Free debt consolidation is available online, from a wide variety of companies who offer services aimed at helping people who are overwhelmed with credit card or other unsecured debt. These are non-profit firms dedicated to providing free debt consolidations to debtors. They contact a debtor's creditors to negotiate the lowering of interest rates first, then sometimes even get the principal reduced (known as settlement). Then these services can provide consolidating options as well as work out a payment plan. If the plan is followed, debtors can be financially free in five years, and will have paid somewhere between 33 and 60% less than the original amount owed. Consolidating debts appeals to people because it almost always results in a lower monthly payment. Furthermore, because it combines many creditors, consolidating eliminates multiple payments each month. In addition to free debt consolidations, companies also offer counseling in ways to better handle finances, so the client doesn't end up in the same place again. This is particularly helpful to people who have never known how to budget or plan for a financially secure future. Many people who have taken advantage of the free debt consolidation are surprised at how much farther their money can go after they receive counseling regarding handling finances more wisely.
On the other hand, homeowners may choose home equity loans in order to pay their debts when talking to a financial counselor. As long as there is enough equity in the home, this is a viable option among free debt consolidations. The only drawback of this means of lowering debt is, if one should have to sell the house before the loan is paid off, the loan balance comes out of the proceeds the owner would otherwise receive.
Any of these forms of free debt consolidation will help people with burdensome bills to get relief. The fact that there are many companies offering free debt consolidations means the debtor must take some time to research several of free debt consolidation companies to see which offers are best suited to his/her needs. The differences among companies offering the service may be small, but it is worth finding out rather than blindly picking a name off the list. Creditors who cooperate with the companies in helping a debtor set right his financial affairs are to be commended. The Old Testament speaks of a just creditor in part of Ezekiel 18:7 "And hath not oppressed any, but hath restored to the debtor his pledge..."
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