Discover which debt relief companies will provide you with honest and professional debt solutions. Here you can research all your options, ask questions, and decide which type of debt solution is right for you!What Is a Debt Consolidation Program?
Debt Consolidation is a term used in TV commercials from several different industries which has caused lots of consumer confusion. Everywhere you turn there seems to be a company offering you a debt consolidation program. Does it mean mortgage refinancing? Is it a way to reduce your credit card fees? Is it the same as credit counseling?
Yes. Yes. And Yes depending on who you are listening to.
The point is that debt consolidation allows you to combine several payments into one with lower overall fees and a lower interest rate. Consolidating your debts into one lower monthly payment can be done in several ways.
1. Refinance your mortgage and use the increased value of your home (if any) to pay off your credit card and other unsecured debts
2. If you don’t have a home with equity in it, then you can consolidate your credit card bills using a debt management company. They will typically be able to lower your high interest rates and reduce or eliminate fees in order to reverse the mounting debt while you get back on your financial feet.
How you do it really depends on your personal situation. The primary question is do you own a home that is worth more than you owe on your mortgage. If yes, then both options above are available to you. If not, then debt management is the best way to consolidate your debts unless your financial situation is severe enough to warrant debt settlement.
