Posted on June 7, 2009 at 11:38 pm I Think Below is Top Benefits of Credit Card Debt Consolidation1. Stress Reduced2. Lower Interest Rates3. Tax Benefits4. Easy Single Payment Every Month5. Stop Fretting Calls

Posted on June 8, 2009 at 1:04 am Applying for debt consolidation--particularly credit counseling--allows a consumer to receive a personalized plan for handling their money and debts. Credit counselors can also advise their clients on developing a realistic and attainable budget spread out over a specific period of time. They are also entitled to free workshops and seminars that tackle financial matters.Credit counseling does not guarantee a total stop of collection calls, though. At times debt collectors may persist in their attempts for the consumer to pay up. If the debtor really wishes for all collection calls to stop, they need to write a Cease and Desist Letter to the debt collection company, requesting that all communication be done through mail only.

Posted on June 8, 2009 at 2:30 am does anyone know how much interest Debt Consolidation offers?

Posted on June 8, 2009 at 8:44 am Debtless in Seattle- I believe your question is, "How much interest is charged on debt consolidation loans?" If that is what you are trying to find out, you should know that that consolidation loans are extended at a variety of different interest rates depending on the credit history and financial standing of the borrower. It also depends on what type of consolidation loan is being extended (unsecured vs. secured). If it is a secured debt consolidation loan (home equity loan), the borrower secures the debt with the equity in the home. Since collateral is attached to the loan, the interest rates tend to be lower. Unsecured consolidation loans however have no collateral attached and as a result put the lender in a higher position of risk. As a result, interest rates tend to be higher on these loans. Another thing to keep in mind, a person with a solid credit history is likely to get a lower interest rate on a loan than someone who has poor credit history and poses a risk for lenders in the future.

Posted on June 8, 2009 at 10:02 am I think another benefit of debt consolidation is that its effect on your credit report--and personal records, for that matter--isn't as crippling as having a bankruptcy noted there. I mean, it takes as much as ten years for a bankruptcy to stay on a consumer's credit report, which is really bad for their credit. It also stays on their personal records as much as twenty years. If you've enrolled in debt consolidation, particularly in a debt management plan, it will merely state on your report that you are going through credit counseling and nothing more. Delinquencies only last seven years on a credit report and some lenders are actually more gracious to debtors who have enrolled their accounts with these firms. For them, it's a good faith gesture, showing that in spite of hardship and unfortunate circumstances, they are ready and willing to take care of the debt.

Posted on June 8, 2009 at 10:04 am Allow me to correct myself--it's public records, not personal records. A bankruptcy stays on a person's public records for twenty years.My apologies for the mistake.

Posted on June 8, 2009 at 11:23 am Right, and a settlement only stays on your credit report for 7 years from the date of the settlement. When you consider the fact that Chapter 7 BK stays on your credit report for 10 years, and Chapter 13 BK 7 years, this is much less of a hit to your credit overall. In addition, by settling your accounts, you are showing potential lenders (at a future date) that you worked hard to satisfy the debt on some level. Granted, you don't pay the debt back in full through a settlement, but a lot of lenders view bankruptcy as "waiving the white flag."

Posted on June 15, 2009 at 12:16 am Yeah,Thanks to all share your response here....

Posted on June 16, 2009 at 4:23 pm The top benefits of debt consolidation depend on how you are consolidating the debt. For instance, are you: 1) Enrolling in a debt settlement program? 2) Enrolling in a debt management program (credit counseling)? 3) Taking out an unsecured consolidation loan? 4) Taking out a home equity loan? 5) Transferring your debt to a low interest or 0% interest credit card? 6) Filing Chapter 13 bankruptcy? Each of these "debt consolidation" options carry their own benefits and drawbacks so it certainly would depend.