Get Personal with Your Debt Consolidation Plan

Why you should start getting personal with your debt consolidation plan

Starting your personal debt consolidation plan can be a frightening process for some people. Let’s face it, if you decide to use a service to handle your debt consolidation plan, they are in charge of your money. If you don’t involve yourself in your plan, how will you know if your money is going to the right places? Are your payments being made in a timely fashion? Your personal credit history is at stake here, so it only makes sense that you should be personally involved in the consolidation process.

If you are the do-it-yourselfer type, you have no choice but to get personal with your debt consolidation plan. You’re in charge of your money and where it goes. You’ll be the one contacting your creditors if need be and negotiating for different interest rates or payment options. Keeping your plan on tract will be solely your responsibility, giving you the peace of mind that you’re in control.

How to start your personal debt consolidation plan

The first step in devising your personal debt consolidation plan is admitting that your debt is in serious trouble. When you have done this, you’ll understand the importance of ridding yourself of that debt. Next you will need to educate yourself on where your debt stands. Start by obtaining your credit report. This will show you who you owe money to and how much. You will also need to know what interest rates you are paying.

Can I Participate in a Debt Consolidation Program, If I Have Bad Credit?

If you have bad credit or a damaged credit history, you are a good candidate for a debt consolidation program. Debt consolidation will allow you to pay off all of your existing credit card loans, and other bills. This option may appear very tempting, especially if you have a bad credit history. While considering consolidating your existing debts is usually a good idea, if you have a poor credit history, you have to make sure that you make the best financial decision, and not get taken advantage of.

The Most Common Debt Consolidation Scams, Aimed at Those with Bad Credit

When it comes to avoiding debt consolidation scams, common sense rules the day. There are many companies out there that thrive on the innocence of their potential clients. For example, some companies may require to be paid in full, before providing their services; quite frankly many such companies have no intention of providing the debt consolidation service, as promised, but just want to take your money.

You should also be very wary of any debt consolidation that tells you not to contact the credit agencies yourself. One of the first actions you should take when thinking about debt consolidation is to request a copy of your credit report. This will give you an accurate starting point, and you will be able to find a loan at a rate which you can afford.


One Response to “Get Personal with Your Debt Consolidation Plan”
  1. I’m glad you mention the scam aspect of people selling debt consolidation services. It now seems as though this is a catch-all phrase to bring people in, but then some of these guys push expensive “solutions” on people who really can’t afford them.

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