The reasons for finding oneself in financial trouble are indeed varied, but there are two facts that remain - it is happening all across the country and every person who finds themselves in that unpleasant situation feels like there is no way out.
Turning to the internet, they find a myriad of offers.
Somewhere amongst all the hype is an excellent solution for many people to get out of debt - online debt consolidation.
What is debt consolidation? It is simply a way to combine all outstanding debt into one payment.
How? By taking out a loan and using that to pay off a number of smaller loans.
This differs from debt negotiation or debt settlement where an agreement is made to reduce the amount of the overall debt in exchange for regular payments.
They are similar in some ways and in some instances overlap; however, consolidating your debts online has some very distinct advantages over other debt relief options.
• Better deals - online debt consolidation websites and companies deal in large volumes of loans.
This allows them to get much better deals, resulting in slightly less interest payments for the customer.
While the percentage rate may look like fractions of a percent, that translates into real dollars.
Also, it is possible for online companies to access a far greater number of loan sources than the local debt consultant.
• Simpler and more convenient - searching the internet is far easier than driving for hours around town and talking to a number of businesses.
Additionally, consolidation greatly streamlines the debt repayment process - one monthly payment instead of juggling numerous credit card companies and interest rates.
Also, calling up each and every credit card company or place that is owed money to beg for special consideration is avoided.
• Online debt consolidation can combine aspects of other debt relief programs - many consolidation companies will negotiate the debts that are being paid off in order to help reduce the total payoff amount.
It is not exactly the same as debt negotiation or debt settlement; however, it can function like those programs.
In the end, the customer is left with a simple monthly payment.
Finally, online debt consolidation is not for everyone or all kinds of debt.
However, for those who are looking for a way out of the deep hole they have dug or the unlucky situation they have found themselves in, it can be a really viable option.