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Bad credit debt consolidation is the first step to debt freedom

September 17th, 2010 by jannyflcn

A good debt consolidation program can definitely be a way for you to become debt free. It’s one of two ways available to consumers. The other is bankruptcy. Both are very effective ways to address debt. One can consolidate unsecured debt and the other eliminates it. As a first step and one that is less intrusive into other parts of your life is to start with bad credit debt consolidation. This allows you to take the first big step toward getting debt free. If it doesn’t work you can move on to the next step which is bankruptcy.

On the internet you can find free non profit consumer credit counseling as well as for profit companies. You should generally talk with several of them and find the one that makes the most sense when it comes to working with your specific needs and variables. A good debt consolidation program is one that fits your needs and what you are able to do. It’s important to remember that if you start a program to consolidate unsecured debt and don’t complete, the results can be disastrous. All the advantages you had while on the program will go away and you will find creditors can jump back onto your case with a vengeance. So you definitely don’t want to start a debt consolidation program if you aren’t going to be able to stay on it and complete it.

It’s also important to remember that to consolidate unsecured debt is not the same as consolidating all your debt. That debt which has a lien like the mortgage on your home or the note on your car is excluded. Unsecured debt are those debts that don’t have a lien like credit card debt, medical bills, phone bills, payday loans and other similar bills. These are generally the bills with the very high interest rates.

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This entry was posted on Friday, September 17th, 2010 at 2:57 am and is filed under Business, Financial Markets, Financial Planning, General, financial education. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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