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It's no secret that millions of people are literally drowning in debt, and many are desperate for solutions to salvage their finances. Not surprisingly, they are drawn to television and internet ads and articles offering free information on debt consolidation. One of the major methods provided is loan consolidation of all obligations into one single loan and single monthly payment. The problem with all the hype is that sometimes free consolidation advice is worth exactly what you paid for it!

Debt consolidation can take the form of a secured or unsecured loan. One of the dangers is that a debtor may jump at lower payments and turn unsecured debt into a mortgage loan against their home or other property, get behind again, and lose everything. Others who owe don't even have the assets to get a secured loan and can't even choose that option.

Some lenders are dishonest or shady. They will take advantage of your desperate situation to charge you exorbitant interest rates and sneak in other hidden fees and charges in an effort to make money off of you. Protect yourself by going to a non-profit debt consolidation organization for aid. Make sure you do your homework and make sure the non-profit you choose is reputable. Some are "not for profit" in name only, the top executives making huge salaries so they can claim they make no profit.

A nonprofit loan consolidation may not be the best deal you can get, so investigate such a deal as thoroughly as you would any deal from a for-profit company. If you have student loans, you may be able to qualify for consolidation loans sponsored by the federal government. You may get a good deal from any bank you already deal with, since that bank knows you better than other institutions.

If you can find a good source for free debt consolidation advice, there are many advantages. These companies may buy loans at a discount and be able to reduce the total owed, and consolidation means only one payment nearly always less than the total was before, and at a lower interest rate, even unsecured. This reduces stress and calls from collectors and helps rebuild your credit.

Those organizations will all give help in the form of credit counseling and budgeting advice. Their goal is to keep you out of similar troubles in the future. A good company will also know when bankruptcy is the only viable option. If a company vehemently refuses to consider bankruptcy as a choice for you, you should probably keep looking for help somewhere else. To help you get back on your feet, some companies deal with consolidation or even talk with your debtors in effort to reduce the amount you owe.

About 50 million people in the US are already in credit and debt trouble or on the brink of it, so it is a huge problem. For many, debt consolidation is the likely answer and finding the widely available free advice is a good first step out of trouble. Ignoring the problem can't work and only makes things worse. Check credentials and compare the services of several debt relief companies before you choose.

For people literally drowning in debt, loan consolidation of all obligations into one single loan and monthly payment may hold the key to debt resolution. Finding free CONSOLIDATION ADVICE that will offer credit counseling and budgeting solution is a great first step. However, whether "for-profit" or "nonprofit ", not every consolidation companies are equally trustworthy. Hence, it is essential to first investigate the credentials of several debt resolution firms. Debt consolidation companies are often willing to buy loans at a discount, help get lower interest rates, and reduce the total amount of debt owed which can be settled in single monthly payments that is almost always lower than previous payments.