Who Will Consolidate My Credit Cards With No Cash Up Front?

If you have run into trouble with your credit card debt, you may be considering a credit card debt consolidation loan to solve your financial problems. Lenders make offers of large sums at relatively low interest rates in order to transfer your debt into their hands. Besides offering a competitive interest rate, they also offer you the opportunity to turn multiple and confusing debts into a single monthly payment.

Who Will Consolidate My Credit Cards With No Cash Up Front?

The first difficulty that you may encounter with a loan is the initial fee that some lenders will charge. When you are already strapped for funds, it does not feel right spending even more to get a new loan. However, you may be lucky enough to find someone that does not charge any money up front.

Why This Solution Is Not Satisfactory

Ultimately, however, seeking a consolidation loan is not a good idea. It may be better than struggling on with your credit cards debts and outrageous interest rates, but it leaves you deep in debt. You simply change creditors and now have to hope that the new creditor will be fair with your debt. There is another solution to your credit card debt that could free you from debt and restore your good credit rating in just two years.

The Debt Settlement Option

Debt settlement is an innovative and aggressive approach to handling your credit card problems decisively. This solution is not for the faint-hearted. It requires you to take on the credit card companies and make your own demands. However, you will not be alone in this. Your debt representative will handle your case and help you settle a fair share of your debt and get your account closed for good.

How It Works

Debt settlement may be the perfect solution for credit card debts, medical bills and a few other types of financial liabilities. It all starts with a phone call or online chat with a debt settlement adviser. You let this person know about the extent of your debts and provide some details about accounts and company names. He or she will let you know if you qualify.

If you are a good candidate, you will have to make a choice at that point about whether or not to continue. The road to debt settlement can be unnerving, but the outcome is worth the trouble.

To begin the process, you stop making payments on your credit card debts. Instead of sending money to your creditors, you send a single payment every month to your debt settlement company. The money is placed in a special account that grows with each monthly payment.

Your creditors will begin to harass you for payment right away. Your debt adviser will recommend that you ignore all attempts to communicate and pass them on to the debt settlement company. Someone will act on your behalf and begin to make offers to your creditors with the money amassing in your account. One by one, your debt representatives will convince your creditors to accept lump sum payments in exchange for closing your account. Typically, debt counselors can buy off your creditors for as little as a fraction of the total amount owed.

When the last creditor accepts a payment, you will be officially free of credit card debt. Your credit rating will begin to recover. Some clients even get loan offers and credit card offers in the mail right after they close the last deal. The whole process may take as long as two to four years.

Comparison to Consolidation Loans

Debt settlement far outshines debt consolidation loans. First of all, you end up with no debt in just two to four years. Second, you pay less than what you owe. Third, your credit score recovers. This last economic transformation allows you to start your financial life over again.

Debt settlement is a great solution to credit card debt. It does not always work, but debt settlement counselors are getting better at this every day. Credit card companies are beginning to understand that they have to offer other solutions for people who are in over their heads.