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Article Title: Knowing Your Debt Consolidation Options is Important
Author: Daniel Major
Category: Finance, Debt Consolidation, Personal Finance
Word Count: 470
Keywords: debt consolidation options, credit card consolidation, debt 
consolidation, debt, consolidate debt
Author's Email Address: [email protected]
Article Source: http://www.articlemarketer.com
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We are living in very tough economic times and it is at times like these that 
people begin to realize just how much debt that they have and wonder if they 
are going to be able to keep up on their payments. These concerns grow as items 
become more expensive and people start losing their jobs. Something that is 
happening around the United States even as you read this.

For many people, debt consolidation is a viable option as they get further in 
debt or are unable to pay their current debts. If you are one of those people 
who are looking for debt consolidation information, then you should read this 
first and make sure you know exactly what you are getting for your time, 
trouble, and yes, money.

Debt consolidation means different things to different people. That is because 
debt consolidation can take more than one form. Firstly, there is debt 
consolidation through credit counseling services. This is when you can 
consolidate your credit card debt into one payment made directly to the credit 
counseling service.

They will provide you with extensive debt consolidation information and once 
you sign on with them they will negotiate with your creditors to eliminate your 
interest payments and close your accounts. Often they will negotiate smaller 
payments as well to get your monthly payments into a more manageable place 
based on your income and obligations. Generally, there is a modest monthly fee 
for credit counseling services, which are included in your monthly payment.

Secondly, there is debt consolidation by means of credit card consolidation 
loans. In most cases, this loan is in the form of a home equity loan. Most 
people with large amount of debt cannot get a personal loan, especially if they 
have bad credit. However, even if they have good credit, the banks will 
consider their debt to owe ratio to determine their loan worthiness and too 
much debt means no loan money. Getting a home equity loan, however, has a down 
side. It means that until the loan is paid off, you no longer have equity in 
your home, so perhaps you should find other debt consolidation information 
before resorting to a loan.

Lastly, there is what is called credit card debt settlements. This is when a 
company negotiates with your creditors to reduce the amount that you owe to 
them. The up side here is smaller payments. The downside, however, is the fact 
that you have to pay the total negotiated amount up front and it is often 
reported as a settled debt on your credit score, which counts as a negative.

Of course, there is always the option of settling your own debts by using the 
Internet to find as much debt consolidation information as possible. Many 
people are capable of working through a system on their own, if they just know 
how.

For more information on debt consolidation and about a little known method of 
debt elimination so effective at eliminating debt that the financial 
institutions would rather you knew nothing about, visit: 
http://www.creditcardconsolidationloanssite.com
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