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The most important thing to understand when understanding debt reductions is the fact that it is not easy through debt counseling. A number of people believe that if they were to participate in debt counseling, then this step would automatically have a positive effect on reducing their debt. Well, this is definitely not the case. For some people, there are 2 major ways to lessen their debt.


Most of the blogs on the subject of debt reduction provide an objective review of the many debt reduction programs now available to those people who want relief from the ever increasing debt burden. Many writers share personal insights based on their own or other people’s experiences on the various debt reduction programs which may include financial education, debt counseling, debt elimination, credit card debts solutions, debt settlement, debt consolidation, debt management, consumer credit, tools on personal finance and related issues. Many of the writers also provide helpful information based on extensive research and study.

Timely and on Target

Many people in debt feel themselves in the dark and paralyzed when it comes to finding solutions for relieving their debt burden, thus, desperately need help. Help with hope is what debt reduction program review sites want to provide. Help comes in the form of practical insights, examples, financial education, principles, tools, programs and solutions, and where to find them. Recent statistics show that people have credit card debts and more have debts in other forms. The current recession has made it even worse, especially for those who have lost their jobs or had their income reduced.

Differences between Credit Counseling and Debt Reduction

Credit Counseling Program: All of your existing credit accounts must be closed down, except the ones that are needed for business or have very small to zero balances. On the other hand, a debt reduction program doesn’t do so. But, what you need to keep in mind is that you can have a few credit cards handy for emergencies. If you do not want to close down your accounts, then perhaps the option of reduction programs would suit you better.

Completion Period: Credit counseling services do tend to take longer to complete as compared to the debt reduction programs. In fact, the time frame needed the liquidation of your debt through credit counseling is almost 5 years, whereas, the reduction programs would only take a year or so. Now, you can choose according to your need.

Cost Saving: There is no doubt that one of the advantages of opting for a reduction program rather than a credit counseling service would be the amount of savings to get. A reduction program only requires you to pay a settlement amount of 20% to 60% of the debt amount. On the contrary, a credit counseling service demands the full amount with some discount and waived interest.

Debt Reduction Programs

Debt Management Program: This plan is administered by a software program or a professional firm. It includes the reviewing of all your debts, the total amount you owe, the interest rates, and then it calculates the most comprehensive payment plan for you to pay as soon as possible.

A debt management program needs higher discipline levels. It only works if you follow the implemented plan without any wavering. For this reason, these plans are set up to initiate the electronic withdrawals from your bank account, which go directly to your creditors periodically.

Credit Counseling: Credit counseling programs also serve those who are chronically buried under their debts. These programs involve paying fees to the counselors because they are the ones who conduct the negotiation with your creditors to get lower your payments, lower interest rates, or less total payments.

You should keep in mind that these types of programs usually don’t contribute towards lowering your credit score, but they do show up as notations by numerous creditors on your credit reports. This can possibly put off some lenders and there is a strong chance that you may harm your relationship with your existing creditors. You should also know that you won’t be able to control your own finances and may have to even reach an agreement on inflexible bi-weekly payments.

Debt Settlement: Debt settlement is recognized as the most stressful debt reduction programs available out there. Debt settlement agencies allure desperate people with a tempting claim that includes “negotiation of 40-60% of your debt!” For a person who needs an efficient and rapid solution, this sounds perfect. Unfortunately, it requires numerous months to save the money which is necessary to reach a debt settlement with the creditor. The larger your outstanding balances will be, the longer it will take to sum up the money. So in turn, the late fees, interest charges, and over limit fees make your debt grow at a faster pace than ever.

The Money Merge Account Program – The Ultimate Debt Reduction Solution: This can actually start producing solid results before any other program. It is one of the most highly recommended debt reduction programs, and it meets all 4 criteria listed above.

The Money Merge Account is a reliable debt reduction program available in the market today because it works from the first month until your final payoff date. It is truly the most advanced debt reduction program out there that can eliminate all debts in 1/3-1/2 the time.

Debt Reduction Criteria for Debt Elimination

Unfortunately, most programs of debt reductions simply do not work as advertised and end up leaving you worse off beyond when you started. All programs of debt reduction ought to fulfill 4 things:

  • Diminish the time it takes to pay off debts
  • Diminishes the monetary amount requisite by you to pay off debts
  • Vocation with the current income
  • Production of REAL outcomes REAL fast

Debt Reduction Strategies

Stop Creating New Debt: Prior to your beginning to eliminate your existing debts, you ought to make a serious effort to avoid the formation of new debt. The last thing that you want to do is to dig your hole deeper than it is before. You can try to operate on a cash basis for day-to-day expenses. Leave your credit cards, home or cut them up so that you are not tempted to purchase more than you can afford. You may wish to keep one of your cards to be used just in an emergency.

Creating a Budget: The next step in the diminishment of your debt ought to be comprehension of where all of your money is being spent each month so that you can form a budget. You will be in the requisition of expending a month or so tracking every expense irrespective of how small it is.

All of your household living expenditures logged during that period must be reviewed. Your expenses ought to be grouped into categories like fast food, rent/mortgage, entertainment, power, phone, TV/cable, internet, gas, car maintenance, etc. The expenditures must be evaluated to determine if any of them can be eliminated or reduced. All of the “nice to have” type of expenses must be eliminated. The other expenses must be reduced in any way you can. This should be followed by the formation of a budget on the basis of the remaining expenses, and the budget should be adhered to as if your life is dependent upon it.

Disbursing Down Your Existing Debt: Once you have a budget in place for your household living expenses, you can turn your attention to paying down your existing periodical debts. This can be commenced if you start stocking all of your existing loans. Make a note of the balance owed, interest rate, and minimum monthly payment for each debt.

Once you are ready with the information on your monthly debts, a debt reduction strategy must be selected. Many such strategies are around that are used to help people diminish their debt. The two most popular are:

  • Paying off debts with the highest rate first.
  • Paying off debts with the lowest balance first.

Building a Financial Future

A small river named Duden flows by their place and supplies it with the necessary regelialia.
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