Are,Debt,Consolidation,Agencie finance, share, loan Are Debt Consolidation Agencies The Solution?
Thankfully, there are now several web sites that are there to help people like you with bad credit to find the fast personal loans that you need. When you have bad credit, the first thing that you should be looking for is a loan company that If your financial problems have reached the point where you do not see a way out and you feel as though you are drowning in debt, your best way out is through declaring bankruptcy. Filing may well allow you to get your finances back on track
No Company will aid you with your debt problems out of the goodness of their hearts. Even though there are some non-profit debt consolidation agencies, the non profit tag is open to discussion to say the least. Understanding how these agencies make money will help you decide whether you should hand them in your debt problems to be taken care of.A Common SituationBills piling up, credit card balances left unpaid, medical and legal fees you cant afford. Does it sound familiar? These situations are more common than you may think and there is no easy solution to them. A true fix to these problems includes a good amount of sacrifice on your part in order to cut on your expenses and commit to a long period of debt repaying without incurring in new debt.How Does a Debt Consolidation Agency Make MoneyThere are different ways for a debt consolidation agency to earn cash while consolidating your debt. All of them are legal and even fair since they are actually offering a service to both parties from which they can collect money. However, the amount of money they collect may be abusive so you need to be careful not to hire the services of some agency with high charges.Also, there are some agencies which are not legit and ask you for money to make payments on your behalf but then they just keep the money, so make sure you track payments to your creditors and dont just leave it all to them.What they Charge YouSome debt consolidation agencies charge a fee for their services or a percentage of the money they handle for you. They may charge a fixed fee for negotiating with your creditors and delivering payments to them on your behalf, or they can charge you a percentage that should never exceed 10% on the overall amount of money they handle to make payments.What they Charge the CreditorsThey can also charge the creditors a small amount for collecting the money for them thus making sure you dont miss payments or pay late. This is a very valuable service for your creditors and they show their gratitude by resigning a percentage of the money they receive from you. Those Debt Consolidation Agencies who claim to be non-profit and actually dont charge you any money for their services, make money this way.Most Debt Consolidation agencies however, make money by combining these two methods, charging you an additional amount of money for negotiating and agreeing with your creditors a reduction on your debt and an extension on your payment schedules and also charging the creditors a small amount for handling their collections.What you get in ReturnIn Exchange for the amount you pay, youll get a debt reduction that can reach up to 60% with an extension on your repayment programs that will make your monthly payments even more affordable. All of these can be done by yourself but if you dont know how to negotiate with your creditors or dont feel comfortable doing so, contacting a debt consolidation agency might be the solution.
Are,Debt,Consolidation,Agencie