Tips on Securing a Debt Consolidation Loan

It's the day you've been waiting for the last two weeks... payday and the only time when your face lights up and you actually go to the office with a lot of wonderful, dreamy thoughts in your head - such as how fast you'll be able to bolt out of the office and get yourself down the to nearest mall and you can already smell the Caffè Verona® you plan on ordering at Starbucks.

Either way, you seem compelled to impulsively spend all of that hard-earned cash on something that in all likely-hood you can do without. Like that dress you'll probably wear just once or the Egyptian silk sheets that you've been drooling over ever since you noticed that Jessica Simpson on Newlyweds sleeps on in luxurious comfort. Never mind they are actually worth fourteen hundred dollars... but like you always tell yourself - you deserve it.

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Besides, what's the harm in rewarding yourself for a job well done? You deserve some pampering too. You may even find yourself making plans at some luxurious spa, to sample of their relaxing (not to mention, extremely costly) facials, massages or treatments. After all, you work hard and so you've definitely earned it since you've been stressed out all month long from your hectic schedule and tight deadlines.

On the other hand, have you ever even thought of saving... even occasionally putting a portion away for a rainy day? Have you thought about you future? And if it actually involves those Egyptian silk sheets that you just purchased or the designer coffee that you simply cannot seem to get enough of - is it really worth it? Unfortunately for too many, sooner or later reality sets in and when it does it hits them like a Category 5 hurricane and they wake up they realize (hopefully not too late) how deeply they've buried themselves in an oppressive amount of debt. And they also realize that they have absolutely nothing to fall back on in order to get themselves out.

You could simply hand in the towel and declare bankruptcy (many do) however, an alternative, less stressful and smarter way to go, is to at least initially, look into getting a debt consolidation loan.

The thought of a debt consolidation loan may not be all that enticing to most of the debt saddled, but then again what's the alternative - bankruptcy or paying minimums on your credit cards at 20% interest for the next 20 years?

Unfortunately for those of you who have nothing in your savings or other assets to tap into, it may be your best option and perhaps the first really smart financial decision you've made in quite awhile. You are clearly aware that a ton of companies offer debt consolidation loans, just the fact that you are reading this article attests to the fact that you've done some type of internet search related to debt or debt consolidation.

You just have to be honest about your finances or whatever it was that you were doing with your money (when you still had some) so that whomever you decide to go with to try and secure that debt consolidation loan will be able to provide you with an accurate scenario of your financial present and future. The past is... as they say, history. You really have no choice but to simply move on, walk away from your past mistakes and hope that you've learned something useful.

And then, incorporate those lessons into your future dealings with money and hope against hope that your debt consolidation loan will be approved so that you can take the overwhelming burden of debt you've saddled yourself with and leave it far behind. As you search for a debt consolidation loan make sure you do your due diligence by shopping around and asking questions whenever you feel lost by the "financial jargon" or the whole process in general. If you do your part, you'll greatly increase your chances or working with a reputable company that's not out to take advantage of your current poor financial situation.

A final bit of advice, virtually all Loan Officers work on commission and so it's in their best interest to...

• Make sure you get the loan and
• Charge you the highest interest rate possible and the highest possible fees and still make the deal.

That being said, don't ever take the first quote you get for rate and closing costs as the best deal you can get because it very rarely is. While shopping, make sure the companies you are working with know that your shopping around tell them straight out that you will give your business to whomever can come up with the best deal and who's is up front and honest from the get-go. Never forget that you are in charge (regardless of your current financial state) and if you don't feel comfortable with your lender or what's being presented then simply move on until you find someone who treats you with the respect and dignity you deserve.

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Choose Debt Consolidation Company Carefully for Debt Consolidation Quotes

The debt consolidation market is burgeoning day by day. More and more people are filing for debt quotes to place their debts under best consolidation program. A debt consolidation quote helps you to understand the procedure of acquiring consolidation of your multiple loans from a particular company as well as to learn the terms and conditions, under which the company is going to provide debt consolidation service and counseling.

Limit Use of Credit Cards
An average American keeps at least 5 credit cards in his pocket, which means, at least 5 bills every month, in addition to other bills on household expenses, store bills and traveling expenses. It becomes increasingly difficult to operate all the credit cards and keep track of all the payments that accrue on the cards at different dates. One does not realize the damage, until it is too late and you are neck deep in debts. In such a situation, when you take quotes, you should not jump on the first one which comes your way, instead compare a few quotes of standard companies and then decide on the company whose terms are best suited to your debt consolidation loan.

These quotes are no longer considered means of non repayment by people who are short of cash, i.e. the poor. People of all classes have now accepted debt consolidation, as a part of life, which is used to consolidate all payments to creditors into one payment, and also reduce penalties and other charges levied over months by creditors on non-repayment of dues. Therefore, there is great demand for these programs, and many finance companies, big and small, have entered into this ever growing market in the past 5-10 years.

The internet has become a very good medium of getting debt consolidation quotes. Most of the finance companies on the net do not charge for giving away free quotes. Therefore, you should avoid companies which charge you for quotes, in all probability you will never hear from them again, if you make the mistake of making payments up front. It is however, quite common for reputed companies to ask for a review of your financial condition, like your income, present debts and creditors, before giving their quotes for you to consider. There are other agencies sponsored by the government, which provide you free debt consolidation services. These companies usually work on the principle of no profit no loss and the objective is to provide you relief from the debt burden.

The role of debt consolidation quotes is important to ascertain credentials of any debt consolidation program that you are considering. Based on different quotes that are offered for free you can select the best program. Debt counseling and free debt consolidation advice also come in handy to help you select the best debt relief option.

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Can Debt & Bill Consolidation Lessen all your Financial Burdens

Are you troubled with the repayment pressures from all ends, then debt consolidation solutions provide fool proof solutions to all your financial needs. Debt and bill consolidation loans are the giant loans which help the debtor to pay of all the smaller loans with higher rates of interest by one giant loan with lower rates of interest, thereby making the life simpler. But while availing such loans a collateral is required as a proof of yours being a no risk candidate. The greatest drawback of the debt and bill consolidation loans is that the authority is imparted to the creditor to seize the property or the collateral in case the money is not repaid back within the allotted time span.

Debt and bill consolidation loans are similar with not much difference. Debt consolidation is to free you from your current creditors and bill consolidation is meant to provide you with finances to pay off your current bills in time. But both of these are blessings in disguise for the people crushed under the extreme pressure of the debts from all sides. Debt consolidation provides with lucid advantages over the traditional loan packages. These loans are secure with lower rates of interest and the loan interest is worked out after taking into consideration one’s financial condition as well as amount borrowed in the form of loan.

Secondly, only one payment has to be done to the creditor, which reduces the hassles about managing accounts and repayments of different creditors. All the loans are mixed into a single loan, which makes the life simpler. The duration of repayment is larger which reduces the amount of monthly payments and hence the debt goes manageable. These days bill consolidation loan is more popular as compared to debt consolidation, with the increased access to mobile systems and personal expenditures.

Before choosing any creditor and the debt consolidation or the billing consolidation proper debt consolidation credit counseling should be undertaken and the rates and repayment time span of different creditors must be compared to obtain the lowest rates of interest and longer repayment time. Again, the interest rates increase as the time span increases, and hence proper budget planning must be done before opting for any kind of debt and bill consolidation. Certain amount of fee is charged for processing as processing fees and specific companies provide it free of cost but there are chances of scams. So, a considerable choice is required to be made before taking any further step in this sector.

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Unsecured Loan for Debt Consolidation

If you have been shopping for a loan to consolidate your credit cards, student loan, or other debts, you may want to consider an unsecured debt consolidation loan. The major difference between a secured and unsecured debt consolidation loan, is that the unsecured loan will not tie up any of your assets. You will be able to consolidate all of your debt into one monthly payment without the risk of loosing any of your current assets.

The first step in the process is to find the lender that best suits your personal needs. The internet is an excellent way of doing this, as it allows you to search dozens of lenders and request free quotes to see which lender will save you the most money.

Once you have narrowed your search down to a handful of lenders, based on the free quotes you have received, you job now is to research these lenders. It is usually a good idea to stick with well know reputable companies who have a proven track record and customer service. However, be sure to do your research online and with the BBB (Better Business Bureau) before agreeing to a contract with any company.

Once you have found a loan, or two, which you are satisfied with, you will need to qualify for it, just like any other loan. Qualifying for an unsecured loan is often more difficult than a secured loan, due to the lack of collateral, such as the equity of a home. However, there are plenty of banks willing to approve unsecured loans, even to people with a less than perfect credit history.

An unsecured loan for debt consolidation can be the simplest way to reduce the stress caused by multiple high interest debts. Reducing all of your debts into one lower monthly payment can give you the edge needed to start paying off your debts once and for all!

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Debt Consolidation Advice: Start Subtracting The Debts

Advice is not that you should feel irritated. Rather it shows the way that you can carry out the task in an easy and straightforward way. Likewise, people caught in the web of debts if perform and follow rational advice can easily disperse or eradicate the debts permanently. With this certain objective in mind, the debt consolidation advice provides simple and lenient process to surmount the bitter phase of life.

Numerous private financial institutions in the market run debt consolidation advice. Moreover, the debt consolidation advice carries into effect its operations under different tags named as debt consolidation management, debt consolidation service, debt consolidation program and such. The objectives of this specific program concentrate to solve the puzzles of debts and rescue the debtors.

Now let us discuss what the outcomes of debt consolidation advice are. Debt consolidation advice renders policy that attains the mettle to disperse the multiple debts in a single stroke. It effectively subtracts the debt burden and all financial issues. Debt consolidation advice brings a great relief to debtors because it gets them obligated to a single lender instead of many. The advice also cut way to get a loan at marginal interest charges.

If you follow the objectives thoroughly and give a microanalysis, then you will come across that debt consolidation advice fuse polices that assist debtors to stable and rebuild the deteriorated credit conditions. You can restore the financial status in future and build a good will with the lenders from the present status quo.

It is the age of technology, and now a day services provided at doorstep or can be experience from home. Just switch the online application method with the details pertaining to credit score. If you wish, you can visit personally for debt consolidation advice. Nevertheless, the online holds the power to provided immediate results to the users thus making use of your valuable time.

Debt consolidation advices can assist you to get out of the unpleasant circumstances and layer a better future.

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Credit Card Debt Management for your Debts

Plastic money or credit card has ushered a new way of spending money. Now most individuals prefer the transaction of credit cards as carrying hard cash is not at all felt convenient in the pocket. But using the credit cards to a great extent may lead to debts of a great amount. As the debts incurred on credit cards are of high interest rate, you might find it a bit difficult to manage the debts. To manage the debts in an efficient manner, you must seek the assistance of credit card debt management.

As mentioned earlier, credit card debts have a very high interest rate. The problem arises when you are not able to make the payments in time. You may have lost your employment, inefficient management of debts, use of debts to fulfill your needs or illness. Credit card debt management can be availed in the form of credit card debt consolidation, credit card debt counseling, proper budgeting and debt negotiation.

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Among all the above said options, credit card debt consolidation is considered as one of the best to deal with multiple credit card debts. Here, you manage all your multiple credit card debts by merging it in to a single manageable debt. If you are really finding it hard to nullify your debts, then debt consolidation is the most reliable way which helps you to come out of debts.

Credit card debt consolidation helps you to merge all your existing debts in to a single manageable debt. One good thing about the debt consolidation loan is that you get to resolve your debts at significantly reduced amount, low rates of interest, flexible repayment option and solitary payment for your multiple credit card debts.

Before seeking the assistance of credit card debt management, you must prepare a budget keeping in mind about the income generated and the monthly expenses incurred. Budgeting will help you to understand the debts and your income. The options available under credit card debt management not only help you to consolidate your multiple debts and enables you lead a hassle free life.

If you are knee deep under credit card debts, then you must opt for credit card debt management to get rid off the multiple debts.

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Freedom From Loans: Free Debt Consolidation

If you are neck deep in debt and loans don’t hesitate to get a free debt consolidation loan advice. Now you must be wondering about free debt consolidation loan, how it can be beneficial to us etc. So, here are the questions for your queries.

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What is debt consolidation loan?
Borrowers get loans from various sources for varied interest rates. Paying them all every month is a burden and when the amount payable cannot be paid the loan lender starts abusing the borrowers thereby causing stress and frustration to the borrower.

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Who gives the free debt consolidation advice?
Many companies which offer debt consolidation home loans or other loan lenders might provide the free debt consolidation loan advice to its customers. They provide help and guidance as how to deal with the loan installments and how to efficiently handle finances.

They not only offer guidance and counseling but they also negotiate with the debtors, or loan lenders on your behalf and help you to extent the loan payment or reduce the interest rates. Therefore the services offered by the free debt consolidation companies are very imperative. These firms can also help the student debt consolidation by offering valuable advice to students.

The services of the free debt consolidators are for free and you need not pay anything to avail these services. What’s more you can even pay them your loan advances every month, and the free debt consolidation services will pay your loans in time. Your monthly burden is thus relieved and you can comfortably continue your work without much haywire or worry.

Before actually availing thee services make sure the debt consolidation company provides all details about the free debt consolidation, loan repayment, interest or other payments etc. after carefully analyzing the pros and cons choose a plan which suits your financial stature and income. Students who avail these services should also know all the details before availing these services.

Free debt consolidation will help you to repay all high interest loans through efficient debt consolidation and you need to pay just one loan with less interest and longer payback scheme. Your monthly income, payback capacity etc will all be calculated and a plan to suit your pocket will be suggested. All you have to do is to make use of this golden opportunity and set your debt or loan records right. free debt consolidation really makes you free and happy.

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Advice when Choosing a Bankruptcy Lawyer

First and foremost, ask yourself, “Do I even need a bankruptcy lawyer to file my case?” If your case is fairly straightforward, then chances are you can get a bankruptcy petition preparer to file your case for much less than the cost of hiring a lawyer.

Despite popular conception, bankruptcy law is not very complicated, so hiring an expert most of the times does not make sense. The real question then becomes, “How complicated is my case?” In short, if

• you have 100 percent unsecured debt (credit cards, medical bills, personal loans, repossessions, etc.)
• you’re unemployed with no assets (car, home, brokerage accounts, etc.)
• you did not accumulate the debt very recently or in any way that can be construed as fraudulent (i.e. buying a big screen TV on a credit card a month before you filed) then you may not need a bankruptcy lawyer to file your case.

If your case is more complicated, then will you receive the sort of personal attention that you deserve in order to have your case properly handled? A lot of bankruptcy firms are devoted to basic filings, and you will receive little to no attention from your actual lawyer. With this much at stake, it’s important that you deal directly with a professional that is an expert in bankruptcy law.

Get a referral. If you know someone who has filed bankruptcy, don’t be afraid to ask them whether they felt their lawyer handled their case well. If you don’t know anyone who has filed bankruptcy before, then call a law firm outside of your area and ask for a referral from them.

Shop around. Most bankruptcy lawyers will at least offer a free initial consultation. Find a lawyer that you feel comfortable discussing your personal matters with and who offers a competitive rate for their fees. Remember not to compromise quality and experience just because a bankruptcy lawyer offers lower fees, however. Contact your state’s Attorney General office for a suggested list of bankruptcy lawyers in your area.

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How to Eliminate Debt Burden with Debt Consolidation

Debt is a burden most consumers struggle with on a daily basis. The approach we take in dealing with this burden is what separates us as individuals. Choosing the correct way is a personal choice involving, among other things; family discussion, best interest rate research, and visitation with a debt management or debt consolidation professional.

There are two distinct ways to deal with consumer debt.

12 Steps to Eliminate Debt Forever!: Become debt free using your current income by changing your Mind, Habits, and Spending by Sharman, G. Lawson Give you principles, concepts, information, and tips that you can immediately apply in order to obtain financial freedom. You too can be among the thousands of people that Sharman has helped to realize their dream of living without debt.

First, you may want to consider reducing the principal balance on a current loan, or even take this step with multiple loans. Paying a bit more than the minimum required and having that amount applied to the principal is one small way to reduce debt in the long run. It may be wise to look into the specific loans you have, take a close look at your budget, then see if there are ways to reduce the amounts owed on the various loans.

Another very popular option is debt consolidation. With debt consolidation, you can reduce your monthly payments by placing several loans under one all-purpose consolidation loan agreement with one lender. In addition to simplifying expenses and optimizing your budget, reducing your payment can help your overall credit profile, since debt burden is measured by comparing your loan payment as a percentage in relation to your total income.

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Debt (the amount of money owed to a bank, credit union or individual lender) is composed of just a few pieces. Simply put, debt is calculated by the amount borrowed, plus the interest charged for the privilege of borrowing said money, and usually some final additional administration and bookkeeping charges.

Tip: Be sure to include changes in interest and additional finance charges when figuring the cost of new loans and/or consolidation loans. When considering debt consolidation in any situation it is best to also understand the difference between secured debt, such as home mortgage loans, and unsecured debt, such as credit card bills.

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With the original loans or a consolidation loan, if you are able to make the payments and don't have trouble with late-payment penalties, you are managing your debt fairly well. But if you miss payments, the lender will have to take some action. It is at this point that the difference between a secured loan and an unsecured loan can be crucial. With a secured loan, the lender may be able to take your property if you don't keep up with payments according to the agreement. Most lenders are willing to work with you if they believe you're acting in good faith. A lender may even be willing to reduce or suspend your payments for a short time.

When you resume regular payments, though, you may have to pay an additional amount toward the past due total to get back on track. If you have unsecured loans, your credit rating will suffer and you will not be able to get future credit or loans easily. But, since there is no collateral to take, the debt may be discharged if your financial problems lead to bankruptcy.

This certainly does not mean that unsecured debt is the best way to go. In fact, to get unsecured personal loans you will have to have an extremely good credit history and, generally, proof of sufficient income. Making the choice between a secured loan and an unsecured loan depends entirely on the individual situation and be considered carefully.

There are other bumps in the debt consolidation road that can cause trouble if they are not understood from the beginning. The existence of several loans with high interest rates may lead you to think that debt consolidation is an easy answer. But keep in mind that lenders offering debt consolidation may charge high interest rates and significant late-payment penalties for those who already have trouble keeping up with current payments. (This may be necessary precisely because consolidators are working with problem borrowers.)

With one high interest rate rather than two or three your monthly payment is lower but, in the long run, you pay more in total. One of the key reasons for consolidating debt in recent years has been the rise in credit card debt, which often comes with interest rates that are considerably higher than with other loans, mortgages etc. People can build credit card debt because they spend more than their income, buying luxury items (or even things they feel are necessary), hoping to be able to pay off the amount borrowed with future earnings. Debt consolidation can help in many cases, though a change in spending habits is advisable so that new credit card debt is avoided in the future. In fact, almost every reputable debt management counselor will advise treating the real cause of debt problems; the lax underlying spending and saving habits of its customers.

To most of these professionals, debt is a symptom of other problems that must first be addressed. If you have built up a lot of credit card debt or your particular situation has made it necessary to get two or more loans (and you want to simplify things with one monthly payment), personal property such as a home or car may allow you to get a lower interest rate. Using a home or other valuable property as collateral allows you to work with a bank or other lender to get a secured loan.

In some cases, the total interest and the total cash flow paid towards the debt is lower, allowing the debt to be paid off sooner, incurring less interest. Because the property is a "guarantee" for the loan, the lender may offer a lower interest rate, more agreeable payment schedule and fewer extra fees and charges. (However, keep in mind the difference between secured and unsecured loans.)

Any debt consolidation plan, whether it is a home equity loan, unsecured loan with a credit card company or even a personal loan, can add to debt problems rather than help solve these same problems. That is why it is very important to take time, from the beginning, to figure all the costs for the entire period of any loan. Debt consolidation can be the answer to financial problems, if it is managed properly in the correct situation.

How to Settle Your Debts by norman H. Perlmutter Step-by-step format it guides individuals, families and businesses through a process that will end debt and reverse insolvency without filing bankruptcy. Even if you're on the brink of financial ruin, with this book you can regain financial health and get a fresh start without committing "financial suicide".

Getting out of debt isn't easy, but you can do it, you just need a plan.

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Bankruptcy Alternatives Explained

There are many steps you can take in efforts to improve your credit, eliminate your debt, and avoid bankruptcy. Which should be the ultimate goal of all people, while bankruptcy is an excellent method of helping you clear up your debt, it should only be used as a last resort.

Bankruptcy remains on your credit for up to ten years and it could result in the inability to retain any other type of credit until it has been removed or several years has passed. On thing that a debtor can do, this is especially true if they have no income or assets, is to do nothing. Yes that is right nothing, if you have no assets or income that can be garnished bankruptcy would not benefit you in any way, your financial situation would not change as a result. It is likely that without anything of high value, credits would not attempt to take any court action against you because there would be nothing they could collect.

More Than One Way Out: Bankruptcy Consequences & Alternatives by Maryland Council on Economic Education & National Foundation for Credit Counseling, National Foundation for Credit Counseling & Gelb Strategies Bankruptcy offers benefits, but it also carries significant consequences. The decisions you make when facing financial difficulty will affect your life for many years to come, so it is important to approach the issue of personal bankruptcy with care...

Another step you could take is to undergo credit counseling, you would learn how to manage your money to reduce the debt. You could create a budget that contains your monthly income and expenses, thus reducing expenses. By doing this, any extra money you have could go towards reducing the debt you owe to creditors. You could also begin negotiation with your creditors, most of them realize that bankruptcy is a viable option for those who have more debt than they can handle.

For this reason, most will be willing to “take what they can get” rather than get nothing if the debtor files bankruptcy. This option requires that the debtor has income or assets that can be used in efforts to raise money to apply towards the debt you owe.

Additionally, this can allow you to rebuild your credit instead of applying a negative bankruptcy on it. Debt consolidation is another bankruptcy alternative that many could consider, by consolidating your debts into one low monthly payment you could easily reduce the amount of your debt, get the creditors off your back and avoid bankruptcy.

Finally, another option of avoiding bankruptcy is to make a formal proposal directly to your creditors. This proposal or also knows as a deal, will allow you to create a payment plan. It is all dependent upon what area of the world you live in and the laws surrounding the area of debt compromise.

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Avoid Bankruptcy

Avoid Bankruptcy: You May Have to Pay the Debt Back Anyway

The most widely held misconception about bankruptcy is that it’s the debtor’s version of the “get out of jail free” card in Monopoly. While most people know that bankruptcy affects your credit for 7 to 10 years, very few people know that it’s possible that you’ll have to pay back the debt anyway, even if you file a Chapter 7 “straight” bankruptcy. The formal definition of bankruptcy is “a proceeding in federal court in which an insolvent debtor’s assets are liquidated and the debtor is relieved of further liability.” On the other hand, the commonplace definition of bankruptcy is probably “the process of completely wiping out your debts for free.” In some cases, the latter definition may be appropriate, but in a good number of scenarios, it’s likely that even with bankruptcy, you’ll still have to pay back at least a portion of the debt.

How To File Bankruptcy / How To Avoid It by Edward A. Haman Clearly explains the major changes that have recently been made to the nation's bankruptcy laws. Specific changes will prevent people from eliminating credit card debt and other unsecured loans by filing for bankruptcy under Chapter 7, and forcing them to file under Chapter 13, a court-supervised repayment plan.

So when is it likely that you’ll have to pay back your debts? Here are the most common scenarios when you’ll get all the negatives of filing bankruptcy (severe credit impact for 7 to 10 years), but none of the benefits (you’ll still have to pay back at least part of the debt):

Avoid bankruptcy if you make more than the average person in your state
You make more than the average person in your state. If this is the case, then it’s likely that you’ll be forced into a Chapter 13 bankruptcy plan. In a Chapter 13 bankruptcy, the court orders that you pay all your disposable income to a court appointed trustee, who in turn disburses payments to your creditors. Keep in mind that the court determines your disposable income by national and county statistics on average necessary expenses, not what you’re paying. So just because you’re paying a lot for a car doesn’t mean the court will approve it. There are numerous cases when a judge ordered families to stop sending their children to private schools so they can have more money to pay back their creditors. Moreover, if you miss even one payment, the court may consider you to be in contempt and force you to pay the full debt amount back. Chapter 13 bankruptcy is so stringent that only about one third of all cases are ever completed. Check out the census bureau for more information about your state’s median income, and remember, if you make more than the average person in your state, you should consider avoiding bankruptcy.

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Avoid bankruptcy if you have assets
If you own a home or car, then it’s possible that the bankruptcy court will force you to sell them to generate sufficient cash to pay back your creditors. Chances are if have a good chunk of change invested (unless it’s in a tax-exempt account like an IRA) then you’ll also be forced to liquidate it. If you have a second home or another vehicle (assuming you own both completely), then you’re really out of luck. Fortunately, there are some safeguards to protect consumers from bankruptcy. In Illinois, for example, every resident is entitled to at least $7,500 of the value of their home, $1200 of the value of their vehicle, and $2,000 for anything that they want (known as the wildcard exemption). Also, these values double if you’re married (assuming the property is in both of your names).
What does this actually mean? Consider the following example.

Let’s say you have a house that’s worth $250,000, and it’s in both yours and your wife’s name. You still owe about $200,000 on your mortgage, and you decided to file Chapter 7 bankruptcy. In this example, you would be forced to sell your home, and with the proceeds you would pay back the mortgage company what you owe on the outstanding balance of the loan ($200,000), you’d pay yourself the Illinois real estate exemption ($15,000), and then you’d pay back your other creditors whatever was left ($250K-200K-15K=$35,000). If this is the case, then you should try to avoid bankruptcy.

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Avoid bankruptcy if your creditors can prove you were fraudulent
If your creditors can prove that you were fraudulent and never had any intention of paying them back, then you should avoid bankruptcy. Chances are you’ll end up with a bankruptcy filing on your credit report, and you will still owe the debt.

For the majority of us it means that unless a) you don’t have a lot of equity in any of your property, b) you don’t have any investments like stocks, real estate, etc., c) you don’t care about having to sell anything mentioned in points a and b, d) you don’t care about having to give up your disposable for 5 years in a Chapter 13, and/or e) you don’t mind having your credit severely impacted for 7 to 10 years, then you may want to avoid bankruptcy.

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Do You Want To Consolidate Credit Card Debt Into Loan Payments?

With the average household debt increasing year by year it is not surprising that there are more people looking to consolidate credit card debt into loan payments each month instead. This is more than understandable as to pay off the average household debt paying the minimum payment each month would take 30 years.

Credit Card & Debt Management: A Step-By-Step How-To Guide for Organizing Debt & Saving Money on Interest Payments by Scott Bilker If you ask single Americans in their 20s or early 30s what their biggest financial worry is, most will probably answer credit card debt. Bilker shows them the formulas for digging out of the credit-card hole--methodically, systematically, and with a minimum of confusion. Surprises abound, including Bilker's advice against cutting up one's credit cards--after all, one may need that credit line in case of emergency. He also advises against paying off one's credit debt with savings, opting instead to use budgeting from salary and letting that savings grow untouched. If used correctly, this book could be a big help to those experiencing a rather common burden.

The 30 year number isn't one that I just pulled off the top of my head it is fact. Fact that if you continue to pay off that minimum amount each month and don't use your card you could end up spending a large chunk of your life putting expensive meals on credit card company shareholders tables!

By taking the decision to consolidate credit card debt into loan payments you are better off and in a stronger financial situation straight away. How do I know this, well the period of a loan is just that it is the length of time it takes you to pay off the money you borrowed. So if you borrow the money over 5 years then that is how long it takes you to pay it back!

So how do you consolidate credit card debt into loan payments? Well this is pretty simple as well. You need to shop around a little to ensure you get what you are looking for, there is nothing worse than signing an agreement to discover that you are stuck with something you didn't want for the next 5 years (or longer depending on the loan). So shop for a loan, get quotes from different companies then make your decision from there.

Important note to remember is that you are in the driving seat take your time don't be talked into signing something there and then at that moment in time. If you are a sucker for a sales pitch and need to avoid pushy people telling you how much better off you will be if you take out THEIR loan then get the quotes online!

Try not to use an agent to get the loan. They will put a percentage on the arrangement fee and you will have to pay it back, try and go direct to the loan company where you can.

Take your time, I know that if people are pushing you for payments then you need to get them off your case but if you rush you might again end up with something that you do not need or want!

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Reasons to Consider Debt Consolidation

You have several options when it comes to eliminating and rising above the debt that has taken over your life. One of the best options is debt consolidation. In this article, we will discuss the top ten reasons you should consider debt consolidation over any other form of debt relief method available.

How to Destroy Your Debts by Samuel Blankson Esential book to acquire first, before reading "The Practical Guide To Total Financial Freedom" series. It contains the technique for clearing your mortgage within the next 7 years amongst many others. If you read and apply this book, you will clear your debts and start living life without the burden of loans, mortgages or bailiffs.

Reason to Consolidate Your Debt #1 – Lower Your Interest Rates
One of the best things about debt consolidation is that more often than not, you will have the opportunity to lower your rates of interest. Instead of several different interest rates, you will obtain one interest rate, that is far lower than the many combined. Typically, when you consolidate your debt, you keep that same interest rate as well. It does not tend to fluctuate as your original debt interest rates may.

Reason to Consolidate Your Debt #2 – Lower Your Stress Levels
Debt can cause a great deal of various feelings, afflictions, and this can be on both a personal and mental level. When debt begins to take control of your life, instead of the other way around, many things can happen, such as:

• Depression
• Anger
• Stress
• Health Issues
• Arguments
• Problems At Work
• Lack of Concentration
• Sleeplessness

Debt consolidation allows you to focus more on your life than your debt.

Reason to Consolidate Your Debt #3 – Improve Your Life
When you consolidate your debt, you are taking the necessary steps to improve your life overall. You will find that your health is better, your relationship are better, you feel better, and best of all, your credit starts to improve, and more doors will open for you. When you are making an effort to get yourself out of debt, more people are willing to give you a chance. Therefore, you may be able to finally purchase that home you have been wanting or even find a better place to live, within your means of course.

Reason to Consolidate Your Debt #4 – One Payment
Perhaps the reason debt is so stressful and hard to manage is because of the various different payments that you must make each month. These payments are generally different dollar amounts, due on different days, and this alone can be enough to throw you for a loop. With debt consolidation, you have the opportunity to combine all of your payments into one easy to manage, easy to remember, and affordable payment.

One payment is so much easier to handle each month, than many payments. You will find that when you start making these payments on time, every month, life just because easier and more importantly stress-free.

Reason to Consolidate Your Debt #5 – Learn From Your Mistakes
Many debt consolidation programs offer a variety of other services as well, such as debt counseling, budgeting, and financial management. Once you have consolidated, it may be a wise decision to take advantage of these other services; they are typically free. You can then start on the road to a new, debt free, and financially stable lifestyle.

We all make mistakes, learning from them and knowing how to manage your finances properly, is the best way to ensure that you never become submersed in debt again. Again, debt is a part of every day life, knowing how to manage it and living within your means can be one very positive benefit of debt consolidation.

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8 Ways In Which Debt Consolidation Will Steer You Away From Bankruptcy

Life is strange because as money flows in it quickly flows out. And in juggling finances along with what seem to be great enticements to spend taking a loan, many US citizens find themselves in the sad predicament of bankruptcy.

Intelligent planning and prudent living are ideal but n case there are problems you need not despair there are ways in which you can consolidate debt and steer clear of bankruptcy.

1. There are “non profit consumer credit counseling societies” that help people plan their debt consolidation steps. Experts who work here will help plan a way out of debt and address issues like waiver of late fees and lowered interest rates. They show people how to deal with creditors and plan their finances.
2. Take a home equity loan and club all outstanding debts together in one loan. Of course for this you need to own property against which you can borrow. The financial institution or bank will require your home or property as collateral. In this case you must negotiate for the optimal monthly payments. Be sure to do a comparative study and find the lowest rate. Use sites like Bankrate.com’s home equity search engine.
3. Think personal loan. Is there a family member or friend who will trust you and loan you money to tide over the financial crunch. In this case since personal relationships are involved it is important to ensure that you put everything in writing and never take a personal loan for granted. Be sure to pay it back first.
4. Life Insurance policies are another source of funds. You can opt to pay it back or have the loan or withdrawal amount adjusted against the maturity value of the policy. The interests on insurance policy loans are often lower than credit card interest rates.
5. If you have put in long years of service then consider using a loan from your retirement fund to slip away from debt. This will help lower monthly payments and quicken the debt repayment process.
6. Many credit unions lend money and the interest rate is considerably lower and all you need to do to qualify for a loan is to be a member and pay annual fees. Credit unions lend members money for weddings, home loans, illnesses, and other emergencies. Most large organizations have a credit union in place.
7. Consider transferring credit card balances to cards that are offering 0% or low interest rates for limited periods. This is useful only if you can pay off the transferred amounts before the offer period ends.
8. Consider selling assets and settling all debts. Sometimes for peace of mind it is the easiest thing to do. But this step should only be considered when all others fail.

Debt causes illnesses, break up of families, fights, and unhappiness. It is in many ways the demon of the modern world. To stay away from debt you need to learn about handling finances from a young age. And, understand that “nothing in life is for free.” Know what the hidden facets of attractive loans and credit cards are. Read in between lines in advertisements promoting dream lifestyles. Plan your finances, the key is to set aside at least 15-25 percent of earnings for emergencies and budget how the rest of the income is to be spent.

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Understanding Consumer Debt Consolidation

If you are facing what seems to be an impossible financial situation due to staggering credit card debt, it may be time to get some help. One of the first options you should consider is a company that specializes in consumer debt consolidation. You will be able to consolidate almost all your unsecured debt so that when you visit the mailbox you will no longer have dozens of statements stamped "Past Due" or "Open Immediately".

How to Destroy Your Debts by Samuel Blankson Contains the technique for clearing your mortgage within the next 7 years amongst many others. If you read and apply this book, you will clear your debts and start living life without the burden of loans, mortgages or bailiffs.

Having an enormous amount of debt can be very stressful. In fact many marriages and relationships end over financial reasons. Contacting a consumer debt consolidation specialist will help get the financial burdens you are carrying reduced quickly and using this option instead of declaring bankruptcy is always the best the way to go, if at all possible.

Who Can Benefit From Consumer Debt Consolidation Help?
Not every consumer will qualify for debt consolidation help. When you are calling for information, you need to have all your financial information on hand. For example, you need to have the most recent statement from every credit card that you owe money to. You will also need to provide information on your other debt like car loans, or mortgages. You will also need the last two or three paycheck stubs for each person listed on these debts so they can get a good idea of how much income is coming into the home.

If you have only $2000-$5000 of unsecured debt you will not qualify for help in the form of debt consolidation. If fact they may refer you to a credit counseling organization to help you learn how to manage your money properly. If however, you have anywhere from $10,000 and above in unsecured debt plus a mortgage payment, a car loan and you are getting to that 30 days late area, you can definitely benefit from consumer debt consolidation advice.

Do I Qualify for Consumer Debt Consolidation Help?
Most companies require that you can show steady proof of employment before they will help you. You must have a substantial amount of unsecured debt. Some examples of unsecured debt are major credit cards, like Visa or MasterCard, gas cards, hospital bills, department credit cards, old utility bills, and outstanding repossession loans. Debts that will not qualify for consolidation are secured loans like your home mortgage, car loans, or boat loans. This type of debt is secured by collateral so it does not qualify.

What Can Debt Consolidation Due For Me?
Once you have spoken to a consumer debt consolidation specialist and have been approved, what they will do is work with you and get you one larger loan. They will use this loan to pay off all the creditors that you owe money too. When you are accepted into this payment policy almost every one of your creditors will require you to close your account. This keeps you from running up more debt as you are trying to fix the original problem.

Once you have your financial situation under control, you will see how much stress all those bills and late fees added to your life. You will no longer be a slave to debt, and will hopefully have learned how much more stress-free it is to live without the burden of high debt.

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Understanding Credit & Debt Consolidation

Debt consolidation involves transferring the balances from multiple accounts with relatively high interest rates to one account with lower interest. A debt consolidation loan does not reduce debt so much as restructure it in beneficial ways.

Debts are either secured or unsecured. Secured debts are tied to a tangible asset like a car for a car loan or a house for a mortgage. If a borrower stops making payments, lenders can repossess the car or foreclose on the house. Unsecured debts are not tied to an asset. The most common types include credit cards, medical bills and signature loans.

Debt and Credit
Most people get into debt difficulties because credit is easy to get and hard to control. Here are some warning signs that debt may be getting out of hand:

• you can only make the minimum payments on your loans and other debts each month.
• you apply for new credit cards to pay off old ones, thus rotating, but not retiring, your debt.
• you are near the limit on all your cards and accounts.
• you are being denied new loans because of your bad credit history.
• you have had to resort to bad credit financing.

The rule of thumb when using credit is known as the 20/10 Rule: Don’t borrow more than 20% of your annual net income and don’t let your loan monthly payments get higher than 10% of your monthly net income. For example, if you take home $4,000 a month, your total payments on credit debt should be no higher than $400 (excluding your mortgage and second mortgage).

Learn more about other steps you can take, in addition to debt consolidation by visiting Bad Credit Second Mortgage Now

There, you can also get a free quote on a debt consolidation loan to see if it could be a step in the right direction for you.

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Consumer Debt Consolidation

Credit cards are a common problem of consumer debt woes. The nature of credit cards makes it highly convenient to accumulate more debt than you can pay off. It is easy to continue charging more than you are paying on credit cards. Even balance transfers can help you keep up with payments temporarily when they are higher than you can afford monthly.

Eventually, something has to give. Consumer debt consolidation is one way to seek help.

Managing Debt For Dummies by John Ventura,Mary Reed Practical, commonsense guide provides straightforward strategies for coping with every kind of secured and unsecured debt, including, personal loans, car loans, mortgages, home equity loans, lines of credit, credit cards, finance company loans, and student loans.

Debt consolidation can mean several different things. One common type of consumer debt consolidation is a debt consolidation loan. These loans are not usually easy to obtain unless you have good credit. However, many who struggle with debt have had problems paying their payments on time which has hurt their credit. The lending institution will counteract the risk they acquire from giving you a loan by charging you a high interest rate. This rate may or may not be better than the original on your accounts.

Another type of consumer debt consolidation is a debt management plan. Debt management plans allow you to pay your accounts in one easy payment each month. The debt management company will then take that money and apply it to each of your accounts in the designated amounts. You benefit by having the accountability to pay off the accounts as well as in the reduction of fees on those accounts. In most cases, a debt management plan allows for the paying off of debt in five years or less. As you make each payment, you will start to see the balances reduce in a steady manner.

• Do You Need Debt Consolidation Counseling
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After you have decided to go with a debt management plan, you will want to find a company that is in good standing with the Better Business Bureau. There are many nonprofit organizations that offer this type of debt consolidation as well that you can look into. Make sure to get any questions you may have answered before you agree to the plan.

Once you are on your way to paying off your debts, you can work towards financial independence. Ask your credit or financial counselor how you can take the first step to becoming debt free.

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Moving On When You Have Debt

Many of us have gotten into debt at one time or another. Some have paid it off or some are still carrying it in forms of credit card debt, a mortgage, home equity line of credit, or student loan debt. Carrying this debt can saddle your finances and put the rest of your financial life on hold. There are many reasons why you got into debt. Perhaps you didn’t have any savings, or you lived beyond your means or an emergency came up and you weren’t prepared. Don’t let your debt be the obstacle on your path to financial freedom. Regardless of the situation you are in, you need to change your financial habits and your approach to money.

While you will focus on paying your debt down with the majority of your extra money, you can start a savings account at the same time. There are differing thoughts to this approach, but seeing a savings account grow can truly install a sense of financial hope and motivate you to remain on a financially healthy path. At this time, recall why you got into debt in the first place. One reason might have been that an unexpected expense arose and you weren’t prepared. Having a savings account could have rescued you in that situation.

Making the savings account automatic will help you get back on the path to financial freedom without even thinking about it! Setup a savings account that is linked to your checking account and have the money automatically deducted every month. You will be earning interest in your sleep. To figure out how much you should be saving, come up with a total dollar amount of extra money that you have to pay down debt. For example, if that amount is $500 per month, then you could take $25 or $50 and use it for savings. Most of your extra cash flow will still be used to pay down your debt.

Consolidating your debt to one or two places will make this process much easier. You should also have a debt repayment plan. The practical goal is to pay down your debt as fast as possible. However, for this to happen you need to change how you think about your money. Having a savings account can be instrumental in motivating you to reach this goal.

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A Closer Look At The Differences Between Debt Reduction and Credit Card Consolidation

If you have experienced a loss of job or an injury it is very easy to become over loaded in debt. This is something that happens to people everyday. They get hurt, get laid off, or go through a divorce and end up using credit cards to make up for the cash they don't have and end up in debt that they find hard to get out of. Using credit cards like they were cash is not a wise solution and with the high interest rates they charge you will find it difficult to get them paid back. If you have found yourself in this situation then this article will give you some help on getting out, if you aren't there yet, maybe it will prevent it from happening to you.

As I said above it is never a good idea to use credit cards to get through tough times or even as your own form of debt reduction. The high rates will just take you deeper into the abyss of debt and make it harder for you to get out. For most people that file bankruptcy or looking for help with debt consolidation it is credit card debt that caused the problem.

If you are in a program of debt reduction, self imposed or otherwise, you need to concentrate on figuring out ways to lower your cash outflow and the amount of bills you have to pay. Credit cards will do the exact opposite; they will increase your bills and make it even harder.

Here's an example that we can look at: If a family has bills including their mortgage, insurance, car notes, and other miscellaneous expenses that adds up to over $2300 per month is there any possible way to reduce this? There are a number of ways that one could look into to accomplish this, one way is to look into a mortgage refinance that will help us refinance the home mortgage and bring the other bills into it for one low payment. One of the advantages of doing this is that the mortgage loans are typically lower interest and in many cases may be written off on taxes.

If you take the time to look around you will find loans that will give you cash back, loans that you can take out against the equity in your home, loans like the one above that will allow you to combine everything into one low payment, and many other options.

Just about any debt you owe can be rolled into one payment or at least combined and reduced but anything like utilities, cable, cell phone bills and the like will have to be paid separately. You may be surprised at how much you will be able to reduce your monthly payments with a debt consolidation loan.

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Credit Card Debt Negotiation

Struggling with your credit card debts can leave you tired, frustrated and deeper in debt than you were to start with. If you have admitted to yourself that you are in debt then you are ready to start to move yourself into a more beneficial situation. This is where credit card debt negotiation comes into play.

The first thing you need to do is contact your credit card company, if you have been struggling with payments then they will probably be contacting you on a regular basis but do not wait for them to call you get on the phone and talk to them first. Many people are worried that when they call they will be told that there is no hope. This is not true it is within the credit companies best interest to help you out of debt and put you in a better financial situation, that way they can try and get you to spend more on your card (Which you are not going to do once you are out of debt are you?).

When you call them tell them your situation and ask them what they can do for you, if they say nothing then you need to move onto the next stage which is to get credit counseling. A credit counselor will assist you in your credit card debt negotiation. They will help you create a budget as well as work with creditors to reduce your monthly payments, finance charges and late fees if you have accrued any.

A credit counselor will not only look at your credit card debt negotiation but also allow you to pay them one simple payment for them to distribute between your creditors. There is normally a one off fee but in many cases this is waived.

Do not continue to struggle on with your debts you will only end up deeper in than you are right now, your debts an also have an effect on your health and relationships. Credit card debt negotiation is something that you need to do in order to live a more care free life.

Talk Your Way Out of Credit Card Debt!: Phone Calls to Banks That Saved More Than $43,000 in Interest Charges and Fees by Scott Bilker Learning how to talk your way out of credit card debt is the quickest, easiest, and most efficient way to start saving money!

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Don’t Get Into Debt This Christmas

Christmas can be an enormous strain on the family budget. It’s not just presents that you have to worry about – which itself can be a nightmare as you battle with pressure from the kids for the latest must-have toys and gadgets – but also food, drink and entertainment. It’s therefore not surprising that Christmas is the time of year when we notch up the most debt – although most of us really start to feel the pinch in the start of the new year when we struggle to keep up with household bills while continuing to pay for our Christmas indulgence. Here are some tips on how to save money and avoid debt over the festive season.

First and foremost, remember that your family and friends will be understanding if you are on a tight budget over Christmas and can’t afford to be very extravagant. If anyone is expecting large gifts, manage their expectations, especially kids. Let them know that Santa can’t bring everything that they want – but that he’ll bring them very good gifts all the same if they’ve been well behaved.

Don’t forget your normal budget – ensure that regular household bills are paid as usual, such as council tax, utility bills, rent etc. Remember that your priority is to keep a roof over your head.

Work out how much money you have left to spare for Christmas after your normal budget and set your Christmas budget. Save small amounts regularly throughout the year. You could even open up a bank account specifically for Christmas savings to ensure that it stays separate from the rest of your finances and to avoid the temptation to spend it.

Try to spread your purchases throughout the year, even as far back as January – you can get great bargains in the January sales! Leaving it to the last minute means you’re more likely to panic and spend more money – or put more on your credit card.

Don’t be tempted by credit offers in shops – this is just storing up trouble for the future. If you can’t afford it, don’t buy it. Also beware of cheap deals and rates before Christmas – chances are the APR will be hiked up in the new year.

If you have to get a loan or a credit card, shop around for the best deal as you would at any other time of year, and leave yourself plenty of time so that you don’t sign up for anything in a panic at the last minute.

Make deals with family or friends not to give each other presents, or agree on a fixed maximum price that you will spend on each other. Do a present exchange – a secret Santa or a lucky dip – with groups of friends or colleagues so that everyone in the group buys just one
gift. It can be fun getting together to do the exchange. In a secret Santa, everyone’s names are put in a hat and each person pulls out a name for whom they must secretly buy a present. It’s quite good as you know who you’re buying for so you can get them something you think they’ll like. With a lucky dip, everyone simply buys a present that would be suitable for anyone, and they all get put into a sack and pulled out one by one at random.

If you can’t afford to do rounds on your Christmas night out with work colleagues or friends, just ask if you can pay for your own drinks – they won’t be offended. An even cheaper option is to go tee-total and drive!

If you’re entertaining others at Christmas, you don’t need buy and prepare all the food and drink yourself – you could agree to share the cost with your guests. Someone could organize the starter, someone else the dessert, another person could bring the cheese and biscuits and yet another could supply the drinks. In this way it can be a nice surprise for everyone to see what everyone else has brought and you’re sure to have plenty of variety!

Look out for postage and packaging costs if you’re doing your Christmas shopping online – sometimes this can add a lot to the price. Try to find a site that sells what you want with the cheapest postage costs, or try to plan your purchases and buy them all in the one order so that you’re only charged once for delivery. Make your own Christmas cards or perhaps even your own presents if you’re the creative type – the personal touch is often nicer anyway. You could make up your own gift hamper, bake your own cakes or chocolates or buy a photo frame and fill it with a collection of special memories for someone.

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Do You Have to Pay Back the Debt?

The most widely held misconception about bankruptcy is that it’s the debtor’s version of the “get out of jail free” card in Monopoly. While most people know that bankruptcy affects your credit for 7 to 10 years, very few people know that it’s possible that you’ll have to pay back the debt anyway, even if you file a Chapter 7 “straight” bankruptcy. The formal definition of bankruptcy is “a proceeding in federal court in which an insolvent debtor’s assets are liquidated and the debtor is relieved of further liability.” On the other hand, the commonplace definition of bankruptcy is probably “the process of completely wiping out your debts for free.” In the majority of cases, the latter definition may be appropriate, but in some scenarios, it’s likely that even with bankruptcy, you’ll still have to pay back at least a portion of the debt.

So when is it likely that you’ll have to pay back your debts? Here are the most common scenarios when you’ll get all the negatives of filing bankruptcy (severe credit impact for 7 to 10 years), but none of the benefits (you’ll still have to pay back at least part of the debt):

• You make more than the average person in your state. If this is the case, then it’s likely that you’ll be forced into a Chapter 13 bankruptcy plan. In a Chapter 13 bankruptcy, the court orders that you pay all your disposable income to a court appointed trustee, who in turn disburses payments to your creditors. Keep in mind that the court determines your disposable income by national and county statistics on average necessary expenses, not what you’re paying. So just because you’re paying a lot for a car doesn’t mean the court will approve it. There are numerous cases when a judge ordered families to stop sending their children to private schools so they can have more money to pay back their creditors. In Illinois, here are the latest statistics on the Illinois median income by size of household:

                Illinois                      Estimate
           1-person families              41,650
           2-person families              52,891
           3-person families              62,176
           4-person families              72,368

• You have assets. If you own a home or car, then it’s possible that the bankruptcy court will force you to sell them to generate sufficient cash to pay back your creditors. Chances are if have a good chunk of change invested (unless it’s in a tax-exempt account like an IRA) then you’ll also be forced to liquidate it. If you have a second home or another vehicle (assuming you own both completely), then you’re really out of luck. Fortunately, there are some safeguards to protect consumers from bankruptcy hell. In Illinois, every resident is entitled to at least $7,500 of the value of their home, $1200 of the value of their vehicle, and $2,000 for anything that they want (known as the wildcard exemption). Also, these values double if you’re married (assuming the property is in both of your names).
  
  What does this actually mean? Consider the following example.
  
  Let’s say you have a house that’s worth $250,000, and it’s in both yours and your wife’s name. You still owe about $200,000 on your mortgage, and you decided to file Chapter 7 bankruptcy. In this example, you would be forced to sell your home, and with the proceeds you would pay back the mortgage company what you owe on the outstanding balance of the loan ($200,000), you’d pay yourself the Illinois real estate exemption ($15,000), and then you’d pay back your other creditors whatever was left ($250K-200K-15K=$35,000).
  
  Let say your house was only worth $215,000, but everything else in the above example remained the same. In this case, you wouldn’t be forced to sell your home because the proceeds from the sale wouldn’t amount to anything after you paid back the mortgage company and then paid back yourself the Illinois real estate exemption.
• The creditors can prove that you were fraudulent and never had any intention of paying them back.

For the majority of us it means that unless a) you don’t have a lot of equity in any of your property, b) you don’t have any investments like stocks, real estate, ect., c) you don’t care about having to sell anything mentioned in points a and b, or d) you don’t care about having to give up your disposable for 5 years in a Chapter 13, then bankruptcy may not be your best option.

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Do You Need Debt Consolidation Counseling?

In average American receives his first credit card at the age of 18 and statistic shows that every American household is holding about $10,000 in total debts. Credit cards are the major contributors to these debts seeing that so many people are seeking for credit card debt consolidation. In order to avoid yourself to be one of the contributor to the statistic, that's why you need a debt consolidation counseling to get more understanding on your debts and your available options in handling your debt issues.

Many people who are in debt will think of debt consolidation as their debt solutions, but unfortunately, even the best debt consolidation program can't be of any help if you keep falling into debt continuously. That's why debt consolidation counseling would be helpful to educate you on the weak points of your financial handling and prevent you from potential debt trap. It will keep you alert on any potential financial crisis and get you more prepared for future so that you continue stay out of debt.

During the debt consolidation counseling, the debt counselor will get to understand your current financial situation. He will ask you a lot of personal questions like the current state of your debt, how far you are behind on your payment, your incomes and spending budget for each month. It is very important that you let him know the truth of your debt situation so that he can give you the necessary advices based on your financial facts.

The debt counselor will advise and point out your financial weak points, create a budget and help you to help yourself to learn how to live on your income. Through the debt consolidation counseling, you will be able to learn some important financial planning skills and how to break your bad spending habits. You will learn up how you can consolidate your high interest credit card debts with a consolidation loan that has lower interest rate and end up with only one monthly payment. In order to be able to effectively resolve your debt issue, you need to put into a plan that is easy to manage so that you are on track in making payments; combining all your debts into one is a good decision. Often counselors also act as intermediaries between you and your creditors, getting easier repayment terms for you.

There are many companies offers debt consolidation counseling services and often this service is free. You will only be charged if you decide to enroll into any of their debt consolidation program. So, you can make use of this free service to have better understanding on your debts.

In Summary
With debt consolidation counseling, you can be saved from the trauma of the crisis that you are undergoing. It allows you to weigh all the pros and cons of your situation well and with professional help. Hence, if you have credit card debt need debt consolidation counseling and start to handle your debts as early as possible before the situation goes worst.

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Get Tailor-Made Consolidation Plans Through Debt Consolidation Counseling
Is Debt Consolidation A Good Idea-

Credit Hell : How to Dig Out of Debt by Howard S. Dvorkin If you want to dig yourself out of debt and stay out of debt in the future, pick up Credit Hell and discover the best way to regain control of your financial life.

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Easing Your Debt Worries & Get You Out of Debt

Throwing money at you're debt is like going on a crash diet. If you don't plan well you may end up back ware you were or even in more debt. Here are some good questions to ask you're self before you start planning.

• How many credit card accounts do you have?
• What is the interest rate on each card?
• Which one do you owe the most?
• How long has the account been open?

The next step is to figure out a manageable plain that will get you out of debt. You may want to look into some of the financial software packages such as Microsoft money or Quicken.

You should pay off the card with highest interest rate first, or a debts that are delinquent or about to be written off. After you have paid off the one with the most interest then go to the next highest, and so on. If you want to have the good feeling that comes from success, pay off a card with a low balance. The good feeling you get from getting out form one debt may just give you the motivation to take care of the rest of you debt.

Reduce the amount of interest you pay.
Most credit cards have an interest rate of 16% to 20%. This is where you're money in going.- You can negotiate with your creditors. If you have had a credit card for a couple of years call the company and ask for a lower rate. They may give it to you just for being a loyal customer. You may be able to bring down you're interest rate to 11% or 12%. Sometimes it's just as easy as asking. If the company is unwilling to lower you're interest rate today ask them at what point they will lower it. You maybe able to work that goal into you're plan.

Consolidate debt
Once you know what the interest rate is and how much you owe for each of your cards, and you have gotten the best rate you can, the Next step to consider is combining your debts. You should try to place your debt onto the cards with the lowest interest rates. This can save you a lot of money. All you have to do is call the credit card company and ask how to transfer funds. Be carefully of offers to transfer balances at low rates to new cards. In most cases the low rate only lasts for a short period of time and then you back to where you started from.

Always pay more than the minimum
The credit card companies are not being nice by letting you pay a small minimum payment. The minimum payment is designed to extend your payments for as long as possible so they can make the maximum amount of money from you. If you only pay the minimum payment you maybe paying for those new shoes years after they have worn out.

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Is Debt Consolidation A Good Idea?

If you have lots of debt, consolidation may save you time and money. Depending on your financial situation, there may be a solution that's right for you.

When you're struggling with lots of debt, debt consolidation may be an attractive solution. This term refers to combining your debts into one, and making one monthly payment to one creditor instead of making multiple payments to many creditors. You might even get out of debt faster and save money along the way. Debt consolidation comes in several forms, including credit counseling, balance transfers, and debt consolidation loans, so review your options carefully before making a decision.

Credit Counseling
When you're experiencing financial distress, these companies, also referred to as debt management companies, work with your creditors to restructure your unsecured debt. Through a debt relief plan, you make one monthly payment to them, and they pay your creditors. Companies that offer credit counseling do not loan you money. Instead, they negotiate with your current creditors to get you debt relief. Debt relief plans offer many benefits that may help you get a handle on your unsecured debts, such as:

• Lowered monthly payments
• Reduced or eliminated interest rates
• Eliminated late fees
• Accounts brought current (re-aging your account)

Balance Transfers
Transferring debt from a higher interest rate credit card to one with a lower rate can save you money. If you have a credit card with a low interest rate, you might consider transferring the balance from a high-rate credit card to the lower rate one. Or, you might apply for a new credit card with a lower interest rate. Be careful about introductory rates, also called teaser rates. Make sure you know what rate will be in effect after the first couple of months. If it's too high, this option may not be your best choice.

More About Teaser Interest Rates
Read the small print about credit card teaser rates. Teaser rates are often used to entice you to transfer a balance. Be sure to consider the following before you fill out the application:

• Introductory rates typically last a short period of time
  • While some may last up to a year, it's not uncommon for the low introductory rate to expire after three or six months. After the introductory period is over, the interest rate will increase, sometimes to a very high rate.
• The credit limit may not be high enough
  • Companies that offer balance transfers may not give you enough credit to transfer all of your debt. You'll be paying part of your debt at the original higher interest rate and part of it at the lower introductory rate.
• There may be a balance transfer fee
  • Be sure to find out if there is a balance transfer fee and how much it is.

Debt Consolidation Loan
You can apply for a debt consolidation loan at most financial institutions, like banks, credit unions, and finance companies. There are two types of loans:

• Unsecured - no collateral is required
• Secured - collateral is required

Unsecured loans are commonly referred to as personal or signature loans. Examples of a secured loan include a home equity loan or a second mortgage since your home is used as collateral.

Is a Debt Consolidation Loan for You?
When you consolidate your existing debt and pay it off with a debt consolidation loan, you are trading several debts for a single debt. Even though you still have the same amount of debt, you may find this beneficial if you:

• Get a loan with a lower interest rate than the rate(s) you are paying on your existing debts
  • This could save you money during the life of the loan depending on the term and amount of monthly payment. Don't forget to do your homework when investigating interest rates and monthly payments. A small difference can impact you greatly. For example:

                                                    Credit Card               Loan
Balance                                          $5,000.00              $5,000.00
Minimum Monthly Payment              $100.00                $140.00
Annual Percentage Rate (APR)         18%                     15%

Payoff Timeframe                   39 Years and 4 Months    4 Years

Total Amount Paid                         $18,396.67            $6,664.59

Total Interest Paid                         $13,393.67           $11,664.59

In this example, switching from a revolving credit card debt with 18% interest to an installment loan with 15% interest, and only increasing your monthly payment by $40, saves you over $12,000 in interest payments.

• Close your credit card accounts
  • Paying off multiple credit cards with a debt consolidation loan may be a good idea, but be careful about racking up more debt on the open accounts. Think about keeping one account open for an emergency and closing the others. Not only will that ensure you're not tempted to charge additional items, it'll also look good to future lenders who review your credit report.

Be Careful with Finance Companies
If you're having difficulty getting a loan from a bank or a credit union because you have too much debt or a negative credit history, you may be able to get a loan from a finance company. Be careful if you decide to use finance companies. While finance companies typically make it easier for you to get a loan, there are things you should know, including:

• Interest rates are often high
  • Higher interest rates typically mean a higher amount paid over the course of the loan.
• Loan term may be lengthy
  • The longer length of the loan results in lower monthly payments, but it causes you to pay more interest.
• Other fees may be present
  • It's not uncommon for finance companies to charge application or processing fees.
• Future creditors may not look favorably on your credit profile
  • Even if your credit rating is good, potential creditors may perceive you as a bad risk if they see a finance company among your listed creditors. Since most people use finance companies if they don't qualify for a loan from a bank or a credit union, creditors may think you've had financial problems in the past.

If you're thinking about consolidating your debt, consider the pros and cons for your situation. Remember to shop carefully and compare costs. The U.S. Federal Trade Commission has several articles for consumers in debt, including Knee Deep in Debt and For People on Debt Management Plans: A Must-Do List.

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