Get Out Of Debt

You're drowning in debt, credit card bills are piling up and you are highly stressed. Over 70% of the American population is seriously in debt. There are debt consolidation companies out there who claim they can help consolidate your payments and work with your credit card companies to get your interest rates down; but beware of such claims. I cannot count how many companies like these have gone under or have been in a negative spotlight because they have not followed through with their claims. Many people have lost money and ended up having to file bankruptcy because a debt consolidation company burned them. Don't get me wrong there are some good companies out there that will help you with your credit and debt problems, but you need to research different companies in order to find a reputable company. The first thing you should do is be sure to verify with the Better Business Bureau that the company doesn't have any complaints on record, if they do this should raise a "red flag" immediately. Another option is to check with family, friends and colleagues to see if they have used any of these companies or if they know of a good one.

You should be aware of:

1. If you are having them pay your payments for you it will show up on your credit report. This usually lowers your credit score because creditors and financial institutions see it as one step before bankruptcy. Make sure you know what you are getting into and understand your contract completely.
2. Explore the option of a home equity loan or line of credit. Banks usually offer better rates on home equity loans plus they have an advantage; they are tax deductible. If you have equity in your house and your credit history is fair, a home equity loan could be a great alternative for you to be able to manage your debt and pay it off quicker. There are so many programs available that there's a good chance you will be able to find one that will work for you. You need to choose a reputable bank or mortgage company and make sure you select a trustworthy loan officer.
3. Credit unions are also a good option because they want to loan money for the interest and most of the time the loan officers aren't expecting a big commission check.
4. Call up your credit card companies and try to negotiate a lower interest rate. Second, check to see if you can transfer balances to a lower rate. Start with the highest interest rate and go down.
5. A mound of debt doesn't have to mean bankruptcy is the only choice. If your debt is out of control and you think you have run out of options then review the suggestions listed above and see if there is one that can work for you. Don't quit, with a little effort and research, you will be able to get your finances under control.