Debt Consolidation Videos
On this post we are uploading some videos we like regarding debt consolidation. How debt consolidation works and how debt settlement and debt relief work. These videos were created by others and we have edited them to suit the United States. They’re helpful if you want to learn about your options of paying down debt. We have links to the original videos creators as well and a link to their site(s).
We will be adding to this video collection post over the next few months.
#1. First video is pretty cute showing an animation about a character named John who is in deep debt trouble. This was created and posted by a South African debt services company called Debt Busters – the original video is here.
Transcription via Youtube:
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large amount of credit card in early
making the minimum payment every month
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you’re not going to pay it off anytime
soon
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in fact if you only make minimum
payments it could be decades before you
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find yourself debt free again say for
example you have ten thousand dollars in
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credit card debt which is represented by
the water level in this class in order
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to $10,000 you’ll need to empty the
entire glass by returning the money
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00:00:29,669 –> 00:00:35,760
order or credit card so every month you
pour out a little water by making your
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minimum payment which is on average
around $142 that payment lowers the
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total amount you vote
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9858 domes that’s a little bit lower but
not much unfortunately they’re outside
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influences that can raise it mainly
being interest interests normally
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charged around 17% of you out sitting
there
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after seventeen percent interest on your
outstanding balance is charged that
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brings you new debt amount to $9,999 so
after one month you’ve paid your credit
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card company $142
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your total debt is only gunned down by
one the next month if you still make
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this a minimum payment of $142 your debt
will be down to 9857 others but again
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there’s that pesky interest sneaking up
on you so after paying seventeen percent
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interest in your did as backup to $9,999
that means I have to pay your credit
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card company $284 your total day has
only gone down 82 bucks after year
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making that’s a minimum payment of your
credit card company 1846 dollars are you
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still own 9999 that means it’ll take you
an entire year just to lower your dead
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by five dollars a year later lowered
what you owe your credit card company by
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another 50 eventually you see that if
you took action to lower your did the
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money you’re paying the credit card
company could go towards things that
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have much rather like
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used car brand new car
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child’s college education or even grad
school then after a quarter-century and
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more than $40,000 your debt will only be
1578 dollars less only after 35 years of
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that a single later missed payment we’ve
finally start to see some progress when
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you have a little more than $1,000
lifted then after 36 years of paying
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$142 minimum payments 17% interest every
month will finally have paid off your
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entire $10,000 a day but in order to pay
that $10,000 you’ve taken more than
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three and a half decades of your life
and spent more than 60 grand just
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imagine if you had an extra 60 $1,060
you could use it for anything from
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shopping and vacations to paying your
mortgage or rent or you could just set
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it aside for retirement you could even
have spent that money on your children
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or grandchildren cause even if you
didn’t have them before he got into debt
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you could wind up with both of them
after 36 years
#2. The second video is regarding the reality of paying down high interest debt and making just the minimum payments. It uses a half glass of water as a metaphor. The original video is here. Kind of a depressing video but it’s true. This video was created by a company called Total Debt Relief. The only thing I wish they did better on the video was the voice over because of the microphone popping. However, the point was made and shows the reality of high interest debt.
#3 The third video was created by a company called DebtConsolidation.com – this link to the original video is here. This video has a little animated guy who plays an incredibly annoying and stupid customer. His voice is so annoying you want to kill something after hearing it a few times in a row. I think this company did this on purpose. Sometimes really annoying commercials are more memorable.
However! This video explains the differences between debt consolidation, debt settlement, and debt counseling really well, which you can’t say for most videos.
Below the video we the transcription as well. I have pointed out the “Annoying Geek” comments for you. Warning not to watch this video too many times in a row. You will get angry.
Video Transcription:
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Annoying geek: Awesome!
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00:00:03,210 –> 00:00:03,990
What is debt consolidation?
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00:00:03,990 –> 00:00:05,879
Annoying geek: “I don’t know – tell me!”
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00:00:05,879 –> 00:00:10,099
Debt consolidation is a way of paying off
your debts without declaring bankruptcy.
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Instead of managing a few high interest loans
like credit cards, people can consolidate
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their debts using a single personal loan with
a lower interest rate to pay off that debt.
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Benefits of debt consolidation.
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00:00:20,869 –> 00:00:21,760
Annoying geek: “What are they?”
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The main benefit is paying less every month.
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By using a personal loan to pay off other
high interest rate loans you spend less on
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interest payments every month and you reduce
how much you spend over the life time of the
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loan.
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It also makes things easier to manage.
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Instead of writing multiple checks to different
financial institutions you write one.
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Annoying geek: “Awe….sweet!”
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Debt consolidation options
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What are the first steps?
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Annoying geek: “Be positive!”
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Shop around for the best loan. Once you are
approved and get the money for your debt consolidation
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loan, pay off your existing loans.
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Annoying geek: “Awesome!”
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Here’s how to quickly determine if debt consolidation
loans are for you.
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List all your debts on paper. Including mortgages,
car loans, credit cards, etc.
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Next to these debts write down the interest
rates and how much you still owe. Determine
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how much you’re paying each month.
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Whether you’re paying down the principle,
paying just the minimum payment, or less and
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getting penalized.
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Figure out the total amount needed to pay
off your loans. Use our debt calculator to
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help.
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Annoying geek: “Calculate!”
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If you find a comparable loan with a smaller
interest rate a debt consolidation might be
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for you. If you can’t don’t worry – other
options are available.
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These include debt settlement and credit counseling.
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Debt Settlement
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Debt settlement is a legal way to pay less
than you actually owe.
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Annoying geek: “What!”
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Reach an agreement with your creditors that
sets a more reachable target payment that
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will satisfy your debt. Creditors agree to
settlement because some money from you is
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better than nothing.
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How Debt Settlement Works
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Annoying geek: “I don’t know – tell me!”
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First you select a debt settlement company.
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Annoying geek: “I think you!”
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This company negotiates with your creditors
to reduce your total amount of debt. Once
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in the program you pay a specific amount per
month to the settlement company. They hold
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your money until there’s enough to satisfy
your debts and pay the fees.
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How long does this go on?
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Generally speaking it takes two to four years
to be finish and be debt free.
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What To Look Out For
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Be sure the company you choose to work with
doesn’t bill for fees before a debt is settled.
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Annoying geek: “Give me your money!”
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Claim they have access to a new government
program that helps consumers out of jams.
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Annoying geek: “I promise everything!”
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Make guarantees that your debt will be eliminated.
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Tell you to not ever communicate with a creditor.
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Annoying geek: “Don’t talk to those guys!”
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Promise they can halt all calls from debt
collectors, and end any lawsuit.
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Annoying geek: “I still promise everything!”
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Good debt settlement companies don’t make
promises they can’t keep. They work to help
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their customers get out of debt by helping
them pay less.
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Annoying geek: “I love this!”
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Credit counseling is also another good option.
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Credit counseling involves working with a
credit counselor to reduce your debt and develop
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good spending habits.
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These counselors are trained in budgeting,
debt management, spending habits, and financial
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education.
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They’ll help you find the best way to handle
your debt.
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Meetings between a credit counselor and a
client are considered confidential.
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Annoying geek: “Because I’m broke!”
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When you meet be prepared to tell everything.
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Your income, household expenses, existing
debt, and spending habits. Don’t worry, they
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are generally very understanding and won’t
judge.
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Simply complete our secure online form for
a free savings estimate and be paired with
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our top debt relief experts now.
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It’s time to be debt free.