If you are considering debt-consolidation options, avoid these misrepresentations: Credit counseling involves helping consumers develop a budget and the discipline to make steady payments to clear their debt loads. "Most of these individuals make a decent living, but at the end of the week don't have enough money and don't understand why," says Joel Greenberg, president of New Jersey-based Novadebt.
Debt-management programs -- or DMPs as insiders like to shorten it -- are one tool in the credit counselors' kit.
There are three major types of debt consolidation: Debt Management Plans, Debt Consolidation Loans and Debt Settlement.
These are not quick fixes, but rather long-term financial strategies to help you get out of debt.
Whichever option you choose, you will use it to pay off your multiple balances.
Then you’ll only have one monthly payment: the loan, the credit card or the debt management plan.
That can lead to a domino effect where you miss payments, your interest rates get raised, and then you can’t stay above water.
The best way to consolidate credit card debt under ,000 could be to get a zero-percent interest credit card and transfer balances from high-interest credit cards over to it.When Norm Bour was 24, credit was so hard to come by he couldn't get a gas station company credit card without begging.While it's important for you to get a handle on your debt, how you go about it is just as important.The reason this can be helpful to people with a lot of debt is that it can solve three of the worst problems you face: 1) High interest rates Some types of debt (particularly credit cards) can have extremely high interest rates – up to 25% or more.If you’re in that kind of situation, there’s a good chance your debt will grow faster than you can pay it off.
Today, a majority of the home equity lines he approves as owner of Priority Plus Lending will be used to pay off Americans' credit card debts.