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The credit crunch situation is making life even more difficult, and people are left with no other solution than to turn towards debt. No wonder the number of debt problems are at an all time high. Now debt management services have brought a secure solution to bring finances back in order. Debt problem statistics Per a recent survey, the debt problem in the US worsens by $1 millon every four minutes. This consumer overspending has seen a growth of almost 110% in the last couple of years. That shows the severity of debt which has engulfed our social as well as family life. As people are unable to handle their debt situation on their own, debt management services are very much in demand. Debt management programs teach you how to handle your finances and get rid of debt. Some prominent and effective debt management plans offered by debt management services are discussed below. Home equity loans Home equity loans or mortgages have lower interest rates and higher credit limits. These are secured loans and can be paid off within a longer time period. That’s why counselors of debt management programs recommend this option for debt repayment. Even if you fail to repay your whole debt within the stipulated time, you won’t be losing your assets or declared bankrupt. Consolidated debts Many of you might well be familiar with debt consolidation. It facilitates combining multiple debts for pay-off as a single debt amount every month. However, debt consolidation is not for everybody. According to experts of debt management programs, those who have good credit ratings and access to unsecured debts should opt for debt consolidation. It’s also recommended to check if any hidden charges are being incurred for debt consolidation. Credit card balance transfer Most of us maintain multiple credit cards, some of which are of lower interest rates and some of which are higher. Balance transfer through credit cards is an effective way to reduce the debt amount. All you need to do is to transfer your high interest rate credit to low interest rate cards. However, debt management services agencies recommend following the clauses of the credit card offering companies to check if any hidden charges are involved when transferring the balance. Non-profit debt management There are many non-profit debt management services agencies who charge no fees or very nominal fees. Opting for one such quality service provider can save good money which you can add on to your debt payment.
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