Can I Write Off Credit Card Debt On A Debt Consolidation Loan?
By Janet Peterson on March 17, 2010, 6:01 am Posted in Business NewsMore Americans than ever are feeling the economic crunch crashing around their heads. So many of them owe over $10,000 in credit card debt and the numbers keep rising. Add to all of that, they have car payments, a mortgage payment or rent to pay.
A large number of these folks are hearing a great deal about the help the government is offering the debt ridden. The government has given the money moguls bailouts so consumers have a chance at getting some debt relief in the form of debt consolidation and debt settlement.
What’s The Big Question
One of the big questions many that owe these debts are wondering is “can I write off credit card debt on a debt consolidation loan?”
First you need to know what a debt consolidation loan is if you aren’t already aware. It’s a new loan that is usually secured against a home. You use this loan to pay back the unsecured debt you owe, such as credit card debt. The reason you’d take out this type of loan would be so that you could combine the many payments you make monthly into just one monthly payment.
What Are The Advantages
One of the biggest advantages is that the interest rate on your consolidation loan is less than the interest rates on your credit card payments. You have a longer period of time to pay the loan back, therefore leaving you a little more money each month. Another advantage to a debt consolidation loan is it won’t affect your credit score in a negative way such as bankruptcy would.
So the real answer to can I write off credit card debt on a debt consolidation loan is not really a yes. You will pay back the actual loan but with less of the interest and penalties the creditors would charge you.
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Are you overwhelmed with HIGH INTEREST RATES that make it difficult to reduce your balances with minimum payments? If you are in a situation where you feel that you cannot and will not be able to pay back your debt, don’t worry, there are programs out there that can cut your debts in half and reduce your monthly payments by up to 50%………..You should never be ashamed to seek help, no matter your reason for being in debt and no matter how much debt it is. Millions of Americans are struggling with their debts right now; that is why Congress has passed new legislation to keep creditors from taking advantage of consumers. Contrary to what your creditors will tell you, there are options out there for you. Don’t consider bankruptcy until you’ve looked at all of your options. There are companies set up to explain these options to you, FOR FREE. One of them is Consumer Debt Advisors (www.cdadebtsolutions.org), they’ll let you know what option is best for you and offer a free consultation to see if you qualify. Don’t feel trapped or let the creditors control you, call Consumer Debt Advisors at 877-548-5403 or try them online at http://www.cdadebtsolutions.org. Their website has a lot of information about what alternatives there are to bankruptcy or paying the 25% interest the creditors are charging you.
The debt consolidation loan option is certainly one to consider during healthy economic climate. However, in today’s economy most homeowners have negative equity (upside down)on their homes so a HELOC or real-estate secured loan doesn’t exist.
In most cases, consumers are seeking viable alternatives for credit card debt resolution. An option known as “debt negotiation/settlement” also known as Consumer Law program seems to offer the most savings when compared to other services. It also provides consumer protection from abusive collection practices as well.
Debt consolidation would seem to be becoming as a potential option for people dealing with unsecured debt. I have been following the market pretty closely and it is difficult to understand what is delivered for the investment in debt settlement. I know there are a large group of debt companies available in the market that deliver fantastic services and the debt cusotmers truely get great benefit, but I also know that there are a number of service providers marketing their services that are focused on collecting new customer fees and signing up new members. No doubt this is why there seems to be brand new govt regulation in the debt consolidation industry. My nephew used a debt settlement operation and is very very very satisfied with the overall results.
And I thought I was the sensible one. Tanhks for setting me straight.
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Excellent read, I just passed this onto a colleague who was doing some research on that. And he just bought me lunch as I found it for him smile Therefore let me rephrase that: Thank you for lunch!
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