Economists agree that the current recession is deeper and seems more entrenched than almost any economic downturn since the Great Depression. The recession's recovery not only has been slow, there are disagreements that any recovery is in progress. The toll on American residents and their finances has been severe, leading many to struggle for ways to manage debts that have grown bigger and bigger. Many are getting a debt consolidation quote as a possible solution. Various lending groups provide these kinds of debt consolidation loans. The federal government is deep in red ink and individual citizens are swimming in debt due to the inflated interest on many credit cards, borrowing to survive during periods of unemployment and the money spent on education to try and change career paths. Bankruptcy is one option but not always the best one and the federal bankruptcy laws were tightened in recent years. Debt consolidation may allow struggling Americans to weather the current economic crisis.
Advantages of Consolidation
Fortunately, many individuals struggling with debt are not really as bad off as they think. Their debts are potentially very manageable with just a little knowledge and advice from the right sources. Many individuals continue the same monthly bill-juggling struggle without realizing all their options, or make the wrong choices based on lack of information. One important piece of misinformation is the assumption that debt management agencies charge a fortune for their services, just adding to the debt pile without doing much to solve it. In fact, most debt management companies charge no fee for quotes and information on their debt management plans. Obtaining these quotes is quite simple-a debt consolidation online quote is just a few computer clicks away. No appointments or travel needed and the information is usually available online immediately, providing detailed information regarding programs that can start relieving your debt burden. Starting out online is also a smart move, because you can shop various companies and compare their debt management plans. You can get a good idea of what the costs and potential truly are. With some research you will find options and ideas you had not imagined before.
These debt consolidation quotes can be the first step in not only getting payments and debts in order, but can start the important task of repairing your credit rating and improving your credit worthiness. Using the right credit-debt consolidation loan to avoid bankruptcy will prevent additional adverse reports from appearing on your credit history report. This will help enormously when your finances are finally back under control. You can eventually have good credit and can make other financial moves, like replacing your rent payment with a tax-deductible mortgage payment.
Finding a Debt Consolidation Quote
The depth and breadth of the debt crisis for so many Americans has generated a growth in the number of different entities offering debt consolidation loan quotes or debt management plans. There are lenders who specialize in these loans but many other organizations have stepped in to try and help some of the desperate people they serve, such as religious organizations or other groups you may belong to. Counselors from these groups can help you learn what you are doing wrong, and show how just some smart moves can suddenly make that mountain of debt a very scalable hill. You will better understand your situation--debts versus income--and make any tough decisions necessary to ensure they balance. They can also help you find many ways to save money you might not have been aware of.
Selecting the Best Quote and Plan
There are as many debt consolidation plans as there are companies. There are varied plans offered by each company, providing a wide selection of plans to choose from. This selection can be bewildering, but if you look carefully and consider a few important features of each plan you can choose the right one for you.
Interest Rate Options
The only debt consolidation loan or plan worth considering is one that significantly reduces the interest rate currently being charged on debts. Unless the interest rate is lower, reducing payments and paying off debts faster are problematic. You also need to find out not only exactly what the debt consolidation payment will be but the length of the payment terms--the monthly payment times the number of payments gives a true picture of the total amount of debt being created in the consolidation loan. The company may have unexpected fees that impact the total amount of the debt, the size of the payment or the length of the repayment period.
One of the greatest advantages of using debt consolidation quote providers is their experience dealing with your creditors. Many debtors do not realize how valuable consolidation quote companies can be when dealing with creditors. They usually have developed working relationships with lenders and can help with getting them to agree to lower interest rates, so that the debt can be paid off more quickly at a lower monthly payment.
One good way to judge the professionalism and efficiency of a company is how they treat you as a potential customer. If they provide top-notch customer service, are courteous and prompt in all their dealings, and provide solid answers to your questions, then that probably is how they run their entire operation.