The world economy remains in horrible condition and people everywhere are falling behind in their debts.
For those that are unable to meet their monthly credit card bills, there are companies that would like nothing more than to take advantage of them during a time of weakness.
If you are considering debt consolidation or a debt management service, here are some facts you should know:
• Debt consolidation loans can be misleading–when banks advertise their rates, they are often only putting out the best rates they have available. It is up to you to look over the paperwork and fine print to ensure you are getting everything you think you are getting. Otherwise, you could end up with a higher interest and fees than you were paying to the credit card companies.
• Credit counseling it NOT debt management-individuals who go to credit counselors are being educated on how to pay off their debt, it is not a service to do it for them. Many government agencies offer this service for free, so there is no need to pay for it.
• Debt management services can do more harm than good–in many cases, these companies charge outrageous fees and do nothing that you could not do on your own. They lure you in with promises of lower interest rates and quick payments, all the while, your credit rating continues to plummet.
If you are already in default, there are programs that will help, but you have to be very careful. It is quite easy to fall into a trap.
Talk to counselors and research the services online to see which ones are the real deal and which ones are merely scams.
There is no quick fix to get out of debt. It is going to take time and patience, but as long as you continue to make your payments and have no further delinquencies, your credit rating will improve.
