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Advice on help to consolidate bills - The Bills.com Blog
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Advice on help to consolidate bills
Friday, Oct 12, 2007
Question: I would like to find out what the fees are for your company to consolidate my bills.
Answer: Bills.com does not directly offer debt consolidation services; our goal is to provide valuable information to consumers and connect them with pre-screened financial services companies depending on the consumers? needs.While fees is an important part of picking the right debt relief company - it is only one of many variables (including monthly payment, credit impact, total cost, time to debt freedom, and others). Bills.com offers a
free debt consolidation quote with one of Bill's approved debt help partners.
Each of our affiliate companies charges different fees for its services, so I cannot tell you specifically how much you should expect to pay in fees. If you are interested in debt relief programs, such as debt settlement or credit counseling, I encourage you to visit the Bills.com debt help page where you can read up on the various options available to you. If you enter your contact information in the Bills.com Savings Center at the top of the page, we can refer you to a debt relief program that fits your needs. The individual companies we work with will be able to explain their fee structures, allowing you to choose the best company to help you resolve your debts.
Now, let's get you some advice on what is the best debt consolidation program for you:
Debt Consolidation Help comes in many forms, from payment plans to loans to resolution strategies, so it is important that you spend some time prioritizing your own personal finance needs, concerns and financial situation before signing up for any debt consolidation help program.
The four primary concerns for most consumers are:
1. Monthly payment
2. Time to debt freedom
3. Total cost
4. Credit rating impact of the debt consolidation program.
Be sure to evaluate each program, relative to your prioritization of these factors.
Since there are a variety of debt consolidation options, including credit counseling, debt negotiation/debt settlement, a debt consolidation loan, and other debt resolution options, it is important to fully understand each option and then pick the solution that is right for you. I will walk you through each, in turn.
Credit Counseling
Credit counseling, or signing up for a debt management plan ("DMP"), is a very common form of debt consolidation. There are
many companies offering online credit counseling, which is essentially a way to make one payment directly to the credit counseling agency, which then distributes that payment to your creditors. Most times, a credit counseling agency will be able to lower your monthly payments by getting interest rate concessions from your lenders or creditors. It is important to understand that in a credit counseling program, you are still repaying 100% of your debts ? but with lower monthly payments. On average, most online credit counseling programs take around five years. Although most credit counseling programs do not impact your FICO score, being enrolled in a credit counseling debt management plan does show up on your credit report. Unfortunately, many lenders look at enrollment in credit counseling akin to filing for Chapter 13 Bankruptcy or using a third party to re-organize your debts. This is typically a good form of debt consolidation help if you have lots of high interest credit card debt and just want a lower monthly payment.
Debt Settlement and Debt Negotiation
Debt settlement, also called debt negotiation, is a newer form of debt consolidation help that cuts your total debt, sometimes over 50%, with lower monthly payments. Debt settlement programs typically run around three years - so they are a short programs with low monthly payments that can save you the most money while avoiding bankruptcy.
It is important to keep in mind, however, that during the life of your debt settlement program, you are NOT paying your creditors. This means that a debt settlement solution of debt consolidation will negatively impact your credit rating. Your credit rating will not be good, at a minimum, for the term of your debt settlement program. However, debt settlement is usually the fastest and cheapest way to debt freedom, with a low monthly payment, while avoiding Bankruptcy. The trade-off here is
Debt Settlement and Debt Negotiation
Debt settlement, also called debt negotiation, is a newer form of debt consolidation help that cuts your total debt, sometimes over 50%, with lower monthly payments. Debt settlement programs typically run around three years - so they are a short programs with low monthly payments that can save you the most money while avoiding bankruptcy.
It is important to keep in mind, however, that during the life of your debt settlement program, you are NOT paying your creditors. This means that a debt settlement solution of debt consolidation will negatively impact your credit rating. Your credit rating will not be good, at a minimum, for the term of your debt settlement program. However, debt settlement is usually the fastest and cheapest way to debt freedom, with a low monthly payment, while avoiding Bankruptcy. The trade-off here is
a negative credit rating versus saving money.
Debt Consolidation Loan
Many people think first of a debt consolidation loan when seeking debt consolidation help. Usually, this is reserved for home owners with equity in their homes that can be tapped to payoff other debts. This option typically means a second home loan (or home equity line of credit) or refinancing your primary mortgage. In a debt consolidation loan, you exchange one or more loans for another. The most frequent form is taking out a mortgage loan, which carries a lower interest rate and is tax deductible, to pay off high interest rate credit card debt.
It is important to be aware that shifting unsecured debt to secured debt can create a volatile situation, if there is ever a chance that you cannot afford the new mortgage payment you are now putting yourself at risk of foreclosure! In the case of a debt consolidation loan, most mortgages are 30 year loan, which means that the total cost and the time to debt freedom could be very high? but the monthly payment will be lower than other options and there is no credit rating impact.
Net-net: Although there are many forms of debt consolidation help, many people with good to perfect credit who own homes should look into debt consolidation loans. On the other hand, consumers with high credit card debt and poor credit may want to explore debt settlement or debt negotiation. However, each consumer is different, so find the debt consolidation help program and option that fits for you.
Bills.com makes it easy for you to apply and get a free consultation with a pre-approved partner, by following a debt relief savings quote .
Hopefully, one of the several options I have described above may be able to help you. I encourage you to explore Bills.com to read more about debt help and other options available to you.
I hope this information helps you Find. Learn. Save.
Good Luck,
Bill
www.bills.com
Debt Consolidation Loan
Many people think first of a debt consolidation loan when seeking debt consolidation help. Usually, this is reserved for home owners with equity in their homes that can be tapped to payoff other debts. This option typically means a second home loan (or home equity line of credit) or refinancing your primary mortgage. In a debt consolidation loan, you exchange one or more loans for another. The most frequent form is taking out a mortgage loan, which carries a lower interest rate and is tax deductible, to pay off high interest rate credit card debt.
It is important to be aware that shifting unsecured debt to secured debt can create a volatile situation, if there is ever a chance that you cannot afford the new mortgage payment you are now putting yourself at risk of foreclosure! In the case of a debt consolidation loan, most mortgages are 30 year loan, which means that the total cost and the time to debt freedom could be very high? but the monthly payment will be lower than other options and there is no credit rating impact.
Net-net: Although there are many forms of debt consolidation help, many people with good to perfect credit who own homes should look into debt consolidation loans. On the other hand, consumers with high credit card debt and poor credit may want to explore debt settlement or debt negotiation. However, each consumer is different, so find the debt consolidation help program and option that fits for you.
Bills.com makes it easy for you to apply and get a free consultation with a pre-approved partner, by following a debt relief savings quote .
Hopefully, one of the several options I have described above may be able to help you. I encourage you to explore Bills.com to read more about debt help and other options available to you.
I hope this information helps you Find. Learn. Save.
Good Luck,
Bill
www.bills.com
Also, make sure to get a free financial health check-up with Bills IQ!
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