Debt Relief Options - Consolidating Debt Without Ruining My Credit

Aug. 13, 2010 - PRLog -- In all the mis-information out there on methods to deal with credit card debt or other unsecured debt only two don't ruin your credit. Many people get so emotionally involved they file bankruptcy or worse do a debt settlement without taking a little time to see what it out there.
In the process they ruin their own credit for what looks like help on their debt. If you can make payments, but struggle to pay down the balances there is no need to destroy your credit score to gain control of your finances. You can get control and protect or improve your credit.
If you are looking for a way to consolidate debt without ruining your credit here, in a nutshell are you options.
There are two ways to accomplish that goal.
1. Pay your debt according to the original agreement you had with your creditor. Chances are if you were not having a problem with that you would not be reading this. 2. Use a debt management program. Not a consolidation loan.
When you are in deep the last thing you need is new debt.
A legitimate debt management program keeps you in good standing with your creditors and still gets you out of debt much faster than the creditors original terms without ruining credit.
You might wonder why the creditors will bend over backwards for a debt management company but not you. After all everyone says you should call your creditor and work something out, right?
The truth is any deal you make with your creditor will be subject to change at anytime, their terms are temporary.
In a debt management program the terms are for the life of the debt.
Let's say you have several credit card accounts, each from a different creditor. As a group they know they are more likely to get paid in full. With most of your credit cards in one debt management program, your creditors have a greater comfort level then if you cut deals with each of them separately. They have done the research and know that to be true.
In a Debt Management Program:
You pay much less in interest than your original agreement. For many people that savings approaches six figures if only the original minimum debt management payment was made. You can make larger payments any time.
Recent changes in credit card laws require the credit card companies to say how long it will take to pay off your current debt at the minimum payment. You may be one of many discovering your payoff time is pushing 20 years!
Federal Guidelines require debt management programs to be paid within 5 years. Creditors have responded with reduced interest rates to accelerate principal reductions to keep within those guidelines.
A real bonus in a debt management program is that with timely payments your credit score will improve as you pay your debt down.
You can see now how this can be done without ruining credit.
Not a Negative Entry on Your Credit Report:
Enrolling in a DMP does not result in a negative entry on your credit report. Most creditors do not report dmps to the credit reporting agencies at all. The few that do, remove the entry upon completion of the program. There is no 7-10 year hangover like bankruptcy or debt settlement.
In the middle of your DMP it would not be uncommon to be approved for a new mortgage or a home refinance.
Creditors see your DMP as you taking control of your debt. Where before you were controlled by your debt. You can do this!
Hope that helps a little.

Free Debt Advice
(http://www.debtadvicezone.com)

# # #

To speak with a debt relief specialist for a free debt consultation check out the following link. They will provide a free and unbiased evaluation of your financial situation to determine what the best debt relief option is.
Free Debt Advice
(http://www.debtadvicezone.com)
Or Call - 877-853-6466