Free Online Debt Consolidation Loan - Are Debt Consolidation Loans a Viable Option For Debt Relief?

How Does Debt Consolidation Work?

Debt Consolidation said another way is a process for reducing the face amount due on your outstanding credit cards. Let’s say for example that you have a total credit card debt of $20,000 and you are having difficulty making the minimum monthly payments, then you are a good candidate for credit card debt consolidation. It’s an ideal option for those with too much credit card debt or medical debt and looking for a way out that doesn’t include bankruptcy.

Debts that can be addressed this way are what are called “unsecured debts” like credit card debt, department store charge cards and medical bill consolidation. It doesn’t work for debt that is attached to specific purchases like the mortgage on your home or the car loan on your automobile. Those charges are considered “secure” because they are backed up by the specific item the loan is for. If the problem is your mortgage is out of control this can be addressed through a loan modification or even bankruptcy.

The debt consolidation loan process starts by making contact with the credit card debt consolidation company who issued the cards you want to settle. You can try and do this on your own but usually its best done by an intermediary. You can find one right here who is an expert and very familiar with the process. Secondly you have to decide how much of the debt you are in a position to pay off. Depending on that amount and how much time it takes you to put that amount of money together, the negotiations will follow. You are in effect making what’s known as an “offer to settle”. In today’s uncertain economic environment, most credit cards are willing to make a settlement and often up to 50%.

Can I Handle My Own Debt Consolidation?

The short answer to this question is yes you can but you probably don’t want to. Its certainly possible for an individual to handle their own settlement but its very difficult. federal debt consolidation Just for starters, most credit companies don’t take individuals too very seriously. Their long term history with individuals making lasting settlements is not very good. You’ll find they are much more responsive to a professional intermediary.

Setting aside that they won’t take you too seriously; another critical issue is are you properly prepared? The representatives of the card companies are professionals and they do this everyday for a living. Unless you are also a professional in this area, then you aren’t on a level playing field. In fact it’s like a high school football team on the field with an NFL team. It’s not a fair match up.

Negotiations with the card companies take time and a third party will handle everything. Life has enough stress without adding this on top of it all.