Consolidated Loans Experiences From an Average Guy.

Consolidated Loan Debt Reduction?

You've seen the day-time tv commercials, "We offer consolidated loans for debt reduction, call now".

Have you ever wondered what they are actually selling? Well I did, and I've had a little history with such services.

My Consolidated Loan For Debt Reduction Background.

I was steadily building up debt. Incredibly difficult to payoff debt, called revolving credit. Each day it seemed like I was owing more and more. I realized my problem was two-fold, the amount I owe and the amount of revolving debt interest I was paying. So I looked into trying to reduce both the borrowed amount(yes using a credit card is borrowing money), and the interest rates. So, I saw an advertisement about debt reduction services, and consolidated loans being offered by one company. I called.

Consolidated Loans For Debt Reduction Information

Through research, and asking sales people, I found that debt reduction companies talk about debt as in what you will pay, only making minimum payments a month. Example, if you owe $1,000 at 11% interest, and I owe the same amount, $1,000 but at 8% interest, they calculate the former debt as larger. Meaning if they can get you a lower rate, like the 8% interest example, they can reduce your debt.

I didn't like the 'special' math they were using, I mean if I owe $1,000, regardless of the credit card's interest rates, I still am in debt by a $1,000. Now that's my math.

Consolidated Loan For Debt Reduction Services - Truth?

Ok, with the information i was provided about these debt reduction consolidated loans, and I shared here, I came to this conclusion. Debt Reduction Programs and Services, are trying to pass off their standard lower interest rate loan as also a debt reduction program. This sets them apart from other debt reduction programs and service providers, by not being able to compare apples-to-apples. You need to consider this when planning some sort of debt consolidation plan. If they can't reduce your current debt, the total payoff of all outstanding loans and credit cards, then it isn't a debt reduction program. Now these debt reduction services help, in they get you better interest rates, but remember your debt remains the same. Plan your consolidation debt loan reduction strategy well.

My Take on these Consolidated Loans For Debt Reduction.

After receiving this shocker about these financial assistance service providers, and having time to think about it, I am not bothered by them. If you are in debt, you need to get the rate at which you continue to grow in debt under control. Lower interest rates from consolidated loans is one way. I am still interested in ways to actually, instantly reduce debt, but it seems like only paying down the loans right now seem to work for me, but I've heard about plans to really reduce your debt. Read on.

Real Debt Reduction Plans

If you have a loan, or debt you built up directly with a lender, sometimes you can negotiate a total payoff less than you actually owe. Example, say you collect department store credit cards. Many of these store credit cards have just the store name on them, and aren't owed by the store. This means that some department store credit cards can actually have the same lending services, or credit card company. So, what I've heard, you find who actually operates all your department store credit cards, and put together a list. Find the most money, and the most cards you owe on to the same credit lending company, and call them. They might be wiling to cut a deal with you, since if you leave your debt on the department store credit card, they have to share the profits with that specific store, they might be willing to give you one of their 'real' credit cards, if you transfer the whole balance over to them. This way they don't have to share in the profits. Now since this benefits the real credit card lender, you can negotiate a debt reduction. Since they are making more on how much you owe, they might reduce the total amount you owe. Get it?

If you can give direct benefits to a lender, they might be wiling to forgive a certain amount of debt. This doesn't mean you get a higher, or lower interest rate, just that the lender now doesn't have to share any profits with a department store, resulting in a favorable treatment of what you owe. ;)

Now I've only heard of this debt reduction technique, I've never done it and like always, seek professional financial help, if you are in debt. Good luck.

Notice: Information contained in this site is complied from personal experience, and may not apply to your consolidated loan needs. Please seek professional financial planning. Professional Financial Planning is necessary when trying to develop a plan of financial freedom, and debt reduction program. Don't experiment with any get out debt program, if you feel overwhelmed by planning your own debt reduction program, you need to admit you need help with your family's financial health. Everyone's debt situation is different, and you may need a get out of debt program specially customized for your debt and income levels, so shop around for a consumer debt counselor. From personal experiences, all certification programs aren't the same, so if you are looking for a certified debt counselor, please ensure you get references, and do research into what you need from a consumer debt counselor. Good luck.