Debt Consolidation Education

Latest Guides

  • Debt Consolidation Scams
    While there are some reputable companies who can help you reduce or eliminate your debt, there are many more who only offer misleading statements and outright scams. Learn how to tell the difference between the two.
  • Debt Consolidation Loan Things to Consider
    The first thing a potential borrower must understand is that a debt consolidation loan in no way erases any of your debts. It simply transfers the whole amount to one creditor, and often at excessive interest rates. It also poses greater risks to you as a borrower, if you have pledged your home as collateral. Before getting a loan, consider whether the advantages are enough to offset risks.
  • Using a Home Equity Loan as a Debt Consolidation Loan
    Using a line of credit based on your home equity, has become a popular way for consumers to handle unexpected family expenses, or to pay off accumulated debts. But a home equity loan is not always the simplest option for you. Keep the following in mind: If you decide a home equity loan or line of credit is not for you, the law allows three days after opening an equity account to cancel it..
  • Debt Consolidation is NOT A Loan
    The words “debt consolidation” should mean one thing: a consolidation of all that you owe into one debt, and one payment. Unfortunately, this could turn into a debt consolidation loan, with an very high interest rate. Be sure to carefully read the terms of the debt consolidation agreement which is drawn up between you and your unsecured creditors. Find out if debt consolidation is for you.
  • Explaining Debt Reduction
    Debt reduction and debt consolidation can help you to consolidate your unsecured debts like credit cards, student loans, bank lines of credit, medical bills, department store credit cards, collection agency accounts, etc. When you join a program you are having a credit counselor work on your behalf. They will negotiate with your creditors to help you get the lowest interest rates possible.
  • Debt Consolidation Explained
    Debt consolidation is often associated with non-profit consumer credit counseling services. Although it may sound like a loan, debt consolidation is entirely different. Unlike a loan, your debt is "consolidated" and your interest rate reduced without the need for a loan. A credit card debt consolidation program will negotiate with your creditors. It's a "win-win" situation for the consumer.
  • Credit Card Debt Consolidation Options
    Debt consolidation is the process by which you convert high interest debt into a more manageable sum so you can pay it off faster. You can work with a credit card debt consolidation service; or, you can take out a loan to pay off your high interest credit cards. People often turn to family members, home equity loans, or in the worst case, a new credit card with a lower interest (for now).
  • A Debt Management Program
    A professional debt management program can help you get out of debt. First, there are two types of debt. With secured debt, the creditor has the legal right to repossess the goods or property that the loan is secured against. With unsecured debts, the creditor does not have the automatic right to repossess any goods. Knowing the psychology of debt and understanding repayment plans is crucial.

Latest Blog Posts

  • Obscure Credit Score Facts from Liz Pulliam Weston
    In this week's Personal Finance Hour, Liz Pulliam Weston shares some interesting tidbits, personal anecdotes, and FICO facts that you might not know about credit scoring.
  • Today is National "Let It Go" Day!
    You might not know this, but today is national Let It Go Day. Because we’re a credit and finance blog, we think you should let go of all those past credit mistakes that you can’t go back in time and fix.