Making a budget is a good first step in learning to save
Saving up is a good idea for countless reasons. But breaking old habits and setting some money aside each month can seem like a daunting task.
Obtaining a $500 Payday Loan
Follow these simple steps if you don't like cheaper borrowing options.
The Yo Yo Car Dealership Scam
This is a scam and is illegal. If you find yourself being tricked this way, you need to file a complaint.
A Plastic in Every Pot
Students must prove income before gaining approval for a credit card.
Tips for writing your résumé
Be proud of what you've accomplished, but limit it to a couple of pages.
Alternatives to Bankruptcy
Although bankruptcy is often the best choice for people with debt problems, it is not always the case.
The Basics: Entrepreneurialism Today
Starting your small business can boost income if you can do it without taking on new debt.
How Debt Management Consultants can Help
A debt management consultant assists in helping you achieve debt relief.
About to fall behind? A lower credit card payment can help
You might be surprised at how much your credit card payments can drop.
Steps to Debt Relief Can Include Wrong Turns
If you know you need help, follow this guide to find a trustworthy helper.

Call us now

1-800-838-0861

Considering Bill Consolidation and its Costs
By Siddarth Nagaraj on January 31, 2011

864442_36683780-(1).jpgWhen you are frustrated and mired in debt, any agreement that seems to offer the chance to alleviate your situation can appear attractive. Bill consolidation is one of many options that are available to those facing dire straits. While it may be worth contemplating depending upon your financial situation, it is also a means of debt resolution which is used by numerous predatory companies that target vulnerable individuals and play upon confusion and reluctance to be heavily involved in one’s own finances. Before making a decision about whether to pursue bill consolidation, you should be conscious of the consequences of becoming involved in such programs, and how to avoid dangerous traps.

Bill consolidation refers to the process of transferring all debts and loan payments into one bill. In order to consolidate your debt, you must be approved for a debt management program. Under the terms of a debt management program, the company in question will attempt to negotiate a lower interest rate with your creditors in exchange for a fee. Theoretically, the lower rate that is agreed upon is the primary benefit of bill consolidation. The bill consolidation service reciprocates the payments it receives from you by paying your debtors.

The fee charged by the bill consolidation service is sometimes determined in relation to the total debt that is to be consolidated, and it may vary widely, with some rates being extortionately high (common practice with debt settlement companies). Some companies demand an upfront fee, but an increasing number of services charge monthly fees. If you choose to enlist the services of a bill consolidation program, remember that many services use the policy of charging monthly fees as a way to conceal high rates and fool customers. Whenever possible, avoid programs that charge upfront fees, as these are usually extremely high (although monthly rates are often not much lower). Furthermore, many of these programs will claim that their initial fees are partially refundable upon completion of the program, but few actually complete many of these programs given the burden of the service’s cost.

In order to find out a consolidator’s rate, you will need to request a quote. If a bill consolidation service demands a fee in exchange for a quote, regard it as a warning not to employ their services. If the consolidation program offers flexible rates, make sure you know how it will fluctuate and remember that consistent payments are necessary in order to qualify for them.

Remember that bill consolidation is not an “easy fix”. Frequently advertised as a convenient way to simplify your financial dealings, consolidation should not be regarded as a way to escape responsibility for your finances. Many bill consolidation programs, especially those whose services may do more harm than good, try to appeal to potential customers’ desire to avoid having to manage their financial affairs. If bill consolidation is the right path for you, then pursue it with caution, and make sure you do not become uninvolved or relinquish responsibility for your finances.
Current Rating: 0 (0 ratings)
Share:   Add to Twitter   Add to Facebook   Add to Terchnorati   Add to Google Bookmarks   Add to Digg   Add to Reddit   Add to Delicious
Defeat Your Credit Card Debt Today!
 

() -


*Please input the following code to safely submit your information.
 Security code