Debt Consolidation - A Beneficial Method to Reduce Multiple Balances |
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By: Dilum Holiyabandara Posted: 2010-11-10 07:15:22 |
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Is it hard for you to handle two or three credit card debts at once? Getting hundreds of notification and pestering calls? If you are looking for a way out, debt consolidation will be the best method for you. It is the wisest of all the settlement programs to handle multiple debts. Usually, credit cards charge a high interest rate since it is an unsecured debt. The creditor has not given any chance to take back his money since no collateral is attached to an unsecured debt. So if this is your situation, debt consolidation is my suggestion for you.Under a debt consolidation program you can combine two or three unsecured debts into a single loan. According to the laws, you are allowed to consolidate only secured debts- a loan which is secured by a property. But as a remedy for the rising amount of bankrupts, the /US government has loosened the requirements. So the debtors are given a chance to consolidate even unsecured debts.The main advantage of this program is that you can secure a lower interest rate. Imagine that you handling three credit cards with the interests of 18%, 12% and 10%. This is how you secure a lower interest-
18%+ 12%+10%/3 = 13%Instead of paying individually, you will have to pay a fixed interest with a fixed monthly payment. Since you get a lower interest, you can save a considerable amount of money in your pocket. Besides, this process is easy to handle and less troublesome. If you hire a debt consolidation company to handle the process for you, you can be free as a bird. They will look after everything for you. You just need to pay the monthly installment.Finding legitimate debt settlement companies is very important. Unfortunately there are predatory debt settlement companies on the market so consumers need to know how to find legitimate services. To locate the top performing debt settlement companies in your state check out the following link: Free Debt Help |
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