http://www.debtfreezone.net/debt-free/debt-free-programs.html Debt free programs like a debt consolidation mortgage saved the Johnson family from their financial woes. en-us Sat, 26 Jul 2008 15:00:00 EDT Sat, 26 Jul 2008 15:00:00 EDT Weblog Editor 2.0 The last time we saw the Johnsons, they were researching debt free programs to find the one that will help get them out from under their mountain of debt. This is the continuation of their quest to become debt free. Finding Debt Free Programs To find out what debt free programs were available to them, the Johnsons searched the Internet on the term debt free programs to see what they could find. The results were pages and pages of companies providing debt free programs or web sites offering information about debt free programs. When they entered the Debt Free Zone, they learned that when choosing a debt management company, you have to be careful and not choose the first one that comes along. Following this advice, they filled out online forms for some of the debt management companies, did a little comparing and contrasting, and finally found one they felt could help them. Narrowing the Field The next step in their online debt free programs was to sit down with a debt management counselor to go over their financial situation in detail. The Johnsons learned that since they were homeowners, and at least one of their cars was paid for, they had more than one option available to them. These are the debt free programs that were available to the Johnsons: Debt Consolidation - A program that 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 program that involves a loan being made to you to pay off your unsecured debts. You have to have collateral, which the Johnsons do. 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 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). The only drawback is if you miss a payment, you could lose your house. Debt Settlement - Allows you to pay your debt back at 30-50 cents on the dollar--if you can come up with the new, lower amount in a year or less. Debt consolidation, debt settlement and debt consolidation loans are debt free programs that can appear as a little "blip" on your credit report, but going through one of these debt free programs is still better than filing for bankruptcy. In fact, Congress just passed a law requiring people who file for bankruptcy to go through a debt management plan first. Ultimately, a debt consolidation mortgage was the Johnsons' debt free solution of choice. They ended up getting a much lower rate on their mortgage than they had before, so the extra money they borrowed to pay off their unsecured debts didn't really make their payment go up. And since this is the same thing as refinancing your house (as far as credit reporting agencies are concerned) it does not appear negatively on your credit report. The whole "debt scare" put the Johnsons' priorities into perspective, and keeping up with the Joneses wasn't nearly as important as it used to be. From then on, they kept their debt in check and lived happily ever after, thanks to debt elimination programs. Lessons learned from the Johnson grotto What did we learn from the Johnson's debt scare? that there is more than one way to enjoy debt free living. A future without debt is possible, but in between now and that future is a whole ocean of hard work. So set sail with the right equipment and an explorer's attitude as you face the unknown. Remember - there is no such thing a free debt free programs other than what you do for yourself. You might pay some extra cash for your financial aid, but when the debt disappears it will be worth it! Sat, 26 Jul 2008 15:00:00 EDT http://www.debtfreezone.net/debt-free/free-debt-free-programs.html Free debt free programs - when a man falls into a dumpster, he finds a new world amongst the trash! en-us Sat, 26 Jul 2008 15:00:00 EDT Sat, 26 Jul 2008 15:00:00 EDT Weblog Editor 2.0 http://www.debtfreezone.net/debt-free/online-debt-free-programs.html Online debt free programs are everywhere - in the sky! Underground! en-us Sat, 26 Jul 2008 15:00:00 EDT Sat, 26 Jul 2008 15:00:00 EDT Weblog Editor 2.0