It happened to Uncle Larry. And sadly, it happens to millions of other honest, hardworking people in the UK and worldwide. Debt can sneak up on the best of us and hobble us. First you start off being a little behind on bills, then you max out your credit cards, then you get new credit cards and an overdraft to pay off your old credit cards, and now.. youre out of options. Your next months paycheck will go towards clearing old debts, while new ones are piling up. Now debt collectors are calling you daily, and the stress is affecting every part of your life. Considering the outrageous interest rates that youre paying, it is likely to take you many years to pay off your debts.
But it doesnt have to be this way.
Debt consolidation services are specifically designed to help people in these situations to get back on their feet quickly. Although the details vary depending on the nature and magnitude of your financial troubles as well as the credit counseling company you use, the majority of debt consolidation services operate in the same way. The credit counselors will review the details of your financial picture and explain if, how, and where they can save you money. If you like their proposal and if you agree to pay the fees they charge for their debt consolidation services, the company will go to work on your case.
Debt consolidation services offer numerous attractive benefits. For example, the credit counselor assigned to your case will call your creditors to tell them that you are working hard to pay off all your bills. The counselor will often negotiate a lower interest rate on at least a portion of your current outstanding balances, which of course will save you money right straight away. A second benefit youll get from debt consolidation services is the ability to make a single payment each month to pay down all your bills, rather than having to juggle ten or more payments on your own. This is very convenient as well as being a great time-saver, and youll always be right on top of your payment, rather than worrying about whether you sent out all the bills on time.
Most companies that offer debt consolidation services can also assist you to get a loan to pay off your balances. The loans can either be secured or unsecured. A secured loan usually uses real estate as collateral, so you can only get this kind if you own a home or other property. If you are a renter, you would have to get a personal, or unsecured loan. In this case, you wouldnt be putting up any collateral for this loan, therefore you can expect to pay higher interest rates than on a secured loan.
Ultimately, debt consolidation services provide you with a lot of options for dealing with a difficult financial situation. A credit counselor can help explain these options more thoroughly and give you advice as to which course of action is best for your particular scenario. By taking advantage of professional debt consolidation services, you will be able to take control of your personal finances and bid goodbye to your debt problems.
Roger Rylax is a journalist for Debt Consolidation UK, a personal finance website providing free help, advice and resources on topics such as debt consolidation, bad credit loans and refinancing.