Qualifying for Debt Consolidation

Credit Card Consolidation.com has a few requirements for consumers looking into debt management programs. The first is that you must have $10,000 or more in total unsecured debt. Debt programs don't really work for consumers that have less than $10,000 since there is no discernible difference in interest rate reduction for people who have $10,000 or less.

The second requirement is that you only have unsecured debts. Unsecured debts are accounts that have no material assets linked to them. For instance, using a credit card to buy a couch is not the same as using a line of credit provided by the store to pay for the same thing.

The unsecured debt has given you a limit to buy what you need, but has a set dollar amount. A Visa card is a primary example of an unsecured debt. The secured debt allows you to pay for the item and that item only. A car loan, or mortgage, is a primary example of a secured debt.

Unsecured debts don't care how you pay them back; you just have to pay them back. Secured debts repossess the item if you can't pay. Secured debts can also be more difficult to apply for especially with the state of the economy. Keep this in mind when applying for debt management, if it can't be repossessed, then it's unsecured. Personal loans are a type of unsecured debt as well as medical bills and phone bills.

There is one type of unsecured debt that debt management cannot help out with. That unsecured debt is student loans. Under no circumstances can student loans be submitted for debt management.

But, it's an unsecured debt, right? They can't take away the diploma.

Well, federally granted student loans are the only types of unsecured debt protected by the government against debt management or any type of debt plan. Government issued student loans are even protected against bankruptcy. Only under the most severe financial conditions can a student loan be forgiven in bankruptcy and a credit counselor will have to determine that first. Bottom line, you will have to pay back your student loans.

If you're finances have gotten a little out of control, and the monthly payments are too high, you can contact your student loan provider to find out what solutions they can provide.

The last requirement is to have a commitment to see the program through. This one really isn't for us, but something that we encourage for you. The most successful debt management programs come from the customers' willingness to see this to the end, their vision of a solid retirement plan, or being able to send their kids to college.