There are some companies who legitimately want to help people with bad credit consolidate their debt. These companies usually charge a reasonable up-front fee, avoid making extravagant claims and will offer professional references upon request.

Then there is the “other” type of bad credit consolidation company. These types of companies will prey upon your fears and offer you hope that somewhere out there lies and easy solution to your problems. That bad news is, the latter type of bad credit debt consolidation companies is far more common than the former.

Debt Consolidation Companies: What Exactly Do They Do?

Basically, what a bad credit consolidation company does is that it acts as your mediator. They talk to your creditors and try to lower both your interest rates and monthly payments. Once they have reached an agreement with your creditors, they will let you know what your monthly total will be. Then you will send this monthly amount to the debt consolidation company and they will distribute the money to all your creditors.

Now in theory, that’s what they’re supposed to do. The companies that are running scams often keep much of that money you sent them and call it “administration fees” or ” loan origination fees”, even though no loan has been or originated. What this means to you is that your creditors will continue to harass you and report your account as delinquent and unpaid to the credit reporting agencies. The money that you sent to these companies never makes it to the creditors.

Does Legitimate Bad Credit Debt Consolidation Really Exist?

There are legitimate bad credit debt consolidation companies. The legitimate companies will not send you unsolicited e-mails or any kind of mail unsolicited. You also won’t find them advertising on late-night television. If your credit score is very poor, chances are you probably won’t qualify for unsecured loans throw a bank. However, you may be able to refinance your house or your car to pay off any unsecured debt. Best to talk to your bank or mortgage broker. Another good idea is to go see a legitimate financial planner. Let this professional assess your budget and then help you find ways to get out of debt and stay out of debt.

One other way to consolidate debt it is to transfer all your unsecured debt to one low interest credit card. This approach does have a few drawbacks though. If your credit really sucks, the credit card company may decide to hike up your interest rate without warning. If you happen to have more then just one credit card, you may have to either cut them up or put them away in a safe place to avoid the temptation of racking up new charges on them. Of course you should make the minimum monthly payments, more if you can afford it, to the card left with the balance of your debts.

Despite the fact that you have bad credit, debt consolidation is still possible. Just make sure that you’re working with a reputable company that truly does want to help you get out of debt.

Kerry Ng is a successful Webmaster and publisher of The Debt Info Blog. For more great helpful information about Debt Tips visit The Debt Info Blog

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Learning how to consolidate credit card debt is one of the best things cardholders can do. Consolidation is perfect for those who are looking to better their credit for the future. There are many advantages for cardholders that take advantage of credit card debt consolidation. If you are thinking about consolidation, then there are a few things you should consider before doing so. Use these tips as a guide while you consolidate your debt.

Why Consolidate?

There are several great reasons to consolidate credit card debt. One of the best reasons is to get better rates. If you can get a better rate on a consolidation than you currently have, then there is no reason not to consolidate. Consolidating credit card debt can add up to substantial savings.

Look up all of your interest rates from each card and write them on a list. Then note the new rate you would be given. If the new rate is lower than the average of the old rate, then to consolidating your credit card debts would make financial sense for you. If there are cards that have a lower rate, then you don’t have to include them in your consolidation.

Another reason people love to consolidate credit card debt is to make their lives simple. By paying one bill, they can cut out a lot of stress and bill paying time. You should probably not consolidate your debt for this reason alone however. You don’t want to pay more in the long run just to cut out a few pieces of mail monthly. Consolidation also gives those in a credit card mess a chance to get out of it. By consolidating, they may be making lower monthly payments than they would be if they did nothing. By closing out the other accounts, their credit may also be improved.

Who To Turn To?

When considering credit card debt consolidation, you should turn to professionals for a consultation. There are many credit card companies and banks that would like to help you with your request. Make sure you do your research so that when you consolidate credit card debt, you are certain you are making a decision that is profitable to you. Make sure there are no hidden fees that come with different consolidation plans. Doing your research can help you save money for the future.

Making The Choice

If you want to consolidate credit card debt, you should first look at all of your debt in detail. Once you know what you have, it will be easier to contact professionals to help you with your consolidation. Don’t be afraid to tell them you are shopping for the best deal. You should do yourself the honor of getting the best deal out there to making your consolidation as worthwhile as possible.

Article Source: http://EzineArticles.com/?expert=Morgan_Hamilton

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Start Lowering Your Interest Rates

High interest rates make it nearly impossible to get a handle on large credit card balances. But by lowering your interest rates, you can increase your payment on those cards’ balances without increasing your overall payment.

The two most common ways to reduce your rates are to open a new credit card or consolidate with a loan. Transferring balances to an introductory low or no rate