January 22, 2010
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Can You Afford Debt Settlement?, Pt.3
Consider debt consolidation and debt relief.According to Linda Pichler of the Consumer Credit Counseling agency, the average American household has nearly $8,000 in credit card debt. If you spent more during the holiday shopping season and find yourself in this category, start now to plan for next year. Calculate how much you want to spend next year and begin setting aside a portion of that each month. By doing so, you won't even need to use our credit cards for the next holiday shopping season. You can also prepare for those expenditures by selecting one or two low interest rate credit cards, cancel the rest, and only use one of the low interest rate cards.
Debt consolidation is another option that allows you to pay off all or some of your debt and make one monthly installment. Most debt consolidation loans use the equity in your home to secure a second mortgage. With a debt consolidation loan, your creditor uses the proceeds from the loan to pay off your credit cards and other debt up to the amount of approved credit. A debt consolidation loan can be a very beneficial, however, it requires you do your homework to assure you have chosen an honest and reputable company. Conduct your search by following these steps:
• Check out your local credit union. Credit unions have become very popular because they offer variety of products and very competitive credit card programs.
• Talk to your regular banking organization. Banks are more willing to extend credit to regular customers in good standing.
• Check with your local Better Business Bureau and ask to see statistics on complaints that might have been filed against the lending institution.
• Check the National Foundation Credit Counseling for the Lending website for recommendations on credit counseling and debt management.
• Be cautious when searching the internet. If the site asks you for your credit card information or social security number, stay away from it. Americans have become the target of numerous online scams.
• If you are sure you need debt settlement assistance, look for a debt relief network. These organizations must prove a successful track record of negotiating and eliminating consumer's debt. Furthermore, they must also have ethical standards education and pass an ethical standards test. The most reputable is FreeDebtSettlementAdvice.com.