What should you know about debt consolidation? Where might I find information that is easy to understand? How do I know if information is correct and is supplied by experts?
Make sure a debt consolidation service have the proper qualifications. Is there an organization that they are certified through? Are they backed by reputable institutions that have a good reputation for reliability? This lets you know if a company.
Many creditors will modify payment terms to help debtors who are trying to pay off their debt.
Never borrow money from unknown entities. Loan sharks know you need help. If you must borrow money, work with someone who has a strong reputation, along with getting a good interest rate.
Many creditors will accept as much as 70% of the balance in a lump sum. This will not affect on your FICA score; it may even help it.
Debt consolidation programs generally are there to help, but make sure they are not scams. If you see offers that are simply too good to be true, then it is most likely exactly that. Get all of your questions answered before choosing a debt consolidation company.
You might consider drawing money out of your retirement fund to help you get your high interest loans. Only do this option if you can afford to pay it back within five years. You will be required to pay taxes and penalty if you cannot.
If you have no other option when it comes to your debt, you are sometimes able to borrow funds against a 401k account. This lets you the power to borrow your own money instead of a traditional bank for a consolidation loan. Be sure you’re aware of the details prior to borrowing anything, since it is a somewhat risky proposition.