Michael Brazier

The Deal On Debt Consolidation



Posted: Monday, October 12, 2009

by
freedom debt management

Enrolling in a debt  consolidation credit counseling program could greatly assist in reducing your  overall bad credit debts. Like many consumers in America, you probably have 3-5  credit cards at the very least. Keeping up with individual due dates and coinciding  them with your other monthly finances can be very difficult and many consumers  incur late fees from creditors simply because they miss-managed their budget  and due dates. This is one of many concerns consolidating your credit debt can  help alleviate. Consolidating your credit card debt into one simple monthly  payment can help avoid the inconvenience of writing out several checks a month  or online payments.  In addition to, if you're  behind and getting hit with late, past due, and over-limit fees, the fees are eliminated  once an agreement has been made on your behalf by the credit counseling agency.  With the additional amenity of reduced lower interest rates, you can  consolidate your debts with one monthly payment and watch your balances finally  go down as the majority of your payment will go to the balance versus the banks  finance charges and fees.

You make your one  payment to the consolidation company every 30 days and they in turn send it out  to your creditors under a consolidation agreement for the reduction of interest  and other credit counseling amenities. Your creditors will still send you your monthly  statement each month which will show the monthly payments being made, the  stopping of any fees, and the reduced interest rate for enrolling the account into  a debt consolidation plan. Most credit counseling agencies have an in house  customer service department that works directly with your creditors and reviews  statements for their clients to ensure they are receiving the maximum allowable  benefits for consolidating their debts. These certified credit counselors also  call on your behalf and speak to your creditors about payments, rates, and any  questions they have regarding the outstanding debts due that are being managed  by the agency. This then takes the burden of those harassing phone calls off  your line and will probably save you some cell minutes on your plan. See? Credit  counseling has savings written all over it!

How do you choose  an agency you can trust?

Do some homework. Do  they have any testimonials? Are they recognized by the Better Business Bureau? What's  their rating? Are they Nonprofit? Do they have a 501c3 to verify their  non-profit status with the IRS? Is there a free consultation before committing  to a plan? Most nonprofits offer a free budget counseling session first and  foremost to review and evaluate your monthly expenses and see what suggestions  can be made as well to further assist consumers in savings. Is this service  provided? Do they consolidate debts under $10k? Have you heard this one yet?!  These are profit companies watching their bottom line. While many consumers can  benefit from a plan under $10k in debt, most companies frown upon enrolling  such because there isn't much profit to gain off commissions. Do they work on commissions?  Non-profits do not and are mostly hourly employees. Are they going to reduce  your debts or reduce your interest? You want to reduce interest, not the debt  amount, less you're willing to tarnish your credit for seven years. Ask a  certified credit counselor for more detailed information on the difference  between settlements and consolidation.

There are many companies out there that will help you  with the credit debt consolidation process but please realize this is not  free.  Non-Profit or not, each agency has a different way of charging you  but you will definitely have to pay a fee to get this process completed.  Look  out for outrageous fees, like an enrolment fee equal to your regular monthly payment.  True no-profits charge a nominal enrollment fee or waive the fee after a budget  analysis. Monthly service fees should never exceed $50 a month and/or more than  $5 per account enrolled. These companies most likely do not have your best  interest in hand.

Do not let credit card debt cripple you.  Research  and contact different debt consolidation companies and see which one works out  best for you. Each consumer has different financial needs and goals based  on each individuals lifestyles and financial abilities. Make sure you find a  company that can work with you in these instances and provide a payment plan  that fits your budget and ensures a successful credit consolidation program to  be debt free.

For more free financial advice or information on budget counseling,  credit debt consolidation services feel free to contact one of our certified  non-profit credit debt counselors for a free budget analysis and consolidation  quote. Speak to a LIVE Certified Credit Counselor on our website freedomdm.org  or complete our short application for a credit counselor to contact you at a  time more convenient. You can also reach us toll free at 800.905.1563. Good  luck to you and yours in all your future financial ventures.

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