What has the burden of debt done to your life? Are you afraid to answer the phone in case it is a collector? Have you given up all of life’s luxuries to be able to pay what you owe? Today is the day you can breathe a sigh of relief as you read all about debt consolidation.
If you think you have a debt consolation company that you want to work with, make sure you look them up on the Better Business Bureau. You should be able to see consumer reviews, which will help you determine if you really want to do business with them or not. Even doing a simple search online for the company’s name may bring up some helpful information.
Just because a debt consolidation company claims to be a nonprofit does not mean that they are reputable or won’t charge you excessively. Even scammers will use this term to try to suck you into their web with loan commitments and interest rates that are way too high. Go with a group that was personally recommended to you or look at the BBB.
Find out whether a debt consolidation company is a “home equity loan” provider in disguise. Some debt consolidation companies really just want you to take out a home equity loan. Don’t let this be you. After all, your home is the most important thing you have. If you find out a company wants you to take out a loan on your home, move on.
With the current low home mortgage interest rates, you may be able to refinance your home and take out some of the equity. Be careful to avoid borrowing as much as possible on your new mortgage. If home values should drop even more, you may end up owning a home that is less than the amount you owe on it.
You may be able to consolidate your debts by borrowing money from an acquaintance. This is not a good idea if you can’t pay them back. This is a way to actually pay down debt, but it really ought to be a last resort. Only go down this road if you know how and when you can pay them back.
Now that you understand debt consolidation better, you can start to use it to help yourself. Once you do, those creditors will stop calling. You can have a cell phone, or car or go to the movies again. You will have so much freedom once your debts are finally paid off!