How it works
- Debt is a Burden on anyone
General Information
Debt consolidation is the most benign and responsible way to seek debt relief when suffering a financial crisis. A good credit counselor asks several questions when consulting with you about your financial situation. These considerations are as follows:
- You must be able to afford your new monthly payment through debt consolidation.
- You know that you cannot get out of debt making minimum payments at high interest rates.
- After making those minimum credit card payments, you have very little money left, if any.
- You are not purchasing a major asset within the first year of your program.
How does Consolidation Work
Most consumers are very confused when it comes to Debt Consolidation. Most consumers believe that consolidation is bad. That it damages your credit. Some even believe it’s as bad as a Bankruptcy. This is inaccurate information. On the contrary, Debt Consolidation was put in place to help consumers who are having trouble paying their debt and want to find an easier way out without destroying their credit scores.
The #1 fact that most consumers aren’t aware of is that FICO actually ignores the fact that you’re enrolled into a Debt Consolidation program when they calculate your credit score! This means, you can enroll into a Debt Consolidation program without the fear of your FICO Credit Score being affected. How great is that?!?
Debt Consolidation is a very simple program. What it does for you is it bundles together all your unsecured debts into one easy monthly payment. It lowers the interest rates on your credit cards down to an average of 6-9%. This means more of your payment will start going to your principal rather than finance charges. This will help you eliminate your debt in an average time of 4 years. Over 90% of the time, you wouldn’t be paying more than what you’re currently paying.
Benefits of Debt Consolidation
Through a Debt Consolidation your bills are still getting paid on a monthly basis. If you’re currently past due on your credit cards, Debt Consolidation can still help! Most creditors do what is called a “re-aging” of your accounts. What this means is, once you’ve made 3-6 consecutive and on time payments through a Debt Consolidation program, most creditors will bring your accounts back to a current status without you having to pay a higher minimum payment.
Don’t wait any longer… a few minutes of your day today can save you thousands of dollars in interest.
