Your One Stop Resource for Saving Money.
Information on Online Debt Help Company - The Bills.com Blog
Bills.com Blog > Debthelp Questions > Information on Online Debt Help Company
Information on Online Debt Help Company
Question: Dear Bill, was wondering if you knew anything about www.netdebt.com? I've been trying to get info on them, can't find anything.
Answer: Thanks for your question. I cannot comment directly about Netdebt.com but I can tell you that you need to shop around and find the best company and the best solution for your own needs. There are a variety of firms out there offeringonline debt settlement and other forms of debt consolidation. Generally, I would make sure that any firm you choose is a member of the Better Business Bureau and get a sense for the quality of the organization (www.bbb.org).
Bill is friends with the folks at Freedom Debt Relief . They are a good organization and are members of the Better Business Bureaus. They can be reached by phone toll free at 1-800-544-7211 or online at http://www.freedomdebtrelief.com.
If you are curious about all of your alternative solutions, I'll outline a few below. Since debt consolidation comes in many forms, it is important that each consumer reflects on what their needs and concerns and financial situation is before signing up for an online debt consolidation program. The four primary concerns for most consumers are: i) monthly payment, ii) time to debt freedom, iii) total cost, and iv) the credit rating impact of the consolidation program. Be sure to evaluate each program, relative to your prioritization of these factors.
Credit Counseling
Credit counseling, or signing up for a debt management plan, is a very common form of online 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. While 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… and, 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.
Debt Settlement
Debt settlement, also called debt negotiation, is a form of online debt consolidation that cuts your total debt, sometimes over 50%, with lower monthly payments. Debt settlement programs typically run around three years. 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 online 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 Chapter 7 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 online debt consolidation. 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 loan 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: while there are many forms of online debt consolidation, many people with good to perfect credit who own homes should look into debt consolidation loans, while 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 online debt consolidation option that fits for you.
I hope the information provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com/blog/
Also, make sure to get a free financial health check-up with Bills IQ!
User Comments
Submit questions/comments about this post:
Bill has answered all sorts of questions and has been able to provide those in need of financial guidance with helpful and valuable advice and information on their specific financial area of interest. If you need specific guidance on any of the above mentioned financial areas, feel free to Ask Bill your financial questions and get better informed. Also, make sure to get a free financial health check-up with Bills IQ!
© 2006 - 2008Bills.com LLC. All Rights Reserved.
1. Posted by Vasundhara on Friday 6th June 2008 04:43
Not only http://www.netdebt.com but also number of other websites are mushrooming the Internet offering the same services with different names, for example - credit card debt help,debt relief,credit card consolidation,consolidating credit cards,help with credit card debt,debt relief,debt consolidators, credit card debt settlement,consolidate debt, online debt consolidation,credit card consolidation loan,pay off credit cards,debt reduction,pay off debt,debt relief,credit card help,debt solutions,bill consolidation,debt help debt negotiation,how to consolidate debt,debt solution,consolidate bills,debt relief programs help with debt,bill consolidation loan,credit card debt reduction,consolidating debt,help with bills, debt settlement,bill help,credit card debt relief etc. Why so many websites on same subject. Are really so many Americans debt ridden? Will these websites really help them out? Number of questions arise in the minds of the common man. Only time will prove the authenticity of these websites or companies.
2. Posted by Nithin on Friday 6th June 2008 08:54
Yes, that's right. Debt is a major issue in America. The internet can be a boon and a bane when you are looking for help. But, with some good research, one should be able to find a reputable company to do business with. Don't just fall for what they say on the website, do offline research as well. Common things to look for would be the company's Better Business Bureau rating, industry affiliations such as The Association of Settlement Companies (TASC), the National Foundation for Credit Counseling (NFCC), Dun and Bradstreet rating and so on. One should also see how long the company has been in business. Creating a website can be done quite easily, but it’s the company behind the website that is going to deliver results. The web is there to help, not to solve your problems.