When consumers come to the conclusion that their balances are just not going down, it's at this time as to when they seek a solution to get rid of credit card debt. With increasing compound interest rates, typical finance charges and fees, it's no wonder the desire to consolidate are sought by millions of consumers throughout our country. In summary, we'll explain the key benefits to debt consolidation and how such programs can provide innovative and yet useful tips when trying to consolidate credit card bills.
When looking for tips on how to consolidate debt, they often look to reputable agencies which use their quality effort to lower the interest rates and fees. If a consumer tries to do this on their own, the creditors are less willing to reduce the fees and charges. It's always a great option which a consumer goes through an "A" Rated BBB counseling agency
These programs have helped millions regain control of their financial obligations. Most people make only the minimum payment which is lost in fees and is not applied toward the actual balances. This makes the consumer not have control of what they actually owe and become enslaved to the creditors and their fee structure. The benefits when deciding to consolidate credit card debt is the reduction of minimum payments, reduction of interest rates and if delinquent the program may possibly re-age the accounts to a current status after three consecutive payments. When trying to find useful tips on how to consolidate debt, it's important to consider debt consolidation as the program does yield a great deal of benefits. |
The process on how to consolidate debt
The consumer would need to fill out the debt reduction calculator to find out what the payment would actually be. When going through the discussion, the advisor will explain in detail how to consolidate debt along with the advantages and disadvantages of doing so. While speaking with one of the advisors, they will ask information such as creditor name and estimated balance. At that time, the advisor will show a comparison on what they were doing vs what a debt consolidation program can do to help.If wanting to find a good way to get rid of credit card debt, this program will do it. After the discussion, the consumer will have the option to not proceed or to enroll into a debt consolidation or settlement program. Going through the process, the advisor will ask for the necessary information to complete the enrollment. When going through this process, the applicant will have the option to setup the date for any date they prefer. If the consumer is delinquent on the their bills, after a few consecutive payments in a debt consolidation program the creditor may re-age the accounts to a current status.
After the enrollment is complete and the phone conversation ends, the consumer will be sent documents to enroll into the best debt consolidation program. These documents are typically sent by both US Mail and through a digital web signature. Once signed, the company will begin the process to prepare your file for servicing. Throughout the coming days, the consumer may be asked to send in a copy of their statements. The reason this may be requested, is to ensure that the company has the accurate information necessary to prevent any rejection by the creditors.
After the service agreement and statements are on file, an agency will start by referring the completed documents to a servicing agency for the debt consolidation program. At this time, the proposals will be sent to the creditors proposing the new terms and conditions previously discussed. Once the proposals are received by the creditors, they typically send it back to the consolidation agent with an acceptance or denial. Most debt consolidation programs, over quote the consumer to ensure acceptance
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Each month, a deduction will occur through an ACH draft on the customers checking or savings account. Once this payment is received, it will then be sent to the creditors based on the new terms and interest rates previously agreed upon through the proposals that were sent. As indicated by FICO's web site, debt consolidation is not factored into the consumers credit score.
You have to understand, the benefits to these consolidation loans have been provided by the creditors, not anyone company. They realize that their taking advantage of its customers through fees and charges, and that it's only a matter of time until that customer files bankruptcy. A good majority of its customers make minimum payments, most of which goes towards finance charges and fees. It's for this reason, as to why these debt programs exist.
The top 5 benefits to consolidate debt
- Reduce minimum payments.
- Reduce interest rates.
- Reduce finance charges and fees.
- One monthly payment.
- Not factored into your credit score.
- Accounts will be put on hold.
- Some creditors will not accept the program.
Making the decision to consolidate debt
Several Americans look to consolidate credit card debts on a daily basis. Most Americans are fed up with making pointless minimum payments most of which is applied toward fees and not the actual balance. What the creditors do to the consumers should be considered illegal and wrong. Why should consumers continue to make minimums when the balances never move? This statement is common logic and those whom delay on taking control of their credit cards only find themselves in the same situation years down the road.We have a network of programs that are custom fit to each consumers unique situation. So if you feel as if these balances are not moving, then making the decision to consolidate credit card debt should be a no brainer
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The debt consolidation option works to keep the balance untouched and also works to consolidate bills into one payment. Another key benefit is the reduction of interest rates and charges. In a nutshell, that's pretty much what consolidation does
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The top ways to get rid of credit card debt
We've taken the guess work out of finding the best option to consolidate debt. We've been doing this for well over the years and are contracted with the leading debt management and settlement providers providing ethical and useful programs to our applicants. In addition to this service, the company provides a financial analysis, a useful tool which pays for its self many times over. We always recommends that consumers utilize debt consolidation whenever possible as it's a moral program that keeps the balance intact and works only to reduce interest rates and unnecessary fee's when doing it on your own. .
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