Q. I have spent beyond my affordability and cannot manage my debts. What should I do to manage this escalation of limits? A. Don't sit idle brooding too much and doing nothing. Immediately consult your friend, family members and if possible a financial expert. Remember! You cannot get rid of debt by yourself. You have to proceed under the guidance of consultant. Q. Should I talk to my lender? A. Yes, you should talk to your lender. A number of lenders are sympathetic to borrowers; you should ask them to suggest you a company that arranges debt management and consolidation plans. All finance companies are willing to arrange debt managers so that the borrowers can payback the installment on loan. Q. Is debt consolidation loan better than a loan? A. Yes! Debt management is always better than a loan. Going for another loan for paying back another loan can be suicidal, which one should avoid at any cost. Q. How does the debt program works? A. For borrowers finding a mismatch between their income and expenditures due to heavy expenses on shopping and other type of outgoing bills; companies arranging debt management take care of your outgoing bills and ask borrowers to pay a single cheque every month. Borrowers save substantial amount of money as they have chance for fee waivers also. Q. Should I take out a consolidation loan? A. Debt consolidation loans can be helpful in the settlement of the debts; but even these can damage your finances further if you default on payments and do not control your finances. The proposal is that debts settlement will be simpler if they are "consolidated" into one repayment. This may seem like a reverie for the debt-weary, but debt counsellors advise people to take them with caution. Interest rates charged on these loans are normally higher. They often come with payment protection insurance with unfair terms which may not cover you if you fall ill or are made redundant. They also tend to be "secured" loans. This means that if you are unable to keep up repayments you will lose the roof over your head. Q. What bills should I prioritise? A. Debt experts counsel people to prioritise repayments on essential services such as mortgages and utility bills. If you are paying off a range of credit cards and store cards, you should pay off those with the highest rate of interest first. You could also switch your balance to a credit card that charges a lower rate of interest. Q. Should I consider a debt management program? A. Yes, you should certainly consider a debt management program- loans or mortgages. We, at easy-debt-consolidations negotiate on your behalf, to help reduce your outgoing payments. We also ensure strict compliance of our commitment for confidentiality in your deal. Q. How can I determine if a debt consolidation loan is right for me? A. One has to start by understanding what a debt consolidation loan is and how it fits into solving the personal debt situation. If you find it difficult it for yourself, then there are companies that undertake this task for you and suggest the best deal. Q. Is there any legal difference between a debt consolidation loan and a home equity loan? A. Not in most cases. A debt consolidation loan in legal parlance generally does not differ in any way from what one might call a home equity loan or a second mortgage loan. However, the way in which a debt consolidation loan provider functions may differentiate the home equity loans from them. Q. Is debt consolidation loans tax deductible? A. In some cases, depending on the cost basis of your home, the interest portions may be tax deductible. Potential borrowers should check with their tax advisors to explore what portion, if any, would be tax deductible for them. Q. If things get better can I pay off a debt consolidation loan early? A. In most cases there is no prepayment penalty with these loans, but read your documents carefully. Some loans will indeed penalise you an extra-prepayment penalty fee if you pay the loan early. Before delving into what Easy-Debt-Consolidations can offer through debt counselling, it will be necessary to understand what exactly debt counselling is. Debt counselling aims to instill money management and financial management skills in people. Education is provided on the judicious use of the limited income. Various methods are also suggested through which people can repay the existing debts. Debt counselling is a not a one sided process. The task of Easy-Debt-Consolidations does not end with merely suggesting or providing debt settlement financial products. The borrower is provided help on a continuous basis under debt counselling. The debt counselling provided through Easy-Debt-Consolidations has helped many people to improve their financial condition. Debt counselling basically includes the following: 1. One-to-one debt counselling Debt counselling can best attain the desired motive when the borrowers are counselled personally. While a general debt counselling session helps the borrower get aware of the ways that can be used for improving their situation, no specific method is suggested. We arrange a one-to-one debt counselling session for each individual so as to suggest specific means for improvement. Debt counselling of this form requires a personal touch. Each case is studied with care. After a careful study of the case, debt counselling would entail suggesting proper products to suit the borrower. 2. Self-help packs Self help packs require the borrower to actively participate in improving the debt condition. They are offered certain tips for being utilised in their day-to-day life to avoid debts. The borrower will, after getting the awareness through debt counselling, employ the tips suggested to his/her own finances. This is a continuous process; the borrower will intimate the results of the use of tips to the debt counselling agencies. The debt counsellor would then decide the future course on the basis of the results.