Chicago, Illinois (PRWEB) August 26, 2009
Debt consolidation & debt consolidation loans are something that more and more consumers are wondering about and considering these days as the U.S. recession drags on. These types of debt relief instruments are advertised very heavily on television commercials by loan companies. Totaldebtrelief.net today explains the ins and outs of this hot topic.
Debt consolidation essentially describes a loan repayment plan that is designed to allow the consumer to get out debt in a quicker fashion. In many cases, a home equity loan may be taken out as part of the debt consolidation plan. And this is basically swapping unsecured debt for secured debt, with the key benefit being a lower interest rate and an overall lower monthly payment.
In a typical debt consolidation plan, a debt management company will negotiate on behalf of the consumer with their creditors. The goal is to achieve a lowered interest rate, smaller monthly payments, an extended payment term, and the waiver of penalties and late fees.
Another option which consumers have available to them in addition to debt consolidation and debt consolidation loans is a newer method of debt reduction called Debt Settlement. In a typical debt settlement scenario, a debt settlement firm will negotiate on behalf of the consumer with the consumer's creditors in an attempt to gain a great reduction in the total amount(s) owed. Debt settlement can achieve enormous reductions in debt, typically as much as 50% - 75% off of the original debt amounts.
The benefit to both a debt consolidation & a debt settlement plan is that they both are able to achieve lower monthly payments and in most cases reductions in debt without the need for filing for bankruptcy and risking all the negative consequences that come with a bankruptcy filing.
Totaldebtrelief.net offers consumers a free debt evaluation. They can take advantage of this offer at http://www.totaldebtrelief.net/.
Totaldebtrelief.net has been a leader in the debt relief field for over 5 years. Their debt management professionals educate consumers on all the options available to them to get out of debt. Totaldebtrelief.net helps consumers make the most informed decision possible so that they may get their financial lives back on track.
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