When the credit cards and missed payments start to back up, what can you do? Many Americans today are choosing personal debt consolidation as a means to relieve the stress and pressure caused by owing too much money on too many bills.
There are two options that you can choose from for personal debt consolidation. One is to choose a service that is “for-profit” and the other is “free.” Those that are “for-profit” typically charge a flat monthly fee and possibly a percentage of the debt you owe. Free personal debt consolidation services are usually in conjunction with a creditor and charges a flat monthly fee. In the long run, the debtor will save more money when they choose the “free” service.
Free services are often able to help the debtor beyond personal debt consolidation. Typically they can help those with poor credit rebuild their credit and repair their credit rating. They often provide credit counseling and are able to show people how to get back on their feet financially and then how to manage their money.
For those who are severely in debt, they will want to be sure that they are choosing the best option for their financial future. They will need to choose the right debt consolidation program that will help them get back on their feet as quickly as possible. Accelerated debt consolidation is usually the best program. This program is similar to regular debt consolidation but they actually divide the debt into two different areas. One area is secured debt and the other is unsecured debt. These programs only consolidate the unsecured debt. Unsecured debt includes your credit cards, personal loans and other personal lines of credit. Secured debts are debts that involve collateral such as your car or house loan.
Most individuals will find that they benefit from the “free” personal debt consolidation businesses the best. You may pay a monthly fee, but you are not losing additional money by paying a percentage of your debt to the debt consolidation company.