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Debt Help - Debt Consolidation Loans Versus Credit Counseling

Debt consolidation loans are a do-it-yourself process, whereas credit counseling helps you to make financial decisions. If you already have a financial plan, then you probably don’t need the services of a credit counselor. However, if you have questions or need help with a budget, a credit counselor can offer valuable help.

What Debt Consolidation Loans Can Do For You

Debt consolidation loans can reduce the interest rate you are paying on unsecured debt, like credit cards, and lower your monthly payments. You can choose to use an equity loan with its tax deductible interest or a personal loan. Many lenders offer competitive rates, which you can find by researching companies online.

A loan gives you more control over interest rates and payment schedules than with other options. Not only can you get low rates, but you can decide to take longer than five years to pay back your principal. By taking longer, your payments are lower, giving you financial breathing room.

However, a debt consolidation loan should be part of a larger financial plan that includes budget planning and long term financial goals. If you don’t have these things in place, you may find yourself in deeper financial trouble by taking out a loan.

What Credit Counseling Can Do For You

Credit counseling provides confidential financial planning for a low fee. In a non-judgmental atmosphere, a credit counselor can help you define your financial goals and plot a course to get there. They may suggest a debt consolidation loan, debt consolidation program, or other financial options. They will educate you about the pros and cons of each to help you make a decision.

Credit counselors are familiar with all types of financial programs, so they may point you to little known sources for help. They may also help you realize immediate savings by helping you to reduce expenses or lower interest rates on some of your bills.

Credit counseling is really an investment in your financial future. You get a quick crash course on your finances with practical answers. By getting expert help, you can save your credit, saving you thousands.

To view our list of recommended debt consolidation companies online, visit
this page: Recommended Sources for Debt Consolidation Online.

Carrie Reeder is the owner of ABC Loan
Guide, an informational website about various types of loans.

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The Hazards of Seeking Debt Consolidation Online

As the number of people online continues to grow, more and more people are turning to the internet as their primary source of information. When it comes to private matters such as personal finance, people are even more likely to seek the anonymity of the web. As a result, millions of consumers who are in debt turn to the internet for answers: it is estimated that the term “debt consolidation” is searched for nearly 3,000 times a day. Unfortunately, many consumers are unaware of the dangers of searching the web for debt help or debt consolidation.

The large amount of people searching for financial help online has made debt consolidation websites a booming business. The large market has opened the door for misleading business practices. Many sites claim to offer a variety of services such as debt consolidation, consumer credit counseling, debt settlement, credit repair, or refinancing and consolidation loans. Often, the site promises a free debt consolidation quote for consumers who enter their contact information. Most consumers believe they will be contacted by an employee of the company who owns the website. However, more often than not, the consumer’s contact information has just been entered into a lead capture page, usually operated by a marketing firm. This marketing firm then sells this information, or “lead,” to any company that is willing to pay for it! The customer has no way of knowing that this information is sent to a legitimate business.

When the average consumer gets online to look for debt help, the majority of the time he will turn to a search engine. As a result, the first few websites that are returned for a particular search term get the majority of the web traffic. While many search engines constantly try to make search terms relevant and immune to manipulation, many companies are still able to pay their way to a good ranking. Many websites, particularly the “lead capture pages,” are able to pay for links and other “optimization” techniques that translate into high search engine placement. Because many legitimate businesses are oblivious about the impact of search engine rankings, there is a high probability that consumers searching for debt consolidation online will fall victim to some sort of misrepresentation.

Daniel Johnson is an accredited credit counselor and contributor to http://www.newcreditdebtconsolidation.com.

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Debt Consolidation Needed

The collective bank balance of the UK’s younger generation is well into the red, according to new statistics.

Figures released by financial comparison site uSwitch.com have revealed that as many as 1.8 million Britons between the age of 18 and 29 are permanently overdrawn, demonstrating the need for debt consolidation loans to help young Brits manage their finances more effectively. By taking out a debt consolidation loan, a person can put all their debts into one, more manageable, monthly repayment, reducing the likelihood that they will become overdrawn because of many different debts biting into their bank balance over the course of a month.

While six million young Britons have bank accounts which contain an optional overdraft facility, two-thirds of them regularly exercise this option because of the various financial burdens placed upon them during the course of a month. More than one in five young Brits admitted to owing over

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