Debt
consolidation is the most benign
and responsible way to seek debt relief when suffering a financial
crisis. A good credit counselor asks several questions when
consulting with you about your financial situation. These
considerations are as follows:
You
must be able to afford your new monthly payment through debt
consolidation.
You
know that you cannot get out of debt making minimum payments at high
interest rates.
After
making those minimum credit card payments, you have very little money
left, if any.
You
are not purchasing a major asset within the first year of your
program.
Necessary
concessions:
In
the short term, in debt consolidation, your credit will be affected
but it should improve steadily after approximately one year of
participation. This is far more desirable than the results you
obtain from debt settlement or bankruptcy.
In
debt consolidation, it takes between 4 to 6 months for some of your
accounts to be re-aged and brought current and for late fees to stop
accruing. This is not an unreasonable amount of time to wait
when considering the length of time it takes an attorney to handle a
bankruptcy or debt settlement negotiation.
While
in debt consolidation, your credit card accounts will be closed.
This may not be an undesirable consequence since the temptation to use
your credit cards is removed. You will be able to obtain credit
when you complete the debt consolidation program if you adhere
to the program requirements.
You
must be committed to your debt consolidation. If you skip your
program payments, some of your creditors might disallow your
participation in debt consolidation for an entire year and even more
in many cases. This, however, largely depends on the
creditor. Most creditors are not so harsh.
You
will not be able to obtain additional credit during the term of your
debt consolidation program. However, a major asset purchase,
such as a home, is possible after approximately one year of
participation.
The
success of your debt consolidation program almost completely depends
on YOU. That's right! Be as proactive about getting
out of debt as you were when you incurred it. Don't sit back and
expect your creditors to make this easy. You must send your
creditor statements to the payments and proposal center on a monthly
basis for at least the first six months of your program in order for
your accounts to be monitored.
Creditors
do not notify the center as to the progress of your accounts.
They notify YOU on your statements. This is true for any
company you enroll with. If you're shopping around, make
sure that the company you enroll with is in the habit of performing
six month audits of your accounts to correct any ongoing problems.
Stay
Informed. Remember, the largest debt you owe is to yourself.
Simply
fill out our quote form and start on your way to financial freedom.
If you are interested in debt consolidation, debt
management or even an equity line, contact us for more debt solutions
information.
Provides
debt counseling and credit management services for loans and credit card
debt.
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