For women who are facing debt problems, there are a number of options to help them with managing money.
Typically credit counseling can help people liquidate their debts in three to five years and save them thousands of dollars. Consolidated Credit takes over a thousand calls from people looking for help each day. The counselors conduct a budget analysis and find the best direction for a particular situation.
In a recent posting on singlemindedwomen.com, writer Eric Wood noted that debt consolidation may be one option when dealing with credit card debt. Debt consolidation works by taking a person’s debt and putting it into one loan.
The article noted that unlike credit card debt, which are unsecured loans, debt consolidation loans often require a person to put up collateral. That collateral often comes in the form of a home equity loan. Consumers borrow against the value of their home in order to pay off their other debts, and then pay off the home equity loan.
Recently, an article from ARA Content also noted consumers should be aware that debt consolidation does not get rid of a person’s debts, but rolls them into one payment.
The risk involved is that if the consumer doesn’t pay off their loan, they may lose their home.
“Therefore, for debt consolidation to work and be successful, you must have reached a point where you are on sufficiently stable financial footing to be able to continue to make your new payments – because the stakes are high,” Wood noted.