Bill Consolidation Quote

Learn How Much It Will Cost You To Get Your Bills Under Control Again

What is unsecured debt?

What kind of debt to you have, secured or unsecured? One is like the a mortgage; the other is like credit card debt. 'Unsecured debt' is debt independent of property, unlike a secured debt that grants the creditor the right to secure a debtor's property to satisfy their obligations, in case they default. In the case of unsecured debt, the only remedy the creditor has is to sue you and obtain a judgment. If what you have is unsecured debt, bill consolidation can help you get your bills under control, or a bill workout can help you eliminate your debt. If you choose to go with bill consolidation, you may find that, between the interest on the loan or the 'points' you pay, the cost of consolidation loans adds up. If you choose to go with a bill workout, you may elect to retain a professional's services.

What does bill consolidation offer, and what's debt workout?

Bill consolidation is basically a reorganization of your debt, by which you intend to pay your creditors in full. You may have the assistance of a credit counselor, or you may take a bill consolidation loan. A debt workout, however, is a negotiated settlement of your credit card debt, in which you may agree with creditors that you'll only pay a percentage of the debt. As just an example, you may come to an agreement with the credit card company to which you owe $10,000, that you'll pay only $4,000.

Can I do this myself, or do I need a professional's help?

Specialists at debt management firms and bankruptcy attorneys are both debt reduction professionals, who can initiate a settlement on their client's behalf-or you can do it yourself, but you'll want to know how to negotiate a debt settlement, and what a proper debt settlement should be. When negotiating with credit card companies, the point is that creditors have standard operating procedures to be followed.