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					Title:
Do You Need Financial Help To Help With Monthly Bills?

Word Count:
987

Summary:
Debt consolidation can offer you relief from the day-to-day struggles
faced by many people who have more debt than their income can support. If
you are facing financial ruin, or have creditors calling you to make your
payments, you need to look into other ways to get your debts in order and
find more manageable monthly repayments.

You may have heard others talking about debt consolidation and you may
even be considering it yourself. Let’s take a look at some of the
benefi...


Keywords:
Debt Consolidation, credit counselors, debt consolidation loans


Article Body:
Debt consolidation can offer you relief from the day-to-day struggles
faced by many people who have more debt than their income can support. If
you are facing financial ruin, or have creditors calling you to make your
payments, you need to look into other ways to get your debts in order and
find more manageable monthly repayments.

You may have heard others talking about debt consolidation and you may
even be considering it yourself. Let’s take a look at some of the
benefits that a debt consolidation loan has to offer and how this can
help you, the consumer.

What Is Debt Consolidation?

When you have multiple debts from different institutions, lending
companies and so on, you will no doubt be paying huge amounts of interest
on these. Coupled with large monthly repayments, it is nearly impossible
for you to pay off your debts, no matter how much of your hard earned
money you are pouring into them.

In order to pay your debts, you need to level the playing field by
lowering your monthly spending on these. The problem is that, at the
current interest rates that you are likely to be paying, it is impossible
to lower your repayments and still pay off the principal.

Debt consolidation basically takes all of your debts, such as unsecured
loans, student debts, your mortgage, your car repayments, credit or store
cards, or basically any money that you owe, pays them off and leaves you
with one loan and one set of monthly repayments. With only one set of
repayments to make each month, you have much more control over your
finances.
But the great thing about it is that, often, you can obtain a much lower
interest rate on these debts. This means that you pay less money, as well
as pay off more of the principal of your loan each month, giving you more
breathing space.

Often, you are able to get a much lower interest rate from a debt
consolidation company if you have some sort of collateral, such as your
home or a car. By changing your debts to a secured loan, the bank sees
you as a safer risk and will reward you for it with lower interest rates.
Just make sure that you understand that once you secure a loan, because
you are giving the lending institution the right to foreclose on your
collateral if you stop making payments.

There are also non-secured consolidation loans available, and although
they may have a lower amount of interest that you are already paying,
they will still be higher than if you had collateral to secure your
consolidation debt loan with.

What Are The Benefits Of Debt Consolidation?

-Lower the amount of interest being paid every month. If you shop around
and find a good lending institution willing to provide you with the money
to pay off your debts, they will often offer you a much lower interest
rate than what you are paying on your already existing debts, especially
ones with much higher interest rates.

-Only one payment means more savings. Since there is only one set of
monthly repayments to make with a consolidation loan, you can take the
loan over a number of years to make your repayments smaller and more
manageable. This can give you some extra money each week in your pocket,
rather than it going in on high interest repayments.

-Stop harassing phone calls from debtors. No more harassing calls from
creditors screaming for you to make your repayments when you don’t have
the money is one of the most enticing benefits of taking out a debt
consolidation loan. Once you pay off your creditors, you will only be
dealing with one company. Your repayments will be more affordable, making
you more likely to keep up to date with your repayments.

-Stop late fees and over the limit fees. There is nothing worse than
trying to make payments on your outstanding debts only to find that all
of the money that you have paid has gone on late fees and over the limit
fees, leaving you in the same boat that you were in before making a
payment. When this happens, it seems as though you are wasting your time.

With debt consolidation, you start off with a clean slate, which means no
more late or over limit fees, giving you the opportunity to start paying
the principal of what you owe again, rather than fees designed to rob
you.

-Raise your credit score or start repairing it. You credit score is vital
to getting anywhere in life. Without a good score you are unlikely to get
loans, credit cards, or financing when you need it. When you do get a
loan with a bad credit score, you are often given the highest interest
rates allowable, making it nearly impossible to ever pay back. By
consolidating your debts and being responsible with your repayments, you
can begin repairing any damage done to your credit score, bringing you
back to a credit-worthy customer.

You may find it helpful to speak to a debt counselor who can help you
make a budget and educate you on how to use money wisely. There are many
credit counselors available and many of them offer their services at a
very cheap rate, or for no cost at all.

Don't forget that if you are securing your loan with collateral, such as
the family home or vehicle, make sure that you budget carefully and can
afford to make your monthly repayments on time.

Consolidating your debts, in particular, credit card debt consolidation,
is well worth looking into if you are in need of changing your financial
situation for the better. Just make sure that when you are looking for a
debt consolidation loan, you are serious about repaying your debts and
vow to stay away from the lure of getting into even more debt.

				
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posted:1/6/2011
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