If you're in a bad credit situation, you may be searching for online information to help you understand your various options for debt consolidation. While the Internet has a wealth of information about debt consolidation, it may be difficult to sort the good from the bad. There are four resources offering excellent launching points for your research into debt consolidation.
Annual Credit Report
The first place you should look online if you have bad credit and are considering debt consolidation is the Annual Credit Report website. All U.S. citizens can obtain a free copy of their credit report once a year from each of the three credit bureaus -- Equifax, TransUnion and Experian. Your credit report will tell you where you stand and what kind of consolidation you should pursue. If you want to consolidate through a debt consolidation loan, you'll need to have good credit as well as collateral. To qualify for a debt management plan, you must prove you're having trouble paying, and possibly have defaulted on payments already. Your credit report will give you the information you need to know about your credit situation when you begin exploring your consolidation options.
Federal Trade Commission
The Federal Trade Commission website contains a wealth of reliable information if you need help understanding your credit situation and your options for becoming financially free. Their article "Knee Deep in Debt" details the differences between debt management plans and consolidation loans, warns of problems that you may run into by using these methods, and includes information on bankruptcy. The Federal Trade Commission website also has articles on budgeting, choosing a credit counselor and accessing your credit report.
National Foundation for Credit Counseling
One of the biggest problems people run into with credit counseling companies is they are often unreliable or fraudulent. Among the problems people have with so-called credit counseling companies is their practice of making late payments to clients' creditors, resulting in dramatically lower credit scores. The National Foundation for Credit Counseling website helps people find reputable credit counseling companies through phone, in-person or online options.
Bankrate
Oftentimes, people jump at debt consolidation before they fully understand their options and how to tell hype from reality. The Bankrate.com article "10 debt consolidation myths" breaks down the information thrown at you from advertisements so that you understand what you're really going to get if you take on a consolidation loan, credit counseling or a debt management plan.
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