August 14, 2009
-
CC Debt Settlement Advice amid the Myer in TX, Pt.2
On to further options:Low-interest Consolidation Loans: If you're fortunate enough to still have a good credit card rating or an income high enough to offset new debt you may be able to consolidate all your high-interest credit card debt into a better account. If you're responsible and disciplined and own a home, you may want to consider a home equity loan. One sober warning here is the caveat of exchanging unsecured debt for secured debt. They can't take your home away for unsecured debt (like a credit card) but with secured debt, a lender may be able to deprive you of essentials. With adequate discipline, however, you will probably find better terms, like lower interest rates with a home equity. Just make sure it's not going to be long-term. Things can change over time and default of a secured debt will usually hurt you worse. As the advisors at "Debt Settlement America" state: "If you can't afford the debt you currently have, you are a bad candidate to acquire new debt. "
Seek Wise Council: It does no harm to enlist the services of a Consumer Credit Counseling Service for credit card debt provided that they don't run a "cleaning service" on the side. There are an abundance of reputable non-profit agencies on-line to pick from who won't "take you to the cleaners". There are also a few reputable for-fee agencies on-line to pick from. Unfortunately though, the Internet is teeming with scams. Make sure you investigate who you're dealing with. Blow off unrealistic credit card settlement promos before wasting any time. Some of things to expect of your reputable councilors are:
Ø They should help you consolidate your bills into one monthly payment.
Ø If your current credit card interest rates are more than 20%, they should provide you with lower interest rates.
Ø You will be placed on an austere budget. If these people are worth their salt, they will really care that you escape debt. Don't settle for less.
Ø If your credit rating is already bad, your terms will be less favorable (but more favorable than the alternative). You may find yourself likened to a chapter 13 but, without the extended consequences.