http://www.debtreductioninfo.com/debt-services/ Debt services are growing in popularity as a means to helping people out of debt. Read on to find out what debt services are and if they can help you. en-us Sat, 26 Jul 2008 15:00:00 EDT Sat, 26 Jul 2008 15:00:00 EDT Weblog Editor 2.0 Heard of debt services but aren't sure what they are? Debt services can also be called debt consolidation services, debt relief services and debt reduction services. Although some debt services differ slightly, they all have the same goal: to help you get out of debt. Below is a list of different debt services and a basic overview of each one: Debt Consolidation - Debt consolidation is the most common form of debt relief. In most cases, a debt relief company will negotiate with your creditors for lower interest rates and lower monthly payments, then you make one payment to the debt relief company each month instead of several payments to many creditors. They divide your single monthly payment among your creditors. Because of the lower interest rates, the end result is that you will be out of debt in about five years instead of 18-20 years, which is how long it would take to pay it off only paying the minimum required payment each month on each card. Student Loan Debt Consolidation - This is for people with student loans totaling $10,000 or more. In many cases, the interest rate on student loans is very high, and the payments are high as well. Right now, however, rates are low, so you can lock in to a low fixed rate. Student loan debt consolidation can cut your monthly payment amount by as much as 50%. Debt Consolidation Mortgage - A debt consolidation mortgage allows you to borrow from the equity in your home, which is secured debt, to pay off your unsecured debt (credit cards, medical bills, etc.). So basically it's turning your unsecured debt into secured debt, and you're able to get a lower interest rate. In some cases, you can write some of the interest off on your taxes. You can't do that with unsecured debt. However, to get this type of loan, you have to use your house as collateral, so if you cannot make the payments, you risk losing your home. This is only a good option if you are absolutely certain that you can make your regular mortgage payments and the debt consolidation loan mortgage payment as well. Debt management services can also teach you how to budget, how to use credit wisely and even how to build up your savings account. When you take advantage of this aspect of debt services, you will be able to stay out of debt once you are out of debt. If you think you can benefit from debt services, read the other pages on this site to learn more about them. Then check out some of the companies on our Related Resources page. Fill out their no-obligation online questionnaires and get recommendations from them within 24 hours. Then compare and contrast the offers to decide if debt services are right for you. Sat, 26 Jul 2008 15:00:00 EDT