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Category Archives: Debt Consolidation
Most so-called credit counseling or debt consolidation companies cannot provide you with benefits that you get by negotiating with your creditors yourself or with an attorney. Even legitimate agencies won’t give you the same fresh start and legal protection that bankruptcy can.
We’ve established that bankruptcy and failure are in no way synonymous. So, how does it work? How can bankruptcy be used to get on the path to financial and personal success? To better understand it, let’s break down bankruptcy and discover what it’s all about.
Fortunately, the days when Americans could be imprisoned for failure to pay private debts is long gone. That’s good, since the average American had $6375 of unpaid credit card debt in 2017 – over $1 Trillion in total debt.
It was common for those who ran the debtor’s prisons to charge their prisoners for room and board, adding to the debt they were attempting to work off. This effectively created a self-perpetuating debt cycle, trapping those that fell into it in indentured servitude – what we would call slavery.
Humans have a long and complicated history with debt. It’s only recently that bankruptcy has become a widely available option. Did you know that credit and debt actually predate money itself? In his book Debt: The First 5000 Years, David Grabel takes a deep dive into the history and consequences of debt and credit for human civilization.
Let’s say you are facing financial issues and even might be to the point where paying the normal bills becomes difficult. Now (if not before) is the time to start thinking about solutions before the options become much more limited and the problems that much bigger. Unfortunately we have seen this happen all too often!
As debt continues to skyrocket (again) the number of people being scammed by supposed reputable companies continues to be a problem.
The process of debt consolidation involves housing many outstanding debts under one loan. It can help to secure a lower interest rate for all of your debt with the ease of making just one payment because now it is only one larger loan. Debt is money owed by you (the debtor) to a second party (the creditor).
You have a lot of debt and you get a phone call about debt consolidation? Is is too good to be true?
Have you gotten a phone call, email or snail mail offering to help you settle your credit card debt? Beware it may be a scam!