Government approved credit consolidating programs
Their counselors can help you develop a plan to pay the balances in a single monthly payment, and in some cases, reduce interest and eliminate extra fees.Their debt assistance programs are low-cost and in the case of severe financial hardships, the fees are often waived.Pay attention here, because these crafty companies will stick it to you if you’re not careful.We’ve already covered consolidation: It’s a type of loan that rolls several unsecured debts into one single bill. Debt settlement means you hire a company to negotiate a lump-sum payment with your creditors for less than what you owe.But let’s be honest: Your interest rate isn’t the main problem. This specifically applies to consolidating debt through credit card balance transfers.The enticingly low interest rate is usually an introductory promotion and applies for a certain period of time only. Be on guard for “special” low-interest deals before or after the holidays.Debt settlement is a scam, and any debt relief company that charges you before they actually settle or reduce your debt is in violation of the Federal Trade Commission. When you consolidate your debts or work with a debt settlement company, you’ll only treat the symptoms of your money problems and never get to the core of why you have issues in the first place.
Minimum monthly payments aren’t doing the trick to help nix your debt, and you’re flippin’ scared.In almost every case, you’ll have lower payments because the term of your loan is prolonged. You are only restructuring your debt, not eliminating it.You don’t need debt rearrangement—you need debt reformation.So basically, your debt would go from ,000 to ,000–60,000.If that’s not bad enough, fraudulent debt settlement companies often tell customers to stop making payments on their debts and instead pay the company.