Debt consolidation: The first step to recovery
It’s no secret; most people alive nowadays are struggling with debt. In many cases, that debt is exceptionally overwhelming, and they can easily feel like they are drowning in the letters that come in the mail and the daily phone calls from debt collectors. In fact, while there are many who have debt from one large source like consumer credit debt or student loan debt, the reality is that most who need debt consolidation services have accrued debts from multiple sources through the years. It seems that owing large company’s money is just a way of life in today’s world… but it doesn’t have to be. Many of these struggling citizens have looked toward debt consolidation as a means to improve their financial future, as well as both their current and future quality of life. In most cases of excessive debt, debt consolidation is the route that will be most efficient in helping a consumer manage all of their debts by using debt consolidation to improve credit while removing the looming threat of menacing bill collectors.
The first step to recovery – Make a choice!
Obviously the first step in the process of using debt consolidation as a means to a happier end is to decide which firm you will enlist to be your champion in the process. There are thousands of options for those who are dedicated to following debt consolidation plans through, but many of them are scams who are preying upon those who already have massive consumer credit debt. When choosing a debt consolidation agency, you must look out for and prefer non-profit organizations such as the Financial Counseling Association of America and the National Foundation for Credit Counseling. These agencies will be more considerate of your information and will have proven results behind them. If the debt consolidation agency seems fishy, then it probably is; don’t hesitate to find another one if you don’t feel secure. Another thing to know about debt consolidation before venturing into it is that you can use debt consolidation practices to help pay off your student loans, but not debts owed to the government such as unpaid child support or back owed taxes.
The first step to recover – Repairing Your Credit
Other than the immediacy of having your bills paid, many people find the idea of debt consolidation attractive because they need to repair their credit. While yes, technically, by partaking in debt consolidation to improve credit you will improve your credit since it is not directly reflected on your credit score, many lenders will look into the details of your credit score to find out exactly how it got the way it is when they see it, no matter how good or bad it is when they get it. If they see that you paid your creditors through a third party, it still shows a history of inconsistency, which is almost always seen as an irresponsible streak. With that being said, you should not disregard consolidation as a solution to your owed finances, as it will still help you pay the balance on them and finally be able to move on without the weight of the world on your shoulders.