McDebt - Debt Reduction

Debt Reduction

Do you have a lot of debt but good credit? A lot of debt and bad credit? A little debt and good credit? A little debt and bad credit? Debt reduction can help people in any of those situation.

Debt Reduction for One and All

You may have heard that there's good debt and bad debt, and that's partially true. Just about the only kind of good debt is a mortgage. It's the only kind that is like an investment. All other debt usually comes with high interest rates and takes years and years to pay off if you only pay the required monthly minimum. Consider these statistics:

#09 Current outstanding debt in America is $800 billion
#09 Average amount of unpaid credit card debt for families who have it is $12,000
#09 Credit card debt for Americans living below the poverty level doubled by the mid 1990s.
#09 The average credit card balance for senior citizens went up 89% from 1992 to 2001
#09 Average amount of consumer debt per person is over $7,000
#09 Over 55 million Americans need debt help

You get the idea. We are a nation in need of debt reduction. This is why the debt reduction services have sprang up - largely - in response to demand. So please do your bit and take advantage today! You never know what type of debt relief you may come across. Read on.

Debt Reduction Programs

In the last 10 years or so, a new industry has appeared on the scene. It's the debt reduction industry, and it offers a variety of debt reduction programs that can help just about anyone. Here's a brief outline of the most basic ones:

Debt Consolidation - This is the most popular debt reduction of all, and it involves negotiation to get your unsecured debt balances and interest rates lowered. Then the new, lower balances are combined and you make one monthly payment to the debt consolidation company, which they distribute among your creditors. Because of the reductions, you can become debt free in about five years.

Debt Consolidation Loan - A loan given to you to pay off your unsecured debts. You pay off your unsecured debts immediately, but you still have the loan to pay back. The benefit is that the interest rate on the loan is so much lower (generally half of what you're paying now) and you can have it paid off in five years or less.

Debt Consolidation Mortgage - A debt reduction program that allows you to borrow from the equity in your house to pay off your unsecured debts. Your payment is combined with your mortgage, and you get the same interest rate as your mortgage. In some cases, the interest is even tax-deductible (check with your tax advisor to see if this will work for your tax situation).

Student Loan Debt Consolidation - Combines all of your outstanding student loans into one and locks in a much lower, fixed interest rate for you. Your monthly student loan payments are cut in half, too, because you are given more time to pay them off.

Debt Settlement - Allows you to pay off your debts at 30-50 cents on the dollar. Generally, you have to have the money all at once, but some debt management companies will give you one to three years to pay it off.

To find out which of these debt reduction programs is right for your situation, you'll need to contact a reputable debt management company. Call your creditors to see if they can recommend one, or just search the Internet.

Let McDebt be the debt reduction program to help you see the light. A debt reduction plan will get you goin' right.