Tips on Debt Consolidation/ Debt management plans

Debt consolidation involves taking on new debt to pay off your existing debt immediately. When a debt consolidation program is put together in the right way, it can help you pay less money and get out of debt faster than you would have done otherwise. A big part of good debt consolidation is to make sure that you get yourself a much lower interest rate on your new debt than you had on all your other debts. Quick tips to debt consolidation -

1. Face to face: Free debt consolidation counselors' talk directly with you, helping find ways for you to pay off your debt while saving you money. Keeping this in mind you can find the right solution for your needs.

2. Pay later: Remember, while debt consolidation quotes may be free, the costs for these services often aren't mentioned until the cash is practically in hand. So one needs to be very careful while considering change in debt hands.

3. Use home equity:Consider debt consolidation by getting online as well as offline quotes for a Home Equity Line of Credit-which often features lower rates than other debts. Three top strategies for debt consolidation: consolidate to a single low-or-no-interest card, get a low-interest loan, or tap into home equity.

4. Read the fine print: The term "debt consolidation" may be used interchangeably by several companies offering very, very different types of services and end results. So it is recommended to choose carefully. Avoid collection calls, liens and lawsuits by consulting a professional debt reduction company; they can often eliminate debt for pennies on the dollar.

5. Check certifications: There are numerous mushrooming financial institutions touting debt relief without verified accreditations. To help ensure you're working with a reputable debt consolidation firm, search for one certified by the National Institute for Financial Counseling Education.

6. Proceed with caution: Debt consolidation loans encourage tendencies already leading to financial challenges. By taking on yet another creditor, you're adding fuel to the fire. Be very sure of your repayment strategies and capabilities before you take on this additional burden.

7. Last resort: Considering signing up for a debt consolidation program only after a certified credit counselor has spent time carefully reviewing your financial situation.

8. Research firms: Check out any company offering debt consolidation services with your local consumer protection agency and the Better Business Bureau in the company's location.

9. Get going: One primary key to consolidating debt is to have a clear plan of action for making payments and reducing monthly interest charges. Unless you're offered a compelling, lower interest rate for consolidating multiple credit cards, the savings might not justify the effort and hassle.

10. Online Quotes: For the fastest debt consolidation loans available, look to the Web. Online lenders are well knows for providing the fastest debt consolidation loans to people all over the United States. As long as you have all of your debt information ready to provide them, these lenders can take you from application to approval to disbursement in a matter of days. Some reputable debt-settlement firms (search several online) can often reduce your debt as much as 75% or more-without a credit checks.

Debt management plans

#1 Confront the problem Always take a good look at what you are dealing with. Have a clear idea of how much you owe and how much interest you are paying. These facts will help you to devise the plan of attack. Find ways to reduce down the spending and if possible stop using your credit card. Look for quick repayment and raise a little extra cash that can be used to spend down those bills.

#2 Transfer high-interest balances to lower-rate cards Try to deal and transfer your high-interest balances to lower-rate cards. But also keep in mind that if your credit history shambles; you will not qualify the deals. Before applying for these deals, also read the fine prints.

#3 Call your lenders You think that you are not getting all the benefits from the offers, try contact your lenders and ask for lower your rates. Though it will not drop to zero percent, it could very well drop considerable percent points. If you find that the customer service representative does not help you to lower your rate, ask to speak to the supervisor. Else simply threaten to transfer your balance to another credit card.

#4 Tackle the highest-interest card first Once you have covered all you could to lower your interest rate, the next step would be to figure out which debt to tackle first. It is preferable to pay off the debt with lowest balance first so that you can see fast results. It's a fine plan, but if you really want to pay off your debt quickly, focus on the debt with the highest interest rate and pay the minimum on the rest (advices experts).

#5 Beware mismanagement If your debt is spiraling out of control, you might seek benefit from the credit-counseling agency services. These nonprofit organizations help consumers pay off overwhelming debts by lowering their interest rates or placing them in so-called Debt Management Plans (DMPs). These plans help the consumers to send check to the agency, which then disburses it to creditors. But one should also be careful when selecting the firm. Though many credit counselors remain dedicated to helping consumers, most have own profit in mind.