Debt Reduction Program - Finding The Right Program For You

 


Visitors: 466

Find the right debt reduction program begins by asking yourself some key questions. Once you have identified your situation and goals, you can pick the program with the best results.

Ask Yourself Some Questions

What kind of debt are you dealing with – mortgage or credit cards? How manageable are your monthly payments? How soon do you want to eliminate your debt? Answers to these questions will greatly determine which debt reduction program will best meet your needs.

Reducing Interest Rates

To simply reduce your interest rates, refinance your debt with a home equity or personal loan. With minimal impact on your credit, you can close out high interest mortgage or credit card accounts.

Debt management companies also reduce rates on unsecured loans. For a fee, they will also handle payments on your account. A debt management plan has the potential of limiting your ability to open new accounts for a year or more. But once you get a handle on your debt, you can qualify for better rates.

Lowering Monthly Payments

If you are swimming in payments with no financial breathing room, you might consider consolidating your debt into a long term loan. By extending the length of your payment, your monthly payments will be lower. However, you will also pay more in interest charges over the course of your loan.

Another option is to use a debt negotiation service, which will work with creditors to reduce your loan balances. Not all creditors will agree to eliminate your debt, buy some will reduce accounts by 10% or more.

Helping Manage Your Accounts

To make debt reduction automatic, use a company that manages your accounts. Debt management plans can get you out of unsecured debt usually in less than five years.

A consolidating loan can also make payments automatic. Shortening terms will help you pay off your debt sooner and save on interest.

Shopping Services

Just like with any service, shop around for the right program and company. Request information on services and rates before you sign a contract. By comparing several companies, you can also get an idea on what are reasonable fees.

To view our recommended debt consolidation companies online, visit this page: Recommended Debt Consolidation Services .

Carrie Reeder is the owner of ABC Loan Guide , an informational website about various types of loans.

(426)

Article Source:


 
Rate this Article: 
 
Debt Reduction Techniques - Finding Debt Help Online
Rated 4 / 5
based on 5 votes
ArticleSlash

Related Articles:

How to Choose a Debt Reduction Program to Get Out of Debt Fast

by: A. C. West (June 19, 2008) 
(Finance/Debt Management)

Debt Reduction Program To Become Debt Free

by: Gary Gresham (December 10, 2005) 
(Finance/Debt Relief)

Dynamically Finding Live Program Invariants to Optimise Support Program ..

by: Balamurugan Balusamy (December 28, 2006) 
(Computers and Technology)

Debt Consolidation Program - A Program That Aids To Rebuild Your Credit Score

by: Anupriya Jain (June 01, 2007) 
(Finance)

Debt Consolidation Program Loan A Guide to Finding the Best Deals

by: Julian Lim (August 28, 2008) 
(Finance/Debt Consolidation)

Create Your Personal Stress Reduction Program

by: Sandi Anders (April 25, 2008) 
(Self Improvement/Stress Management)

Incorporating Enjoyment in Your Weight Reduction Program

by: Siva Parvati (July 27, 2008) 
(Health and Fitness/Weight Loss)

Don't Use Ionithermie Cellulite Reduction Program Until You Read This

by: Melinda Humprey (May 29, 2008) 
(Health and Fitness/Skin Care)

Discovering New Foods and Recipes for Your Weight Reduction Program

by: Dave Ouellette (July 25, 2007) 
(Health and Fitness/Popular Diets)

Debt Reduction Techniques - Finding Debt Help Online

by: L. Sampson (March 13, 2007) 
(Finance)