Debt Consolidation Favorite Asked Questions
(FAQ's)
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We are committed to providing an efficient means of consolidating your debt, we can lower or completely eliminate your interest rates and save you thousands -- getting you out of debt up to 70% faster. What exactly is Debt Consolidation?
Debt consolidation involves combining all your unsecured monthly bills into one lower monthly payment at a lowered interest rate. Debt consolidation is not a loan it is designed to assist clients in significantly reducing their overall interest rate, monthly payments, and pay-off time.
This is done most commonly through a non-profit credit counseling agency whose mission is to assist consumers in the repayment of their unsecured debt. Creditors receive tax savings for contributing to these programs, and in return offer reduced interest rates (sometimes as low as 0%).
How does a Debt Consolidation Program work?
A certified credit advisor contacts your creditors to reduce your interest rate and monthly payments to an amount that you can afford. Most credit counseling agencies already have working relationships with creditors and they will know exactly how to get the best deal.
With a debt consolidation plan in place, you no longer pay your creditors directly. All your debts are consolidated into one manageable reduced payment to the debt consolidation agency. The debt consolidation firm, in turn, pays your creditors, on your behalf, every month.
How much can I save by using a debt consolidation plan?
Most debt consolidation agencies can help lower your overall monthly payments as well as your collective interest charges. An example of a debtor with a $4,000 balance on Citibank, Visa and gas cards for a total of $16,000 in debt with an average interest rate of 22% would see the following benefits from a debt consolidation program:
Current Payment: $650/month Current Interest Rate: 22%
New Debt Consolidation Payment: $340/month! New Interest Rate:
10.95% Fixed!
Monthly Savings = $310 per month and 11% in interest charges!
How much does a debt consolidation program cost?
Your creditors will subsidize a large part of most debt consolidation services. Keep in mind that your creditors are not lowering your interest rate and making it easier for you to make smaller payments out of the goodness of their hearts. Creditors realize that if they do not help you out you may file bankruptcy and they will most probably collect nothing.
Through a debt consolidation service they can recoup the principal on your debt. You will notice that most credit counseling agencies are organized as "non-profit" companies. This allows the creditors to recoup a significant portion of the "lost interest charges" through tax write-offs.
Debt consolidation will...
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Slash
your monthly payments up to 60%
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Reduce
or eliminate the interest rates
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Give
you one easy monthly payment
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Drastically
reduce your payoff time
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Help
you obtain Financial Freedom!
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Our professional debt consolidation staff can negotiate a payment plan with your creditors to put money back in your pocket right now!
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