The most crucial thing you must do if you are under a seemingly insurmountable mountain of debt is to stop using credit. Destroy your credit cards and vow not to take on more debt until you have solved the problems you have right now. Settle what you can and then move on to the next option: debt consolidation.
Debt consolidation should be considered after you have done what you can personally do to take care of your debt. Not all debt consolidation is the same so you will need to be careful when choosing a consolidation company. If you own your own home and have paid a substantial amount on it, you may be able to get a home equity loan to cover your debts. These are tax deferrable and likely lower in interest than your individual debts.
If a home equity loan is not possible for you, there are debt consolidation companies that offer other ways of consolidating and settling debt. Companies with good reputations are often able to mediate between you and your creditors. By doing so, they may get interest rates lowered and even be able to help you settle for less than you owe. The rest of the debt is then lumped into one by either an unsecured loan or an offer to distribute payments for you. The interest is usually lowered and the payment is lower than you were paying when dealing with them all on your own. They do charge a fee for their services and it is added to your monthly payment.
To find a reputable debt consolidation company, use the internet to find consumer reports. The Better Business Bureau's online site may have information on the companies you are considering. Read all the reviews and talk to other people who have used the company. Then, call the company and ask about their services. Make sure to ask them for detailed information on fees you will owe them and exactly which services they offer. A good company will often offer credit counseling. This kind of counseling can not only help you get out of debt but can help to keep you out of debt.
The last alternative to mounding debt is bankruptcy. Because of what this does to your credit report, you should exhaust every other option before going that route. If you cannot do it on your own, an honest debt consolidation firm may be able to help you avoid the consequences of bankruptcy.
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to find a Debt Solution, you need to visit 'The Debt Solution' blog. There is find loads of vital information on finding the right company, common pitfalls that you must avoid as well as links to top sites for becoming Debt Free
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