Debt consolidation refinancing used to be the way it was done when people had debt.
Many times they went to the bank and refinanced their home and the debts were all rolled into one monthly payment that was secured with their home as collateral.
In case you haven't watched the news lately, I will tell you that lenders are in no hurry to give out mortgages and they are even less likely to give out second mortgages for the use of debt consolidation purposes.
But this does not mean that you do not have an alternative for getting out of debt.
These options are even better because they do not put your home in jeopardy.
Credit counseling is one of the best ways of starting your debt relief search.
These companies are nonprofit and they have a wealth of resources.
If you need a debt management plan, they can help you with that.
Many of them also do debt settlement, bankruptcy and mortgage modification referrals.
Debt counseling is a consolidation program that does not require a loan.
Most any unsecured debt can be placed with these companies.
Federal debt is one exception (student loans and taxes).
You will be quoted a monthly payment that should be about equal to 2% of your total debt.
Your interest rates will be reduced and your fees eliminated.
You will make one payment each month to the credit counseling company and they will disburse the payment to the respective lenders.
Enrolling in a debt management program and following it can have you debt free in about five years.
There are programs that are quicker, but they will ruin your credit.
If you are able to make the quoted payment, it is better to get into a program that takes longer that keeps your credit intact.
It generally takes a few years to rebuild your credit and with the current economy lenders are gun shy when it comes to people that have a low credit score.
You can begin the debt relief process today.
Many times they went to the bank and refinanced their home and the debts were all rolled into one monthly payment that was secured with their home as collateral.
In case you haven't watched the news lately, I will tell you that lenders are in no hurry to give out mortgages and they are even less likely to give out second mortgages for the use of debt consolidation purposes.
But this does not mean that you do not have an alternative for getting out of debt.
These options are even better because they do not put your home in jeopardy.
Credit counseling is one of the best ways of starting your debt relief search.
These companies are nonprofit and they have a wealth of resources.
If you need a debt management plan, they can help you with that.
Many of them also do debt settlement, bankruptcy and mortgage modification referrals.
Debt counseling is a consolidation program that does not require a loan.
Most any unsecured debt can be placed with these companies.
Federal debt is one exception (student loans and taxes).
You will be quoted a monthly payment that should be about equal to 2% of your total debt.
Your interest rates will be reduced and your fees eliminated.
You will make one payment each month to the credit counseling company and they will disburse the payment to the respective lenders.
Enrolling in a debt management program and following it can have you debt free in about five years.
There are programs that are quicker, but they will ruin your credit.
If you are able to make the quoted payment, it is better to get into a program that takes longer that keeps your credit intact.
It generally takes a few years to rebuild your credit and with the current economy lenders are gun shy when it comes to people that have a low credit score.
You can begin the debt relief process today.