This particular video provides us with information on debt consolidation. Debt consolidation is something we use to help get us out of debt, when we’re so far in debt with so many creditors that it becomes difficult to eliminate debt through ordinary channels.
One way people have found to get out of debt really fast, is to pay one company to take over all their existing debts. This is essentially what debt consolidation is…quite literally consolidating all of your debts into one debt. This makes your debt easier to manage, and can reflect positively on your credit report, because all of your existing delinquincies will show as resolved.
Obviously there is no magic bullet to get us out of debt, but debt consolidation can be a good start.
Sounds like a contradiction doesn’t it? How can anyone get out of debt with a company that doesn’t get a profit? What do they get out of it? It’s tricky, but there are companies out there that practice what they preach. Debt consolidation companies get the clients out of debt by combining all the bills into one bill. They talk to the various companies you owe money to and bargain them into a lower rate. That rate becomes one bill.
They also offer credit counseling and talk with you about the most effective way to get out of debt. Let’s be honest with ourselves, there is no magic pill or formula to get out of debt instantly. If anyone says that it may take months, it’s a strong possibility that it may be smoke and mirrors and they want to just do business with you for your money.
Some non-profit companies are non-profit in name only. Some use the title to get out of loopholes in term of paying taxes, etc. Others that are actually legit may ask for an initial set-up fee with monthly fees. Some say they have a voluntary fee but make you pay a full fee later on. It’s best to be wise when doing business with these individuals and companies. Always do you research!!
The Better Business Bureau is a GREAT resource to research who is reputable and who is not.
The best way to avoid mistakes is to be prepared.
Remember the 6 P’s:
Prior Planning Prevents Piss Poor Product.
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