Debt Consolidation - What's in It for You! (cont.)
Contributed by Stephanie Litaker
Debt consolidation is not debt elimination
When you decide to undertake debt consolidation, you are putting all of your debts in one place (remember the old saying about putting all your eggs in one basket? ), but with debt elimination you are actually getting rid of your debts. When you start a debt consolidation plan you will combine you debts and slowly pay them off over a period of time, which most debt consolidation services suggest takes about five years.
These services will typically be able to work with your creditors and reduce your interest rate, which will enable you to pay off your debts quicker and will save you money in the long run. Another benefit of lower interest rates on your credit card debts is lower monthly payments.
If you are interested in finding a debt consolidation service, you should be able to do so without much trouble at all since there more than enough to go around. Some of things you should look for when choosing a debt consolidation company include:
- a good reputation. If you know anyone that has used a debt consolidation service, ask them about the service they received. If not, do a search on the internet to see what you can find.
- low fees. Most services will work with you for a low application fee (generally under $50) and a very small monthly maintenance fee (generally under $10). If the charges a company you are considering does not fall under these criteria, you may want to continue your search.
