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What
is Debt Consolidation? |
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Debt
consolidation is designed to help pay off your debt by combining
all your bills into one affordable monthly payment. Under our
program, monthly payments are lowered and interest rates are
reduced - sometimes totally eliminated. Your save thousands of
dollars in interest, and your payoff time is typically much less. |
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Why
are my creditors willing to do this? |
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Creditors
are willing to lower interest charges and monthly payments as
a way to help the client avoid filing bankruptcy, or to avoid
having to turn accounts over to a collection agency. |
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How
will this affect my credit? |
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Debt
consolidation is the often regarded as the best way to become
free of debt. Future creditors will view enrollment in a consolidation
program as your taking responsibility by making regular monthly
payments to meet your debt obligations. It may be that you are
current with payments but realize that you will never be free
of debt by paying only the minimum payment each month. In this
case, you are in financial danger but your credit rating may
still be very good. Once you have begun our debt consolidation
service, your credit report may or in most case, may not indicate
as this bill is being payed by a Third Party payer. This is not
a negative or positive aspect, simply a neutral remark. |
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Which
types of debts can we work with? |
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All
unsecured types of debt can be successfully consolidated under
our program. These will include credit cards, bank lines of credit,
judgements, attorney fees, IRS back taxes, previous rent, previous
utilities, disconnected cell-phones, student loans, medical bills,
and department store cards. |
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Should
I consider declaring bankruptcy? |
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If
you are in an absolute financial crisis, then choosing the drastic
measure of declaring bankruptcy should be a last resort. Again,
Bankruptcy should only be considered as a final option. It will
have an adverse affect on your credit report for up to 10 years.
It will also harm any potential relationships with future creditors.
Most future creditors won't even consider extending credit to
you. You also need to go to bankruptcy court and pay attorney
fees. With our debt consolidation alternative, you repay your
obligations at a faster rate, at reduced interest charges. |
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Is
taking out a consolidation loan a good decision? |
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No.
Many consumers see this as the best option for resolving debt.
They receive a lump-sum check and are lead to believe that the
interest is tax deductible. Unfortunately, many families encounter
deeper financial difficulties than they had before taking out
the loan. Payments and interest charges on debt are not reduced,
and you end up having to pay down additional debt from your new
loan. Your home can be jeopardized if you become unable to pay
back the loan. The good news is that our debt consolidation program
reduces your payments without incurring additional debt. You
do not have to take the opportunity of losing your home to get
out of debt! |
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How
long will it take to get out of debt? |
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With
the average client debts can be resolved in approximately 4 years
or less. Typically 2 to 4 years, though it varies from case to
case. |
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