling up and can’t be paid off, is the option of a debt consolidation loan. Individuals who select this method have often rejected other methods such as debt counselling. Debt counselling requires a lot of face to face interaction, and some people do not feel comfortable in this situation. In addition, consumer debt counseling entails an application process that involves creditors, so the process could result in a bad credit score. Individual debtors who do not want to risk this are very curious about applying for debt consolidation loans online.

Remember that the Internet is a vast place, full of opportunities and pitfalls. There are hundreds of companies offering consolidation loans online, and it is up to individual debtors to do some careful research to determine which company offers that best solution in their current situation. The company the individual chooses will need to know what they are doing and know how to do it right, so indivduals should not jump at the first offer they see in their search. First, look for a company that has a good reputation. Do not rely on personal accounts that you read on their website; any company can hire people to say that they are great. In fact, some companies can just write their own testimonials. Instead, look online for a consumer website that is not funded by any particular company and where you can find information from actual customers. Many of these sites will have ratings systems that can help determine the worth of the company to a prospective client. A second thing to look for in your research is if the company has been accredited by a third party organization. Accreditation offers an extra measure of confidence and security.

When individuals have found the company that best suits their needs, they must keep in mind that disclosure is going to be necessary. There will be a lot of financial information given over to the company the individual chooses, so the chosen company needs to be one that the debtor has trust and confidence in. When filling out the forms for the loan online, make sure that the lock symbol which indicates security measures is on. Make sure to ask a lot of questions about the security measures and services the company uses; if there are any doubts as to the safety of indivdual information, do not use the company.

Erik Slarkowski
http://www.articlesbase.com/advice-articles/using-a-loan-for-debt-management-and-counselling-69645.html


8 Comments

  1. taralynne07

    What is the best way to get out of debt? Consoldation loan, counseling, etc.?my husband and I are about $15,000 in credit card debt. We are current on our credit card bills but we are only making minimum payments and seem to be getting nowhere. I thought of a debt consolidation loan but here the interest rates are high. Anyone know anything about a Debt Management Program like Care One? I think you pay them and then they pay your bills but how is this any different than what I am doing? Can someone give me advice on what to do? It is so depressing. We try not to use the cards. which is difficult at times when money is tight. HELP!

  2. robert w

    visit dave ramsey.com to learn ur hard lessons from others harder lessons.
    cheaper easier faster less pain.References : ex street bum , biz owner now

  3. groovy_girl_30

    As someone who works in a bankruptcy firm, let me tell you that those credit consolidation places RARELY work. I don’t know how many people I have seen filing for bankruptcy that have tried them. They are expensive, and honestly, you’d be no better off than trying to continue to pay them yourself. Call each credit card company and ask for a lower interest rate. They may say no, but it doesn’t hurt to ask. Then, cut the cards up, but continue to pay what you can each month to maintain a good credit record. Another option is bankruptcy. When used as designed, bankruptcy helps people get a fresh start!References : Bankruptcy paralegal for 5 years.

  4. cvawt

    Your best bet is to do it yourself without the fees that a debt management program charges.

    -Come up with a budget that frees up more cash to pay more than the minimum on your highest rate card.
    -Find ways to save money each month to put towards that debt (use coupons, eat out less, less driving to save gas, etc).
    -Find ways to be more frugal (spend less on gifts, make meal plans that use common ingredients, have a garage sale, spend less on new clothes)
    -Call each of the credit cards and ask for a lower rate (it may work, you never know).
    -Improve you FICO scores to get better rates by limiting credit inquiries, paying bills on time, lower utilization ratios, etc.
    -You will be surprised how the balances start moving downwards if you are diligent and work hard to put extra cash towards the debt.
    -When you get extra cash use it to pay off debt (tax rebate, tax refunds, bonuses, gifts, etc.)
    -Once you pay off that highest rate card, put that monthly amount to the next card and watch the balances and interest paid drop (called the snowball effect).

    Oh and good luck! Lots of people have been where you are and come out the other side debt-free and happy!!! Just keep working hard.References : Finance manager

  5. Walking on Sunshine

    A Credit Counseling service like Consumer Credit Counseling is a good thing because they will renegotiate your debt but will help you avoid future debt and even help you start saving. A debt consolidation with a high interest is no bargain. Which ever you choose confirm the reputation of the agency with the BBB and review their reputation with your local Chamber of Commerce. With all the financial problems the country as a whole are suffering scam operations are popping up fast and you could be left in a worse debt than you started in. Obviously the very first step is to talk to the credit card companies and see about lowering your interest rate or using one card to pay off another at zero interest then paying the double payment to the new debt to reduce it faster. There are many books on the subject as well. Do your research carefully. Good Luck!References :

  6. Nancy K

    Try http://DebtAnswersNow.com

    They match you up with debt specialists that offer free debt relief advice. I used them a few months ago with great results.References :

  7. Gav S

    Check this out just enter your zip code and amount of debt and it will basically approve you http://kvors.com/click/?s=31492&c=79723 check it outReferences :

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