The Benefits of Military Debt Consolidation

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We are currently enduring one of the worst recessions that the United States has seen for many decades. This has caused a great deal of financial trouble for many people, especially those on lower wages. Many people have been left with numerous debts and unpaid bills that they simply cannot afford to pay back. If you find yourself in this position then debt consolidation can be a proactive and beneficial way of dealing with debt. In addition, if you are in the military and you need to consolidate your debts you are entitled to military debt consolidation.

Military debt consolidation programs work in exactly the same way as normal consolidation of debt in that all of your debts will be put together and an affordable monthly payment will be set up for you to eradicate the outstanding debt. However, as a military employee you are entitled to a number of benefits that normal citizens are not. These are set to help you make the payments more easily. You can be offered a much longer term over which to pay the money you owe. You can also qualify for preferential interest rates for the amount of money you need to borrow. All of these factors are designed to bring down the level of the monthly payment that you have to make. Obviously, the lower the payment the better it is for you and your family.

To attain this type of consolidation you will need to go to a specialist lender to help you through the procedure. Even though the rates and the terms that you will be offered are better than the normal it is still wise to shop around before you actually decide which of the lenders to go with. Also, as with any type of financial decision be sure that you read all of the documentation thoroughly before you sign.

What You Need to Know About Credit Card Debt Solutions

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The ‘transforming debt into wealth scam’ has been hitting the headlines for quite some time now. Debt consolidators responsible for assisting people with their debts are not as honest as they seem to be. Continue reading to find out a few things that could be of help to you.

Credit card debt solutions companies are those companies that promise to erase your indebtedness in an instant. What they do as debt consolidators is that they speak to all your current creditors and make an arrangement to pay off your debts with them. However, this is a favor for a favor kind of situation. Therefore, it is expected of you to pay the debt consolidation company the money that you previously owed your different creditors since such a company would have paid off your debts for you. The really awesome thing about them is that you will not have hordes of credit companies breathing down your neck, that’s the beauty of it all.

However, this arrangement will not reap any monetary rewards for them if your debts remain the same. It is for this reason that most of these companies charge you high interest rates, debt servicing fees and other charges that might not be readily visible. People seeking these services are thus advised to read the terms and conditions carefully before committing to such a contractual arrangement. It is normal to jump past these terms of conditions in a desperate attempt to erase stressful debts, but be careful.

In a lot of instances such solutions can actually further damage your already ruined credit score. The Credit Bureau, upon discovering your switch to such solutions, will immediately reduce your credit score because they realize that you are not in fact handling your indebtedness but that some other company is doing it for you.

But if you simply wish to get a quick fix then this is the way to go. There is no real reason to prolong credit payments when you know you can’t pay.