Debt Consolidation Agent - Debt Free Plans

Debt Free Plans

What do you know about debt free plans? Not much? Well, you're in for an education!

Different Strokes

There are five different types of debt free plans out there, so it's pretty much guaranteed that there's something for everyone. In ways, these debt free plans are very similar, but some of the requirements make them very different:

If you want a debt consolidation mortgage, you have to be a homeowner. And if you are a homeowner, this is really the best way for you to go debt free. You can borrow the amount of your unsecured debts from your mortgage lender to pay them all off. Then the amount you borrowed is added on to your mortgage, so you wind up paying off your high-interest debts at the same low interest rate as your mortgage. Pretty sweet!
If you want a debt consolidation loan, you need collateral. Some people use their house as their collateral, but that's not smart. First of all, if you have a house, you should get the aforementioned debt consolidation mortgage. Second, your house is more than likely worth far more than you owe in unsecured debts, so if you default on the loan, the bank gets your house. That's why it's better to use a car that's paid for (or something similar) as your collateral. Of course, nobody likest to think they would default, but an unforseen job loss or other loss of income could throw a wrench into your plans. Anyway, a debt consolidation loan is a loan given to you to pay off your unsecured debts. The interest rate is much lower than what you are paying on your unsecured debts, so you get out of debt in about five years.
If you want to enroll in a debt settlement plan, you need to have access to a lot of cash. Why? Because a debt settlement agent will be able to get the total amount you owe knocked down by 60-80%, but in return, your creditors will want the total amount due right away. Immediately, if not sooner.
Student loan debt consolidation is a program designed for those with $10,000 or more in student loan debt. It's a low-interest loan that combines all of your student loan debt, and you pay it back over a longer period of time, so your payments are cut in half.
A debt consolidation program is a sort of "catch-all" program. You don't need to be a homeowner, have collateral, have access to a large sum of money or have student loan debt. You just need to have a job (which you'd have to have for the other programs as well). When you enroll in a debt consolidation program, a debt consolidation agent contacts your creditors to get you reductions in your interest rates and balances (this can be as much as 57% off your total balance). Then they put all those new, lower balances together under one umbrella and you make one monthly payment to the debt consolidation company, which they distribute among your creditors. Again, you can be out of debt in five years under this program.

Of all these debt free plans, do you know which one is best for you? You can probably get a pretty good idea from what you've just read. But to know for sure (and to get more specific details for each plan) contact a debt management company. They will be able to analyze your personal financial situation and tell you which debt free plans are your best option. Just think--once you enroll in one of these debt free programs, you'll be on your way to debt free living!

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