Free Debt Consolidation
We provide free consumer credit counseling and debt management services for people overwhelmed with credit card debt.
to Questions and Answers
is debt consolidation?
There is more than one way to consolidate debts. The most
common methods, include getting one loan to pay off debts,
filing for debt adjustment under Chapter 13, negotiating debts
down with creditors into one low payment and working with
creditors to reduce interest and payment, with the new lower
payments being handled by the debt consolidation company.
Not all of these methods are appropriate for everyone. In
particular, taking on new debt in the form of new debt
consolidation loans is almost always a costly mistake. If
your debts are beyond redemption such as in the case of a loss
of employment, Chapter 7 bankruptcy may well be the best option.
In other instances as in cases where foreclosure of real estate
is imminent, Chapter 13 bankruptcy is often the only realistic
The term debt consolidation as used by consumer credit
counseling companies does not involve loans or bankruptcy. Your
debts are consolidated into one lower payment that you make
through the credit counseling company which in turn disburses it
to the creditors. This most desirable restructuring is achieved
through negotiating with your unsecured creditors to both slash
the balance owning and the interest rate so that the result is a
much lower payment than before.
This type of debt consolidation is a win-win situation for
both the creditors and the debtor. Creditors recoup much of
their capital rather than have it discharged in bankruptcy. You
get the interest reduced, the payments reduced and you avoid costly
creditor litigation and the stigma of bankruptcy.
for a free debt consolidation analysis
to learn more about - Next
Question and Answer