What is Debt Consolidation
Credit Card Debt Consolidation
Medical Debt Consolidation
7 Tips About Debt Consolidation
Common Debt Consolidation Mistakes
Debt Consolidation
Risks of Debt Consolidation, Types of Debt Consolidation Loans, Pros & Cons
Balance Transfer or Debt Consolidation?
Debt/Credit Calculators
Discussion Forum
Credit Counseling and You
Non-Profit Credit Counseling
Consequences of Credit Card Default
Effects of Credit Card Default
9 Common Credit Card Mistakes
Eliminate Credit Card Debt in 90 Days
Credit Card Debt
10 Expenses You Can Not Afford If You Have Credit Card Debt
Truth About Credit Card Companies
Should I Tear Apart My $300 Limit Credit Card - The Worst Credit Card Ever?
Disputing Credit Card Debt
401k vs Credit Cards: Where to invest?
Debt Settlement Letters
Sample Letters
Write a Powerful Debt Validation Letter
Reputable Debt Settlement Agreement
Debt Settlement vs. Debt Consolidation
Dangers of Debt Settlement
Avoid Debt Settlement Pitfalls
Debt Relief Tools/Debt Management Programs
Debt Settlement FAQs
Is Debt Settlement Money Taxable?
Reduce Medical Debt
Free Bill Consolidation: Does it exist?
Budgeting to Stay Debt Free
10 Debt Reduction Mistakes
Should I Pay Off my Debt or Save Up for a Down Payment on a House?
Bill Consolidation
Three Secrets to Lowering Your Debt
Tips To Lower Your Bills
Government Debt Help
Debt Help During Recession
Debt Relief During a Recession
What Debt Relief Means
Pay Off $50,000 Debt
Worried About Bills?
Money & Debt Videos
Report Illegal Collection Activity
Managing Medical Bills
Medical Debt & Bankruptcy
The Facts on Debt
Debt Quotations
Drowning In Debt?
Who to pay first?
Managing Debt FAQs
Medical Debt Solution
12 Hot Tips for Eliminating Debt
7 Debt Elimination Mistakes
2 Ways to Achieve Debt Elimination - Debt Snowball Elimination Method
Payday Loan Consolidation
Payday Loan Debt Consolidation
Payday Loan Relief
Default on a Payday Loan?
Payday Loans | Consumer Information
Problems with Payday Loan Stores
Bad Credit Loan Relief
How Payday Loans Work
What is Loan Consolidation?
How to get a $50,000 loan
Get an $80,000 Loan
$100,000 Loan for Debt Repayment
Veteran's Home Loan Refinance Options
Government Loans vs. Private Loans
Finding a Government Loan
Student Loan Consequences
Reputable Debt Consolidation Companies
Debt Consolidation Company Reviews
Reputable Debt Management Companies
List of Debt Companies in USA
Debt Companies By City
How Debt Affects Your Credit
What is shown on my credit report?
Improve Your Credit Score
Correct Credit Report Errors
Can Debt Settlement Ruin Credit?
Can Debt Negotiation Ruin Your Credit?
401k Limits
Safe CD Rates
Financial Planning
Banks versus Credit Unions
AMEX Horror Stories
IRS Tips For Audit
Choosing a Tax Preparer
American's not planning for long term care
Understanding Usury Laws
Unemployed During A Recession
FREE Government Grants
Where does money really come from?
About Us
Contact Us
6 Payday Loan Debts Owe
Borrow a Loan to Pay Off Payday Loan?
My husband was out of his job and Payday Loans were rolling over

Debt Consolidation Facts

1. If you spend more than 50% of your credit limit every month, this indicates to the Credit Bureau that you do NOT have enough cash on hand to meet your monthly expenses. This will identify you as a high credit risk and will actually reduce your credit score by 60 - 70 points overnight (Fair Isaac).

2. If you miss 1 or 2 payments on your credit card debt, the issuing company will skyrocket your interest rate to a whopping 27% - 30%!

3. Out of a random sample of 3 million American consumers (included in Experian's National Score Index), 51% of them have at least 2 credit cards and 14% of them have 10 or more credit cards.

Struggling with a pile of unpaid debt

Maybe you started a business a few years ago and needed to use your credit cards to get it going. Maybe you bought a new house recently and maxed out your credit cards decorating it. Or maybe you’re just bad with money and haven’t been able to get a grip on your debt. Whatever the case may be, there are millions of Americans carrying around way more debt than they should. It can force them to make drastic lifestyle changes and stop living the way they want to live.

It can cause them to be stressed out all the time or frustrated with their financial situation. Worst of all, it can force many people to the brink of sanity and make them stop pursuing their dreams. If you’re one of these people, you don’t need to stop trying. Even if you’re carrying around as much as $100,000, there are ways to pay your debt down without declaring bankruptcy. You just need a little help. And help may be just a phone call away.

Why Americans suffer from debt

It’s not hard to understand why so many Americans are in debt today. As this video clip from 2007 reveals, this country has been struggling with debt for years now.

Video: A Nation in Debt - A Ticking Time Bomb

How to cure your problems with debt

Debt can be a scary thing. But it’s important for you to know that there are options if you wish to eliminate your debt. Whether you owe just a couple hundred dollars or $100,000, debt consolidation is a great way to get out of debt quickly. So, how does debt consolidation work? Well, first you’ll need to find a lender willing to help you with your specific situation. This lender will then essentially help you pay off any high-interest credit cards you have as well as other debt you owe to creditors. Then, the lender will work with you to set up a payment plan for your total debt.

debt repayment

Why debt settlement may be another good option

While debt consolidation is a great option for paying down your debt, it’s also just one option available to you. Debt settlement is another way to eliminate debt quickly and, in some cases, can actually be better than consolidation. If you have a sufficient amount of money in your bank account but can’t seem to get rid of your debt, debt settlement allows you to negotiate with your creditor. Many creditors want to make sure they make something off your debt. Therefore, they will accept a fraction of your debt in one lump sum and, in return, eliminate the rest of the debt. This way, they make money—and you lose your debt. On $100,000 worth of debt, they may be willing to accept as little as 20 to 25 percent. But you need to act quickly and stay in constant communication with your creditors in order to use this option. Fill out the form above to learn exactly how this option works and what it could do for you.

Using bankruptcy as a final option

Many people in debt feel that bankruptcy is their only option. In reality, it is an option—but it should only be used as a last resort. Bankruptcy can harm your credit report and credit score for up to a decade and disallow you from borrowing money in the future. Additionally, bankruptcy could force you to give back some of your physical possessions. It also does not put you in the clear necessarily. You could be forced to repay certain debts over the course of the next few years. So it could be worth exploring debt consolidation or debt settlement first.

Why bankruptcy doesn’t always burn you

Bankruptcy should only be used as a last resort. But it can offer many Americans a second chance when it is used properly.

Video: The Truth About Bankruptcy

Steering clear of debt in the future

Regardless of whether you choose debt consolidation, debt settlement or bankruptcy, remember this: Debt is something you’ll always be fighting against. Buying a house involves debt. Buying a car involves debt. Even buying a new outfit or just going out to eat can involve debt. Use the following tips to avoid repeating your mistakes once you’ve attacked your debt and gotten rid of it once and for all.

  1. Budget your money properly: Know how much money you make every month and how much you can spend on housing, food, clothing and entertainment. You need to account for everything and stop using credit to purchase items every month.
  2. Pay off debt as quickly as possible: If you do use credit, work on paying off your debt promptly. Don’t let it grow and become unmanageable.
  3. Look for one reliable credit card: Don’t apply for multiple cards and use every single one. Rather, find a card with a low interest rate that suits you.
  4. Rebuild your credit: Debt consolidation, debt settlement and especially bankruptcy can harm your credit score in varying degrees. Once you pay off your debt, continue to pay bills promptly every month to avoid harming your credit further.
  5. Learn from your past mistakes: Many people have a tendency to pay off debt and then repeat the moves that landed them in debt in the first place. Take a cue from the past and find out what forced you into debt in the first place. Then work hard to make sure it doesn’t happen again.