Are you burdened with debts? Are you finding it harder each month to meet the minimum payments for your debts? Your debts are piling up every month, creditors' calls make your feel very stressing; and you are praying every day hoping some miracle will happen and get you out of debt. If you in such bad debt situation, accelerated debt consolidation could be the best solution for your debt dilemma.
In the debt consolidation, you are combining multiple, high-interest loans (debt) into a loan with a single monthly payment on a lower interest rate. Debt consolidation allows you to pay down more principle each month, often lowers monthly payments, and allows the balance of your debts to be cleared faster.
Your debts can be categorized into two types, unsecured debts and secured debts. Unsecured debts are the money you borrow from your creditors without the need of any collateral. Common unsecured debts include credit cards and personal loans. Secured debts, on the other hand, are loans or finance packages that are only approved with a pledge of your collateral in exchange for a certain amount of money and the creditors have lien on the pledged collateral. Common types of secured debts include mortgages, car finance, and loans on personal property. If you fail to pay your creditor in this case, you will lose your car or house or property.
Accelerated debt consolidation is quit similar with regular debt consolidation but it only counted in your unsecured debts. Although there is some exception, most accelerated debt consolidation programs will not include your secured debts; they will only take your unsecured debt.
When you enroll into an accelerated debt consolidation program, the counselor from the debt consolidation company will first understand your current financial situation and they will group all your debts into secured and unsecured debts. The counselor will only works on your unsecured debt and proposes a repayment plan after communicating and get the term and conditions from your creditors.
If you have a relatively bad credit score and unmanageable, massive debts, accelerated debt consolidation is probably your best option because this type of debt consolidation only takes your unsecured debts, which are in general at smaller amount if compare to secured debts (home loan or car loan amount normally is larger than credit card balances) and it can enabled you to put a debt consolidation plan in place with a short period of time, regular debt consolidation normally takes longer process.
Most of unsecured debts are high interest debts (credit card interest rates may range from 10%-18% and a personal loan may have interest rate as high as 12%), hence it good for you to put a plan to handle these high interest debts as soon as possible to avoid further worsen the situation. And an accelerated debt consolidation can be your best choice on this purpose.
In Summary
Accelerated debt consolidation is slightly different from regular debt consolidation; it only takes into consideration on your unsecured debts. The accelerated debt consolidation can be your best option if you are at the critical financial situation and urgently need a plan to put in place and get your debt in control.
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Frequently Asked Questions
Suppose you have debt can the person you owe money ...
By: Cathey | 10-07-2008
Suppose you have debt can the person you owe money too attack a joint checking account if that is all the money that goes in the account is from socail security?
Debt settlement
By: Dorothy | 10-07-2008
should i negotiate with credit card co. or use a debt settlement co.
Short term loans advantages.
By: mani kanna | 27-06-2008
Am made to understand that short term loans are the way to go for any one out to get themselves out of a financial fix,can you validate that? .................................................... mani kanna loan-digger.co.uk/
Please help.. i have lost my money !!!!!
By: kiran09 | 13-06-2008
I have ordered something and Cancelled immideately... But the pay ment has already gone from my credit card, after that i received a email from CCNOW saying that my credit card was not charged.. can anyone please tell me when will i get my money back.
How long will it take to get my credit score back ...
By: homanab | 06-06-2008
How long will it take to get my credit score back to where it was if I had to short sale my home, but still paid all of my other houses payments and all of my bills on time?
Credit report states "foreclosure"...
By: wyett717 | 05-06-2008
We sold our house in December 2007 when we moved out of state. The mortgage was satisfied and paid in full in December. We are looking to purchase a new home, and I just noticed that our credit report says "Foreclosure 01/08; Closed; Account paid" in reference to that account. There was NOT a foreclosure. Is this standard wording for the satisfaction of a mortgage, or are we in for a major fiasco getting this off of our report?? Thanks!
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