Article Trunk



The Wallace Organization Debt Consolidation

07.09.2011 · Posted in Finance Articles

Debt consolidation can be a very scary process after a little light is shed on this get out of debt program.rnrnDebt consolidation is a loan with an interest rate and fees,most people with less than perfect credit will find that it is not easy to acquire one,just because your monthly payment might go down does not mean that it is the best thing for your finances.rnrnMany times you will find yourself getting out of debt years later than with your original debt,Bottom line.the more debt you have,the more money the debt consolidation company makes.rnrnHow do Debt Consolidation Companies make money?rnrnInterest rate,The consolidation loan itself has an interest rate and can be as high as 22%. Processing fees Every time money changes hands there is usually a processing fee that can be as high as 15%.rnrnWhat about Non Profit Debt Consolidation Companies?rnrnMost people think non profit debt consolidation companies cannot possibly be profiting from you because they arent allowed to make money,actually,this is a false perception.rnrnMost non profit debt consolidation companies file as a 501(c)(3) non profit organization,a non profit organization does not distribute its profit to owners or shareholders,but instead uses them to help pursue its goals.rnrnLets use a non profit hospital as an example,just because the hospital is a non profit does not mean the doctors dont make huge salaries,it just means that the profit that the hospital makes must be used to pursue its goals.rnrnDebt Relief is a term used in the debt help industry very loosely,it can mean credit counseling,debt consolidation, or bankruptcy.rnrnCredit counseling uses negotiation as its main tool to lower your debt,credit counseling companies make money by charging an upfront fee that can be as high as $3000.rnrnThey also receive a percentage or flat fee paid to them by the lender themselves,some credit counseling companies also require you to make payments to them directly,there by incurring a processing fee for each transaction.rnrnMost of the time,with just a quick phone call to your non secured debtor,you can negotiate a lower interest rate on your own without credit counseling.rnrnBankruptcy is listed as one of the top five most stressful things an individual can go though,it is not an answer to eliminate all your debt.rnrnStudent loans,child support,taxes,and alimony are just a few of the debt items that will not be erased,bankruptcy will absolutely devastate your credit score directly for seven years and will follow you well after that.rnrnJob applications and future loan applications will ask if you have filed for bankruptcy,if at all possible it is better to pay for the debt you have incurred.rnrnIf You Need The Best Help Out There Click here http://vur.me/trader1ew/VV/rnrnBy. Eugene Wallace.rnThe President Of The Wallace Organization.rnhttp://trader1ew.com

Leave a Reply

You must be logged in to post a comment.