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Debt consolidation programs provide a number of benefits for those struggling to pay off their lenders. By working with creditors to consolidate an individual’s debt into one easy bill, these programs can be of invaluable service to those in need. If you have unsecured debt that is spiraling out of control, here are some of the reasons you may want to get in touch with a reputable debt consolidator.

Reduce Your Rates

Interest rates are one of the primary culprits when it comes to unmanageable debt. If you are struggling to make much more than your minimum payments each month, interest rates are the reason it may take a long time to pay those bills down. Debt consolidation programs can help you negotiate with your creditors and restructure your payments in a way that brings down your interest rates and helps you put more of your money towards the balance.

Reduce Monthly Payments

Take the average person with a spouse, two kids, and a full-time job. This person has neither the time nor the energy to juggle five or six bills before they even get to the big ones like the car or mortgage payment. Debt consolidation programs can help you eliminate multiple bills by consolidating your obligations into a single monthly bill. Not only does this reduce the amount of money you’re obliged to pay, but it can take a lot of the stress out of managing your family finances.

Reduce Late Fees

Late fees and penalties can conspire to make paying down a loan nearly impossible. This problem is only compounded when you’re trying to juggle multiple bills and keep track of several due dates. By letting a debt consolidator guide you through lender negotiations, you may be able to get those late fees reduced or even, in some cases, eliminated altogether.

Avoid Bad Solutions

As you may already know, debt consolidation programs from a company like CreditGuard of America are not the only solution on the market being offered to those in financial peril. While every solution has its place, some are better than others. So-called consolidation loans can leave you in worse shape than you started. The same can be said for a second mortgage, which could put your house in jeopardy if your circumstances don’t improve. Bankruptcy should be avoided unless it is a last resort. By taking advantage of a good debt consolidator, you can avoid these bad solutions and the drawbacks that accompany them.

The Growth of Non Profit Credit Counseling

the growth of non-profit credit counselingWith many people today struggling with debt, credit counseling has become a booming industry. Credit counselors promise to help better understand credit scores and reduce debt fast and easy, but there are many types of credit counselors and finding the right one can be difficult. Non profit credit counseling is often the best option for those who are struggling with debt because going with a non profit company ensures that the borrower doesn’t have to pay any unnecessary fees.

Non profit credit counseling companies are not attempting to make money. This means they only charge as much as necessary to keep the company in business and that they have no interest in charging the borrowers extra fees or tacking on unnecessary services and charges. This is extremely important for those who are already financially struggling and trying to regain a firm financial footing because for these people every dollar may count. Those who choose a for profit credit counseling agency may find themselves spending money on the credit counseling service that they could instead have been spending on paying down their debt.

Non profit credit companies also follow rigorous standards and procedures because many of them operate with government grants and loans or specific tax regulations. This means that the non profit companies need to be completely legitimate and needs to retain complex levels of financial data. By contrast, for profit credit counseling companies can sometimes take advantage of their customers or be inefficient from a cost perspective.

There are many non profit credit counseling agencies available online, and many of them are available for free consultation at any time either via the phone or the internet. Not only will many non profit agencies advise the borrower on their current debt problems, but they can also discuss the borrower’s future credit history and how they can best recover in the future, as well as look over their budget and identify problem areas. Credit counseling companies can also educate the borrower on how credit works and the many factors that affect it.