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Learn several little-known credit repair techniques that can be used to legally remove bad credit from your credit report, even if it's accurate. |
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| Become Debt Free with our Debt Consolidation and Credit Counseling Program.
Make bad credit a thing of the past and make your way to financial freedom. With our debt management program, you will pay off your credit card
bills and other debt with little or no stress at all. |
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- Consolidate your high-interest debt.
- Consolidate high-interest debt such as credit cards.
- Your overall monthly payments will be reduced and may even be tax deductible.
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| Get online legal help to repair bad credits affordably.
Get your free credit report online, offering repairing bad credit information and monitoring, everything repairing bad credit related, view your report online in minutes.
The fact is that if your credit needs repairing, one person
is in the best position to fix it -- YOU
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| Credit
Card Consolidation Deal |
When we hear that someone has a credit card consolidation deal it has a great "Whoosh! Soon-it'll-all-be-gone" mannerism to it. To say nothing of an "I'm taking charge!" confidence. These days we get bombarded with ads from companies saying that they'll consolidate all our debt. What, actually, does that mean? Here's how, under ideal conditions, it works. A company that is into credit card consolidation deal usually offers both "credit counseling" and "debt consolidation" services -- goes over all your expenses with you and decides what you can afford to pay, TOTAL, per month toward your debts.
Then the company that represents the credit card consolidation deal negotiates with all your creditors (this only works for unsecured debt, not car loans and mortgages), for a debt consolidation deal getting down your "minimum" payments and even lowering your interest rates. One company that specializes in debt consolidation online claims it can "achieve" the following rates "instead of the usual 18 percent to 20 percent: Chase Manhattan 9 percent, Citibank 8 percent, Bank of New York 6 percent, Bank of America 0 percent (that's right, zero percent interest!" Credit card consolidation dealers and negotiators firm functioning as double-service middlemen. They're doing the collecting for the creditors, and they're also negotiating for you. As for the credit-card companies, they pay the non-profit companies in the form of "contributions" and thus are able to create great tax write-offs for themselves, thereby offsetting some of the loss they incur in reducing their staggering rates.
What does the credit card consolidation deal achieve for you? Once you've set up such a program, the creditors are supposed to stop calling you. Your counseling or debt management company is supposed to deal with them. So you see, under ideal conditions, it can be a win-win-win situation. Everyone gets something out of it -- the debt management dealer or consumer counseling company (it's all the same thing), the usurious creditor who's been crippling you with its ridiculously high rates and now will just make a decent profit off you, and you. But a few points must be remembered: most debtors attempting to obtain a credit card consolidation deal loan face issues with unsecured debt, such as credit card bills.
If you get a credit card consolidation deal against equity, a second mortgage, it represents a secured debt. This becomes of critical importance if things go from bad to worse. With unsecured debt a chapter 7 bankruptcy can discharge the debt, completely relieving the individual of the obligation. But in case of secured debt, such as a second mortgage, even in a bankruptcy situation, the creditor has the right to seize the collateral if the loan cannot be repaid. When speaking about a second mortgage that would mean foreclosure on the property. You can do the credit card consolidation deal all by yourself for nothing, or you can hire someone to do it for you. If you hire someone, be sure to get a written contract of the debt consolidation deal in which they spell out exactly what they're going to do for you. |
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