But for those of you that have already fallen into a large debt situation, there is help. It’s called debt consolidation .

Debt consolidation can and does help a lot of people manage their collective debt. In the process of debt consolidation, several credit companies get together and put all of your debt into a huge pile, so to speak. They will then proceed to add up any bills that you’ve accumulated over time and will hopefully develop one solitary payment that’s a happy median for you. In doing so, these companies hope to help you lower monthly payments so that you can afford to pay them on time each and every month that they are due.

As great as this sounds, there are some things to be aware of before attempting debt consolidation. The agencies that consolidate your money must take out a longer term of loan in order for you to get lower payments that you can afford. This is great on a monthly basis but can result in more money lost to interest rates. This doesn’t always happen, but you need to look at the whole picture before signing your money away.

Most consolidators will try to help you as much as they can. You could see a drop in the overall interest rate that they are charging you, or you could see the entire amount that you owe decrease to a more reasonable amount. If you convince the debt collection agencies that you are ready and capable of paying back the money, you may be able to negotiate a lower debt if they trust that you‘ll pay it back this time. Debt collectors realize that something is always better than nothing at all, and they usually look for ways that both parties will win.

By organizing your debt into one easy and simple payment plan that you can afford, you will be more likely to make your payment on time, which in return will stop the late fees and outrageous interest from accumulating. You should make sure that the payment that you settle on is a payment that you can reasonably make. Don’t settle for something that will send you right back in debt. On the other hand, you might want to stay away from an extremely low payment as this could lead to you once again spending too much money because you have extra “change” in your pockets. Either one will have bad financial repercussions.

Be careful when you consolidate your bills. Make sure that you negotiate something that’s fair for everyone. The best way to ensure that you will get the rate and payment you want is by being honest with the consolidator. They can’t help you if they don’t know what you need. With some time, a conversation, and a little bit of help with your debt, you can be on your way to a new found financial freedom.

To your independence,

The Fair Debt Collection Practice Act establishes guidelines that all debt collectors must follow when making collection calls. It discusses debt collection letters and what needs to be included within them. It tells what the collectors are able and unable to do, thereby protecting some of your rights along the way. Such actions like calling early in the morning or really late at night are illegal through this act. The companies can’t continuously call you (like most do) as long as you file a cease and desist letter to stop these numerous calls. They are legally obligated to follow the regulations in this letter, and they can be held legally accountable for their improper actions.

There are several things that you can do when debt collectors won’t stop calling you. You could simply not pick up the phone and trace the call if you have caller ID. They cant hassle you if you don’t talk to them. If you decide to answer the phone, there are some things you might want to have ready ahead of time. You’ll want to keep a detailed record of any conversations with a debt collector, including phone numbers, names of representatives, company names, amounts owed, and perhaps even settlement information that are mentioned in the conversation.

You might even decide that recording the phone conversation between the debt collectors might be a good idea for cases involving courts and lower settlements. The recorded words of the debt collectors would be binding if they were to try to get out of any unofficial settlements in court. You need to be aware that it may be illegal to not notify the other party that they are being recorded. Make sure that whomever you are talking with fully understands your intent and that they are being recorded.

The best way to really be sure that they won’t hassle any more is to pay off what you owe. The collectors are just trying to do their jobs, and eventually you’ll need to respect that. In this case, you will still want to take records of all information that you are given. A lot of times the collectors will settle for a lower amount of money if you give them enough incentive, so recording proof of that will be key. This will help make sure that the debt collection companies are legally bound to the phone settlement.

You’ll want to make sure that these companies stop the black marking of your credit history as you are trying to do the right thing and pay what is owed. It is sometimes hard to get your credit back to a reasonable score when dealing with them, but as long as your persistent, you can eventually get back on track. Read the debt collection letters and abide by them. Just be patient and calm as dealing with debt collectors can often be a very stressful time. There is hope at the end of it all.

To your independence,

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• Article #1: Two Things Will Get You Out of Debt

• Article #2: Credit Report Secrets

• Article #3: Clean Your Credit In Seven Moves

• Article #4: Aggressive Credit Cleaning

• Article #5: How To Stop Debt Collectors

• Article #6: Best Loan Rate In Six Steps

• Article #7: Commercial Counseling Truths

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To your independence,