http://www.prodebtreduction.com/debt-reduction/debt-reduction-programs.html Debt reduction programs come in many different forms because of the many different kinds of debt there are, as well as the different situations of debtors. en-us Sat, 26 Jul 2008 15:00:00 EDT Sat, 26 Jul 2008 15:00:00 EDT Weblog Editor 2.0 If you want to learn more about the various debt reduction programs, you've come to the right place. Debt Reduction Programs for Everyone Ten years ago, if you were in a lot of debt, the only choice you might have had was bankruptcy. Fortunately, the debt reduction industry was born and now you have many other options that don't leave a black mark on your credit record. Most of these debt reduction programs can have you out of debt in about five years. Some take less time, some take more. Below, we've outlined some of the most common debt reduction programs and given a brief description of each: Debt Consolidation - The most popular form of debt reduction. This is a program through which a debt consolidation professional negotiates with your creditors to get you much lower interest rates and to try to get your balances reduced. They even try to get past late fees, over-the-limit fees, etc. removed. At $20-$30 each, this can add up fast if you've had a lot of them. (Factoid: Late fees increased from $1.7 billion in 1996 to $7.7 billion in 2003.) Once new balance amounts are agreed upon, your debt consolidation professional combines all of your monthly payments into one, and you make one monthly payment to the debt consolidation company rather than several monthly payments to your creditors. Because of the reduced interest rates and possible reduced balances, you can be debt free in about five years. Debt Settlement - Allows you to settle your debt at 30-50 cents on the dollar, but may have an impact on your credit report. (The jury's still out on this one.) Under this type of plan, you usually have to be able to pay the new, reduced amount upfront or else have it paid off in a year. Some companies will extend it to three years though. Debt Consolidation Loan - Under this plan, a lender will give you a loan to pay off your unsecured debts. Then you pay the loan back at a much lower interest rate than what you were paying to your creditors. Because of that, you can have the loan paid off in about five years. Stop using your credit cards and racking up other unsecured debt while you're making your loan payment and you can be totally debt free in five years. Debt Consolidation Mortgage - Allows you to borrow from the equity in your house to pay off you unsecured debt. The amount is added to your mortgage payment, so if you don't think you can afford a higher monthly mortgage payment, don't do it. If you miss payments, you stand to lose your house since that's your collateral. Student Loan Debt Consolidation - Combines all of your student loans into one new loan and locks in a much lower fixed interest rate than what you're probably paying now. Your monthly payment is cut nearly in half, too, because the duration of the loan is longer. Within some of these debt reduction programs are other types of programs. For example, if your debt is mainly credit card debt, credit card debt reduction might appeal to you. Credit card debt reduction programs are a geared specifically towards those with that particular type of debt. If you're looking for debt reduction programs with a spiritual twist, look into a Christian debt reduction company. The options go on and on. With so many debt reduction programs to choose from, we suggest doing some research on the Internet or calling your creditors to see if they can advise you about which ones to work with. When you do finally get started with the perfect debt reduction program, you will be on your way to joining the ranks of the debt free. Get to know the debt reduction plans that are available to you and find the one that will take you to your debt free dream! Sat, 26 Jul 2008 15:00:00 EDT http://www.prodebtreduction.com/debt-reduction/credit-card-debt-reduction-programs.html Credit card debt reduction programs and your future. en-us Sat, 26 Jul 2008 15:00:00 EDT Sat, 26 Jul 2008 15:00:00 EDT Weblog Editor 2.0