http://www.credit-card-counseling.net/debt/debt-counseling/debt-counseling-services/debt-counseling-agencies/ Debt counseling agencies exist to help you get out of debt. See what debt counseling agencies can do to help you. en-us Sat, 26 Jul 2008 15:00:00 EDT Sat, 26 Jul 2008 15:00:00 EDT Weblog Editor 2.0 Do you know what debt counseling agencies do? The purpose of their existence is to help you get out of debt through a variety of programs. Programs Offered by Debt Counseling Agencies What kinds of programs are offered by debt counseling agencies? A wide variety. There are debt management programs offered by debt counseling agencies to help people get out of debt, and the best debt counseling agencies offer debt counseling services as well. Here are a few of the debt management programs you might hear about when you talk with a debt counselor: Debt Consolidation - A process through which a debt management counselor contacts your creditors to get your balances reduced and your interest rates lowered. Then your new balances are combined into one, so you only have one monthly payment to the debt counseling agency. Because of the reductions in balance and interest, you can be debt free in about five years. Debt Settlement - A program through which you pay off your debt at 30-50 cents on the dollar, but you have to have that total amount paid within a year. Debt Consolidation Loans - A loan is made to you to pay off your debts at an interest rate that's a lot lower than what you're currently paying on your unsecured debts. You get your unsecured debts paid off immediately this way, but your loan isn't paid off for five years. Debt Consolidation Mortgages - Allows you to borrow from the equity in your house to pay off your unsecured debts. The downside is that if you miss a payment, you could lose your house. Student Loan Debt Consolidation - Combines your student loan debts together into one at a much lower fixed rate. Your monthly payments are reduced by about 50% because your payments are stretched out over a much longer period of time. Debt Counseling As we said before, good debt counseling agencies will offer debt counseling. This way, once you get out of debt, you can stay out of debt for good--if you use the techniques you learn, like budgeting skills, how to save, how to be smart with your credit and how to plan for the future. Sat, 26 Jul 2008 15:00:00 EDT