The Truth About Consumer Debt Consolidation
Consumer debt consolidation has a sordid reputation and I would place blame on the industry if I could, but the truth is that consumers don't understand the process and by not educating themselves, get into all sorts of problems.
My goal is to help sort out the mystique and the magic and the lies and the reality of debt and what you can really do to get ahead.
There are several types of opportunities for debt solutions.
It doesn't matter if you are in the toilet with debt, there is a way out.
I have to preface all of my remarks and advice by telling you that I have been where you are.
My credit scores have been in the mid 800's and they have been in the low fives.
Am I a slacker? Am I irresponsible? Nah, not really.
I am a business man who invests and sometimes gets caught short.
Like many of you, I have attached my net worth to credit and I have lived by the theory that a credit score defines a man, but this is not true.
A credit score is a prediction of what you will do, but more about that later.
Right now, we are discussing debt and what you can do to settle it.
Consumer debt consolidation is where you add all of your debt into one lump sum.
Add the credit cards up and maybe some medical bills and the total is what you present to a debt consolidation company.
It doesn't matter if you are 30 or 60 or 90 days late on these bills.
What matters is who you employ to negotiate for you.
Debt consolidation companies have the power of many consumers at bay.
They are able to lump all the past due accounts into one lump sum and make a great deal with the creditors.
If your total balance is $9,000 do you believe the credit card companies would really be as excited as someone who came to them with $250,000 worth of outstanding debt? Of course not.
More money means the credit card companies have less work to do.
It also means they are only dealing with one person instead of thirty.
Would the person with the larger sum be able to cut a better deal? The answer is obvious.
This is why consumer debt consolidation companies are successful.
You have other choices though.
You can cut a deal with your credit card company yourself.
This is a little known fact that many people do not look into.
It;s true, but you can not do this unless you are behind in payments.
And you have to proceed before the account is charged off.
If you wait until the account is sent to collection, or worse yet, sold, you will have very little chance of saving your credit and making a deal.
Another option, and one many people are affording themselves is bankruptcy.
Unless the situation is really bad, i would never consider this as an option.
The lasting effects on your credit file will hurt you for years to come.
Try to settle.
Try to make a deal and try to preserve your credit if you can.
My goal is to help sort out the mystique and the magic and the lies and the reality of debt and what you can really do to get ahead.
There are several types of opportunities for debt solutions.
It doesn't matter if you are in the toilet with debt, there is a way out.
I have to preface all of my remarks and advice by telling you that I have been where you are.
My credit scores have been in the mid 800's and they have been in the low fives.
Am I a slacker? Am I irresponsible? Nah, not really.
I am a business man who invests and sometimes gets caught short.
Like many of you, I have attached my net worth to credit and I have lived by the theory that a credit score defines a man, but this is not true.
A credit score is a prediction of what you will do, but more about that later.
Right now, we are discussing debt and what you can do to settle it.
Consumer debt consolidation is where you add all of your debt into one lump sum.
Add the credit cards up and maybe some medical bills and the total is what you present to a debt consolidation company.
It doesn't matter if you are 30 or 60 or 90 days late on these bills.
What matters is who you employ to negotiate for you.
Debt consolidation companies have the power of many consumers at bay.
They are able to lump all the past due accounts into one lump sum and make a great deal with the creditors.
If your total balance is $9,000 do you believe the credit card companies would really be as excited as someone who came to them with $250,000 worth of outstanding debt? Of course not.
More money means the credit card companies have less work to do.
It also means they are only dealing with one person instead of thirty.
Would the person with the larger sum be able to cut a better deal? The answer is obvious.
This is why consumer debt consolidation companies are successful.
You have other choices though.
You can cut a deal with your credit card company yourself.
This is a little known fact that many people do not look into.
It;s true, but you can not do this unless you are behind in payments.
And you have to proceed before the account is charged off.
If you wait until the account is sent to collection, or worse yet, sold, you will have very little chance of saving your credit and making a deal.
Another option, and one many people are affording themselves is bankruptcy.
Unless the situation is really bad, i would never consider this as an option.
The lasting effects on your credit file will hurt you for years to come.
Try to settle.
Try to make a deal and try to preserve your credit if you can.
