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The average household credit card balance in the United States is $8,000; and this takes no account of other loans. The credit mentality of the 21st century makes it remarkably easy to get into debt, often very deeply.
However, the companies who provided the credit in the first place might not be so helpful in helping you to reduce the debt. It can seem to be a desperate situation, but there are ways of addressing the problem.
For example, you can consolidate your debt by finding a cheaper form of credit that has a lower interest rate, and borrowing enough to pay of several more expensive debts. Usually, you need to secure this kind of loan, perhaps as a second mortgage on your property. The result is that your monthly mortgage payments go up and other payments (credit cards, store cards etc.) disappear.
The advantages are lower overall monthly payments schedules to one recipient, instead of many. Professional companies in this field include Countrywide Home Loans. Check them out for information and tools designed to help you calculate how much you could reduce your monthly debt repayments.
If you do not own a property, secured debt consolidation option may not be realistic for you. This is where debt management comes in. Debt management agencies like Debt Relief Network will go over all your expenses with you and help you decide what you can afford to pay each month. They will negotiate with creditors, on your behalf, to reduce the amount you pay every month and to lower the interest rate you pay. They will undertake to make payments to individual creditors, and you simply send one check per month to the debt management company. This is usually at no cost to you, as the debt management agency is paid by the creditors, who see this as a surer way of having their money returned to them.
You could try to do this yourself, but it is unlikely that you would get such good deals out of your creditors. Debt management companies are extremely skilled at these negotiations and have the advantage of scale. It is also part of the service to help you to organize your own finances well, for the present and the future.
Debt management companies can also be really helpful if you find that your Credit history contains misinformation. A Credit History is a report that exists if you've ever applied for a credit card, a personal loan, or insurance. If there is negative information on this report, it can adversely affect other applications for credit. If this information is correct, then it is not possible to change it, but if it is untrue, then you can have it changed or erased. It is possible to do this for yourself, but you will find that a good debt management company can do this faster and more effectively because they have experience and leverage than a private individual.
Debt management companies can also help you
improve your credit report by giving advice for the future. They can show you how to build up a good Credit History, even if it isn't ideal at the
moment. Most negative information, other than that relating to bankruptcy, has a time limit for inclusion in the report. Debt management companies
can also ascertain if the credit report is complete, and ensure that positive credit transactions are also included. The right Debt Management Company
will advise further on how to improve your credit history.
If you have fallen by the wayside and can't see the way back, a debt management company like Debt Relief Network can help put you back on the financial highway by offering realistic advice and solutions to your debt problems.