Debt Consolidation Services Explained:

Debt Consolidation using Debt Negotiation:
For consumers who are late on their bills, are unable to pay their monthly minimum payments and are facing bankruptcy Debt negotiation can help. When you have a legitimate financial hardship you may qualify for a debt negotiation program which could reduce your unsecured debts significantly. Typical debts that can be reduced are credit card debt, medical bills, store cards, gas cards and some personal loans that are NOT backed by an asset.

Debt Consolidation Loans:
For consumers with good credit, stable employment and income who have excessive high interest debt. If you are in serious debt and are having difficulty making your monthly minimum payments then a consolidation loan may be a VERY risky solution for you. This is because most loans use your home as collateral. If you don't pay the minimum due on the loan the lender could foreclose on your home. However, if you have solid, long term employment then a consolidation loan can be effective in reducing your monthly payments and eliminating your debts in a short time frame. Consumers need to be aware that a loan does not solve poor financial planning or spending habits. If proper financial planning is not taken seriously by the consumer they will likely find themselves back in debt within a few years.

Credit Counseling and Debt Management
Credit counseling services are more of an "advice" service, they counsel consumers on how to manage their money. They develop budget scenarios based on your income and expenses and can even provide financial education courses to help you navigate through the world of money management. It may turn out they they recommend the consumer to join a debt management program as described below.

Debt Management Programs are a type of service that helps you adhere to a recommenced budget, many times offered by a credit counseling service. For example, in a debt management program (DMP) the service may be able to restructure all of your debts. Lowering interest rates, eliminating late fees and using a variety of techniques to lower your monthly budget down to a single monthly payment that you can afford.

Foreclosure Prevention Services

Many American's are having difficulty making their mortgage payments or are over 30 days late. Millions have received foreclosure notices this year alone. A foreclosure is the process by which a bank repossesses a home due to a default on loan payments. Foreclosure proceedings can start as soon as 30 days after a missed payment. Foreclosure mitigation services are familiar with all the options available to home owners in their state to save their homes from foreclosure. In essence they work with your lendor to work out a solution to bring your payments status back to current without having your home go into foreclosure or be sold at auction. This can involve restructuring your loan to include the past due amounts back into the loan, extending the loan, or even forgiveness of the amount due. Banks due not want to own millions of homes that they can't sell, so they are willing to negotiate with home owners in order to keep them in the home and keep the payments coming. It is all negotiable.

If you are trying to prevent a foreclosure please visit iHomesaver.com for a full description of mitigation services and to get in touch with a home foreclosure mitigation service who works within your state.

Get a free, no obligation evaluation of your options by an approved debt relief provider by completing the request below. The consultations are private, free and are conducted with respect.