The four most often-used strategies are balance transfers, personal loans, cash-out refinancing and home equity loans.
Here’s a quick rundown of the pros and cons of each method.
Their job is to negotiate a new, much lower amount for you to pay on the account.
In turn, you pay the debt settlement company a monthly payment and they pay your creditors, minus their commission or fee which they deduct from your payment.
But the strategy may not work for everyone since it can give the borrowers a chance to run up their credit cards again; so before you jump into it, look at the pros and cons to see if this method of debt consolidation suits you.When you hire a debt settlement company the first thing they will tell you is to stop communicating with your lenders or collectors.Their objective here is to get your lenders so desperate for some sort of payment that they’ll be more open to accepting a settlement deal.That is a sizeable, unwelcome gift to take home from school and it’s important to know how to minimize the damage.The good news is that federal loans carry a six-month grace period so there is time to develop a plan for dealing with them.