Originally posted 2011-12-31 03:10:30. Republished by Blog Post Promoter

If your obligations have caught up with you and you find it almost impossible to pay them off and live a decent lifestyle, don’t worry. Lots of Americans suffer from the same condition that you are in and hundreds of thousands as well have been able to overcome it. So before over reacting from your particular predicament by declaring bankruptcy, try to consider government debt consolidation first.

Federal debt consolidation is a type of government agency which has a main goal of helping people in debt gain back their debt free lives. It offers debtors a bill consolidation loan that will take care of the whole set of outstanding debts a debtor has. Wether it’s from a education loan, credit cards or health related bills, all of these outstanding balances are merged into one larger debt. In easy terms, all your loans are put together to make one main loan. This allows debtors to focus their efforts on repaying just one loan instead of having to worry about a lot of loans. Furthermore, this loan gives debtors decreased interest rates and extended paying terms. Since these loans have longer paying terms, lenders may give more leeway in terms of rates of interest. Therefore monthly premiums will be much smaller as compared to the total monthly payments you had before consolidating your debts. This scheme allows debtors to pay for the loan at a user friendly rate and free-up some cash.

You might be wondering how federal debt consolidation works and how it is able to give the debtor lower loan rates. These government agencies deal with the various creditors trying to cut a deal that will result to a win-win scenario. Federal debt consolidation agencies see to it that creditors get money and borrowers are waived of high interest and payment charges.

Even though there are a wide variety of organizations that offer this type of service, not all of them able to charge as little as federal debt consolidation agencies. Federal agencies are non-profit organizations that allow them to have minimal service fees. There are numerous fake credit card debt management agencies on the market, be wary of them This is why it could be best to stick to federal debt consolidation agencies.

For more useful and free resources debt management resources be sure to visit: www.livingoutofdebt.com/

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