The Hazards of Seeking Debt Consolidation Online

As the number of people online continues to grow, more and more people are turning to the internet as their primary source of information. When it comes to private matters such as personal finance, people are even more likely to seek the anonymity of the web. As a result, millions of consumers who are in debt turn to the internet for answers: it is estimated that the term “debt consolidation” is searched for nearly 3,000 times a day. Unfortunately, many consumers are unaware of the dangers of searching the web for debt help or debt consolidation.

The large amount of people searching for financial help online has made debt consolidation websites a booming business. The large market has opened the door for misleading business practices. Many sites claim to offer a variety of services such as debt consolidation, consumer credit counseling, debt settlement, credit repair, or refinancing and consolidation loans. Often, the site promises a free debt consolidation quote for consumers who enter their contact information. Most consumers believe they will be contacted by an employee of the company who owns the website. However, more often than not, the consumer’s contact information has just been entered into a lead capture page, usually operated by a marketing firm. This marketing firm then sells this information, or “lead,” to any company that is willing to pay for it! The customer has no way of knowing that this information is sent to a legitimate business.

When the average consumer gets online to look for debt help, the majority of the time he will turn to a search engine. As a result, the first few websites that are returned for a particular search term get the majority of the web traffic. While many search engines constantly try to make search terms relevant and immune to manipulation, many companies are still able to pay their way to a good ranking. Many websites, particularly the “lead capture pages,” are able to pay for links and other “optimization” techniques that translate into high search engine placement. Because many legitimate businesses are oblivious about the impact of search engine rankings, there is a high probability that consumers searching for debt consolidation online will fall victim to some sort of misrepresentation.

How To Get Debt Consolidation Online

Many people experiencing difficulties with debt and seeking professional help will be wondering about the best way to get debt consolidation online. It’s true that most mainstream businesses now have an online presence, and the growing debt management sector is no exception. The advantage of looking for something online is that dubious businesses tend not to do well on the search engines, so companies which are prominent in the natural search engine results will probably be well regarded and professional.

When getting advice for debt consolidation online you’ll be wanting advice on two main options. The first option is a straightforward consolidation loan. While this seems an attractive proposition at first it does hold terrors a bit further down the line; even though the idea of consolidating all your payments into one big payment with a lower interest rate may appear to be good, that loan is more likely than not to be secured against your property, so if you default your home will be at risk. So unless you can really afford to meet those payments over the long term, don’t even consider it.

The other option when you seek debt consolidation online is an actual debt management plan with a qualified insolvency practitioner or IP. In the United States this is known as a debt consolidation plan and in the United Kingdom it can be referred to in its highest form as an individual voluntary arrangement or IVA (known as a Protected Trust Deed, or PTD, in Scotland). An IVA is an immensely powerful instrument and is legally binding. In recent years it has become known as the painless alternative to personal bankruptcy, with none of the stigma associated with that.

What such a plan does is to take the whole amount of the debt and reduce it by up to 70 per cent (some businesses have adverts claiming to reduce this by up to 95 per cent but this is extremely unlikely and you should give these companies a wide berth). As long as more than two thirds of your creditors (by capital sum) agree to this then the debt is slashed by this amount and you will suddenly feel the burden of most of your debt disappear.

Your debt consolidation online company will have skilled negotiators who will liase with your creditors. Once such a plan is put into effect it will be legally binding, and nobody apart from your IP will be allowed to contact you about your debt. That includes your creditors or any agents they may appoint, including debt collectors and the like. If they contact you about your debt, even if it is a phone call made by mistake, that is against the law and you may then take them to court over it. They are simply not allowed to contact you again.

Your debt consolidation company will then work out an affordable monthly payment and apply this to your everyday household budget. After an agreed length of time, usually five years, your debt will be paid off completely and you will be able to start rebuilding your credit rating again. You will actually be able to start living a normal life as soon as the consolidation plan is put into effect, from day one.

Debt Consolidation Online – Is it Smart to Consolidate Debts?

Using online sources for debt consolidation is a smart choice to realign your finances quickly and safely. Many people are educating themselves with the different debt relief options, and making the best decision available, by choosing a consolidation as their number one choice. The process is fast, and financial relief is experienced almost immediately. Using online companies only enhances the application and approval process through their efficient customer service guarantees. Online resources are available for their clients at any time of the day or night, which is a very beneficial strategy for busy consumers. The sites are packed with helpful information concerning the process, and customer testimonials are also included, regarding their personal experiences, and positive financial outcomes.

It only takes a few minutes to complete a preliminary application at an online consolidation site. Most sources offer a debt calculator where interested clients are afforded the opportunity to input financial information, and gain a tentative reduced pay off amount for their debt. This quick calculation will give further affirmation for the potential, positive results that are possible when using this type of bill repayment system. Financial assistants are ready and able to assist with any questions or concerns, regarding the process by means of online chats or personal phone calls. The entire loan process can be handled without leaving your home when using these secure websites.

The financial representative assigned to your case will contact each creditor that has been listed for inclusion in the consolidation loan. Reducing balances through skillful negotiations will be achieved through interest reductions, and the elimination of late fees and penalties on loan balances. After the negotiated pay off amounts have been agreed upon by all parties, a detailed repayment plan is presented for customer approval. A savings of at least 50 percent is the first most obvious benefit. More affordable monthly payments, made directly to the consolidation company, with a lower fixed interest rate, and a shortened length of repayment time, is included in this total debt relief package. On average, most debt can be completely wiped out in one to three years, depending on the loan amount.

Eliminate the stress of trying to manage your budget with too little money and too many bills. Consolidate through online sources and begin the process to ensure immediate financial success. Put an end to credit card debt and high interest rates forever, decide now how you want to be tomorrow.