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Is There Any Such Thing As Free Debt Consolidation

Free debt consolidation - yea right! The fact is, nothing in life
is free, which is exactly why you should be dubious of any
advertisements that claim to offer “free” debt consolidation. In
most instances, you can get a free quote or else a first-time
counseling session. And in most instances, the first-time
counseling session is to lure you into the company’s agreement.

Debt consolidation is a procedure that can take years to hash
out. In most case, people with bad credit or current debt
problems often believe there is no way out. They may go online
and find a source that will help reduce their debts, believing
that the amount of their debts is lower. Since few companies will
lead many to believe this is true, it is important that you know
that the debt consolidation companies are only reducing your
rates of interest.

If you own a home and want to use the equity to refinance, you
may want to understand that a good number of the Home Equity
Loans will actually land you deeper in debt. Once you are bound
to the contract, you will find the complications are more
frustrating than when you first applied for the loan.

I brought this up because many homeowners will refinance their
homes without looking into the details first, believing they are
consolidating their bills. They may feel they are getting
something free, since the amount on the mortgage appears reduced.
However, if you take out a loan to consolidate your mortgage, you
are only stepping into another debt.

Be advised that some mortgage contracts stipulate that if you
refinance your home during the contract agreement, you may face
penalties, which may include paying off your first home, your
second home, and the interest rates included. Therefore, if you
are considering debt consolidation, consider the entire picture
first-and don’t ever fall for the bogus claim that any debt
consolidation will actually be free.

Get debt help online now at www.debt-free-america.com.

About The Author
Talbert Williams offers debt consolidation, debt reduction, credit card debt referrals and advice. For more information, articles, news, tools and valuable resources on debt solutions, visit this site: http://www.debt-free-america.com/adtrackz/go.php?c=articles.

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A Guide To Free Debt Consolidation

Debt consolidation is becoming an increasingly popular debt management tool used to help people get a handle on their debts. The principle of debt consolidation is simple: take out one low cost debt consolidation loan to pay-off all of your creditors, leaving you to handle just one loan repayment amount per month at a manageable rate to suit your finances.

Free debt consolidation advice is available from a variety of sources, including the Internet. Finding free debt consolidation advice specific to your circumstances though is not always easy, with some free debt consolidation sources giving apparently contradictory advice on debt consolidation matters. But, regardless of the approach you take to debt consolidation there are some basic rules that we should all follow to insure that the debt consolidation product we end up with is right for our situation.

Free debt consolidation advice

Free consolidation tip #1

Add up your debt: Before jumping headlong into a debt consolidation program you’ll first need to work out what the total sum of your debt amounts too. Check the outstanding balances of all your credit cards, store cards, finance agreements and even your bank overdraft. For the purpose of debt consolidation do not include your mortgage.

Free consolidation tip #2

APR: Find out the APR that you are currently paying on your various debts. This will give you an idea of the amount of interest that you are paying on each part of your debt. If you add the APRs together and divide by the number of different credit cards, store cards etc. on which you have an outstanding debt then you will come up with the average APR that you are being charged. Don’t be surprised if this is 15% or more.

Free consolidation tip #3

Work out your income vs. expenditure: Make a personal income vs. expenditure budget. This should include a column showing all money coming into your household on a monthly basis and another column showing all expenses that are going out each month. You’ll need to factor in new purchases on credit cards, store cards, as well as all of your direct debits and monthly, quarterly and annual bills. Ignore current interest paid out on outstanding debt balances.

Free consolidation tip #4

Analyse expenses: Consider each of your expenses in turn, and ask yourself if you can reduce the cost of this expense. For instance, by changing your gas

About The Author
Gary Tallon is a finance writer of over 10 years experience, writing in various fields including life insurance and personal loans.

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