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What is the difference between debt management and debt
consolidation? And what are the advantages to using these
strategies?
Debt management includes a number of services within a huge
group of debt-environment functions and activities, including
debt reduction, consolidation, negotiation, settlement, economic
failure, credit repair clinics, and even credit reports.
In America, on an average, people have eight credit cards and
bear an average debt of $9340. High interest rates of 18-25% is
one of the major reasons why debt has grown at a pace of 5%
every year. Thus, debt consolidation is a procedure which saves
you from the problems of handling large debts of several
creditors.
Debt consolidation provides you with support that brings
overbearing monthly payments within affordable limits. As
alluded to above, there is an enormous need for this service,
which is the exact reason why a large amount of debt
consolidation companies have opened in recent years.
Are debt consolidation companies safe?
Today, many consumers are afraid to get involved with debt
consolidation companies because there have been so many people
who have been victimized by bad debt consolidation companies.
The trick is to choose your company with utmost care.
We personally suggest that you select a debt consolidation
company only after checking its previous records. You should
also try to avoid credit repair clinics, as many of them are
plainly illegal.
So don't just follow advertisements blindly. All your potential
consolidators and question them. Be your own judge.
How will a good debt consolidation company help me?
A debt consolidation company can help you in a number of
different ways, including the following:
* It can help you lower your monthly payments by 40-60%. * It
can help reduce interest rates. * It can waive late fees. * It
can aid you in avoiding bankruptcy. * It can make you debt free
in the fastest time possible, no matter what your position.
A large number of these companies have websites and in addition
give free counseling to consumers. You can take advantage of
these services to suit your needs and potentially get out of
debt free.
Talbert Williams 1DebtFreedom.com All rights reserved
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.1debtfreedom.com
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