Debt Consolidation Service Company
What they can & cannot do.
A debt consolidation service interviews you, gets all your debt and income
information, then comes up with a repayment plan to fit your budget. Once
you agree to the repayment plan, they will contact your creditors and negotiate
on your behalf. Basically, they are the same as Consumer Credit Counseling.
What They Can Do For You
A reputable service can negotiate a reduction of interest, late charges, penalties,
fees, etc. on your account and make it easier for you to repay your creditors.
Consolidation companies have thousands of resources, and creditors, in their
program to help you get out of debt fast and reduce your financial stress
and anxiety.
Average debt repayment agreements will have you out of debt in about 5 years
even with reduced monthly payments. They provide a solid repayment plan, and
help your budget get back on track.
What They Cannot Do
There are some debts for which a debt consolidation service cannot reduce
payments. These include secured debts such as mortgages, car payments, and
may include other types of payments as well.
When you enter into a debt consolidation agreement, you cannot incur additional
debt with those creditors. Debt consolidation services don't usually place
the agreement on your credit report. However, your creditors may. This means
you may not be able to obtain additional credit from other sources while you
are undergoing a debt repayment plan.
Successful Debt Consolidation & Management
Debt consolidation, in most cases, does not remove the reason you got so deeply
in debt in the first place.
You need to determine why, then work
to resolve it. This is the only way you can be sure to maintain control
of your finances. It doesn't matter how you got in over your
head, there are many reasons for debt problems. The secret to
debt
management success is knowing why!
This
highly recommended credit counseling service can save you thousands of dollars
and they deal with your creditors directly. They adhere to AICCCA standards and
offer online account management. Take the initiative, and make
the initial contact for online debt management.
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Debt Consolidation
Service Company.
Return to
Introduction to Consumer
Credit Counseling.
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