What is the Difference between Debt Consolidation and Debt Management ?

You may have heard a lot about debt consolidation and management and are not sure what plan with what company would be right for you in your situation. It may be difficult to determine which path to take when you are seeking to gain financial independence.

Debt consolidation loans usually involves an outright loan that allows you to pay off many of your other debts. It requires a very good credit score and sufficient income. Debt consolidation rarely is an option for paying off substantial amounts of debt unless you can secure the loan with your home or other valuable property.

One particularly helpful type of debt consolidation and management is called a debt management plan. These plans allow you to pay the debt management company in one consolidated payment each month. This payment then will be distributed in predetermined amounts between your creditors. Unlike some programs, you will still keep your original accounts with the creditors. However, you will be paying them through the debt management plan. Each month you will be able to see how your one payment is allowing you to steadily pay down your debt.

The debt management plan is a helpful type of debt consolidation because the debt management company can arrange for you to gain a reduction in interest and fees on your accounts. This allows you more of your money to be applied to the debt itself. Through this process, you should be able to pay off your debt in a much more reasonable amount of time.

You will want to make sure that you work with a company that can handle all of your unsecured debt. Also, if you find one that is nonprofit you will often pay less in fees. No matter what company you work with, you should double check that you will in fact be saving money by following the plan rather than by paying off your debt on your own.

When you are tired of seeing your credit card bills stay stagnant or rise, seek debt consolidation and management plans to gain a way out. With a little help, you will be back to financial security.
Ronnica Rothe graduated Magna Cum Laude from the University of Oklahoma. She is currently enrolled at Southeastern Seminary in Wake Forest, NC.

She is a regular contributor to educational information disseminated through Personal Financial Network. Related information can be found at Debt Management and Consolidation.
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Debt Consolidation Loans - Multiple Debts No More Liability

Today to accomplish financial requirements, borrower usually comes across various loans like credit cards, home equity lines of credit, store cards, overdrafts, payday cash advances etc. which are tailored in an attractive way. But mismanagement in the repayments usually traps the borrower in multiple debts. In this case debt consolidation loans become a source to assist yourself from your debts.

Debt consolidation loans help the borrower club or merge his multiple debts into one single manageable loan. Borrower can get his debt consolidate from the new lender or on of the existing lender. Furthermore the new lender is responsible for paying off the debts to multiple lenders.

Debt consolidation loans help the borrower to deal with single debt at comparatively lower monthly installment. Lower interest rate on the debt consolidation loan helps the borrower to save a lot on cash which he can use for some other need.

Moreover debt consolidation loans help the borrower to escape from the dunning call of the multiple lenders. As new lender satisfy the creditors with the agreed payment.
Debt Consolidation loans significantly benefits those who have very high interest rates, have more credit card bills then they can keep up with, or would just like the simplicity of one payment to one company for all of their unsecured debt.

One caveat of the debt consolidation loan is that borrower should not use any of the cards or debts which are mentioned in the debt consolidation program.

Debt consolidation loans are easily accessible from prominent banks, financial institution, leading lenders, and through the online. Borrower can opt for any one depending upon the best quote.
Debt consolidation loans can be categorized as secured and unsecured. In the secured debt consolidation loans, borrower is required to place the collateral against the loaned amount. But borrower with smaller debts finds unsecured debt consolidation loan better as it requires no collateral against the amount. With the debt consolidation loans borrower enjoys greater finance at lower rate for flexible tenure.

Moreover, borrowers who don’t consider debt consolidation loans to meet their multiple debts may find themselves marginalized in an economic structure.

Writing for loans for Elaine Owen is not just about giving advice to people but offering sensible ways to revamp their financial condition in a reconstructive way. To find debt consolidation loan,credit Counselling,debt management,credit card debts,avoid bankruptcy, visit http://www.e-debt-consolidation.co.uk

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