Debt Consolidation

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What Can Debt Consolidation Do For You? When faced with an overwhelming debt load that can't be kept up with, let alone paid off, the options are limited to getting debt help. Declare personal bankruptcy and it will remain on the credit record for ten years. Take out a second mortgage on the home, but then you face the same problem of additional regular payments. Of all the available options, the one that many people ignore, because they find it complex, are the services of a debt consolidation company, also known as debt counseling or debt management. A debt consolidation company allows one to consolidate debt into one monthly payment. It is similar to debt reduction, even if you need serious credit card debt relief. It will also help cut the amount of money paid out on interest alone. And eliminate late fees, with one regular monthly payment only. Debt consolidation companies are staffed by experienced professionals who know the stresses and financial straits of having more debts than income. A debt consolidation counselor will approach your creditors and negotiate a consolidation of all your debts into one monthly payment. Whether you still have good credit, or a bad credit rating, a debt consolidation company helps get you back on your financial feet by supplying both budget and credit counseling. Their services are available to all who find themselves in a debt crunch, whether they own a home or not. Since this is not a debt loan service, you won't have to use your home for collateral. The Debt Consolidation Process A debt consolidation counselor talks to you to assess your situation. After you and the debt consolidation counselor have worked out a re-payment plan, the debt consolidation counselor contacts your creditors to reduce your debt. Creditors acknowledge that if you are working with a debt consolidation company, you are likely working to pay off your debt, and therefore are more willing to reduce your interest payments. Your creditors would rather get some money back with the help of a debt consolidation company, than get nothing at all. So, finally it's a win-win situation for both you and the creditors. The debt consolidation company helps both by providing consumer credit counseling. Credit Card Cost Calculator