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Free Debt Consolidation

We provide free consumer credit counseling and debt management services for people overwhelmed with credit card debt. 

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What 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 option.

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.

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