When a person gets so far into credit card debt that they have no clue what they should do, they often begin to panic. One thing many people do in an attempt to make the situation better is contact a credit card debt consolidation service. Before you do that, however, it would be wise to be one of the few people who actually understands how such services operate.
Since credit card debt consolidation services effectively control your finances for you while you avail yourself of their assistance, it is a very good idea to understand them better before trusting them with your money. The truth is that, even if you currently find yourself buried deep below debt, what you do right now is important and will effect the amount of time you will spend fixing your financial problems.
Even though they offer assistance to individuals who want to get out of debt, credit card debt consolidation services are businesses that are interested in making money for themselves before they are interested in helping you. The monthly rate they arrange for you to pay off your bills with includes a fee that they charge you as well.
They exist because most people believe that they cannot contact the credit card companies themselves and negotiate a resolution. The credit card debt consolidation services companies call your credit card companies and find ways to negotiate the lowest possible payment for your account. This sounds great but remember that this may not always be the best deal for you but that is something you will never know because you did not do the talking yourself.
After the company negotiates with all of your creditors they will then inform you which cards have been canceled and then give you a monthly payment you will pay them to take care of your bills. It sounds so very easy. It is so easy you could have done it yourself and saved the credit card debt consolidation services monthly fee.
The Bill at the End
The credit car debt consolidation company that makes all the arrangements for your agreement with the credit card companies will also pay those companies for you; you just have to send them the money on a monthly basis. In addition to causing serious damage to your credit rating, using one of these services will also eliminate a large percentage of whatever amount of money you are saving. For example, if you save $200 each month because of consolidating your debts but the service charges $100 each month, you have gained very little.
That is all they do and it is something you can do yourself but with your best interest in mind and not someone else's.
About the Author:
Is credit counseling the best way to get out of debt? Possibly, but there's no single best way for everyone. Visit the Debt Smackdown website at http://www.debtsmackdown.com for more helpful tips & advice about getting rid of your debt for good..
Adobe users get help with Google Site Search
Adobe users get help with Google Site Search
0 comments:
Post a Comment