If you’re having a serious problem with debt, it’s nothing to be ashamed of. Millions of American families are in the same boat. I heard one report the other night that nearly 31,000,000 Americans are either unemployed or underemployed. While we might be recovering from the recession, it’s the longest and slowest recovery that our nation has ever endured. To make matters even worse, the cost of food and gasoline continue to increase so that our salaries just don’t go as far as they did several years ago. One study I saw the other day showed that Inflation has worsened this year, after the cost of oil, grains and other commodities spiked in the spring.
If this has driven you into debt
If you like many Americans have been forced to use your credit cards just to get by and now find yourself facing a huge pile of debt, you could consolidate all that debt and end up with just one monthly payment that would be smaller than the sum of all those credit card payments you’re facing now. However, this raises the question – is there a best way to do debt consolidation.
The alternatives
As you may know, there are several ways to consolidate debts. The first is to go to a consumer credit counseling agency for help. The second is to get a debt consolidation loan. The third is called professional debt consolidation. Fourth is to transfer all your high interest credit card debt to a new card with a lower rate. There is also filing for bankruptcy though, strictly speaking, that is not a way to consolidate debt.
How to determine which form of debt consolidation would be best
There are pros and cons to each of these ways to consolidate debt. So, the best way to determine which type of debt consolidation would be best for you is to compare the four of them side-by-side.
Debt consolidation loan
For example, a debt consolidation loan can mean a lower interest rate and a lower monthly payment but might take you anywhere from 7 to 10 years to pay it off. Plus, you might have to get either a second mortgage or a home owner’s equity line of credit, which could put your house at risk if you were to ever default on the loan.
Credit counseling
If you choose a consumer credit counseling agency, you will be assigned a counselor who will review your finances and help you develop an affordable payment plan. This person will work with your credit card providers to get your interest rates reduced and your payment plan accepted. This, too, should yield a lower monthly payment than the total of the payments you are making now. However, again, it could take you as long as seven years to complete your payment plan.
Transferring your credit card debts
The third alternative, to transfer all your higher interest credit card debts to one with a lower interest rate, should also yield a lower monthly payment. But you will still owe the same amount of money and may have to pay a transfer fee. And the only way you will be able to get out of debt any quicker is by increasing the amount of money you pay each month, which given your circumstances could be very difficult.
Professional debt consolidation
What makes professional debt consolidation better than these other alternatives for many families is that it can get both your interest rates and balances reduced to help you get out of debt faster. In fact, our debt counselors have helped our customers save thousands of dollars and get out of debt in 24 to 48 months. Plus, you will be offered a payment plan you can afford or you don’t have to accept it. If you need immediate help with your debts, call our toll-free number today. It could easily be your best way to do debt consolidation
National Debt Relief helps resolve debt for people nationwide who owe $10k+ in unsecured debt. Our experts negotiate with creditors so that clients pay only a fraction of what they owe and can become debt free in as little as 24-48 months. 
