Debt Reduction Programs

Written by Liza Hartung
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Debt reduction programs can be a great idea for anyone with debt. You may be thinking that this is the same as a debt reduction loan, but it is not. In fact, there is no loan involved at all. You don't consolidate any of your bills. You still pay each one that you have separately. The only difference is that you are working with lowered interest rates. Let me explain.

See, creditors would rather get some money than no money at all. Therefore, after careful reviewing, some places may agree to lower your interest rate so that you can make your payments and eventually pay off your debt. This is something that you would bring to a counseling service and they would help you figure out. If you know how to do this on your own, then you could make some money helping others.

Reasons for Debt Reduction Programs

Some of you may want to look at debt reduction programs as an option. You may not be sure if it is what you want to do, but when you see what can happen you can choose what to do with your debt. Compare what you would be paying this way to what you would be paying if you got a loan and had to pay one monthly bill. I say go with whichever one is lower. However, there may be other reasons you would want to do one over the other.

One reason for choosing debt reduction programs is if your credit is really bad and you can't get a loan or a credit card to do a balance transfer. If your credit is awful and so is your financial situation, you are likely to get your interest reduced so that the creditor will still be able to make some money off of you. Just make sure you make your payments on time.


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