Is Debt Consolidation For You?


Want to pay all your bills with one check? Debt consolidation may be the answer. It's not a loan or bankruptcy but a program, run primarily by nonprofit organizations, that helps reduce interest rates, eliminate late-payment fees and lower payments.

With consolidation plans, organizations such as Consumer Credit Counseling Services and Myvesta.org arrange for you to pay off your debts within three to five years, although it may vary depending on your needs. That's a pretty attractive idea, considering it takes the average person 10 to 20 years to make credit balances disappear. However, participating in a consolidation program could affect your ability to get new credit or a loan because some creditors will put a red flag to lenders on your credit report. Here's how the plan works:

1. After giving a program counselor the account names, numbers and balances that you want to combine, she will help you work out a budget and determine how much you can afford to pay toward your debts.

2. The consolidator will then contact your creditors and work out payment arrangements. (Most consolidators charge up to 15 percent of your monthly payment to cover program costs.)

3. You make a monthly payment directly to the consolidator, who will pay the creditors on your behalf.

4. The accounts placed in the program are frozen until they are paid in full. To learn more about debt consolidation, go to http://www.1debtfreedom.com

Talbert Williams offers debt consolidation referrals and advice. For more information, articles, news,
tools and valuable resources on debt solutions, visit this site: http://www.1debtfreedom.com

About Author

Talbert Williams offers debt consolidation referrals and advice. For more information, articles, news, tools and valuable resources on debt solutions, visit this site: http://www.1debtfreedom.com

Source: ArticleTrader.com


Other articles in Home Security category

Home Improvement Money Saving Tips

This interesting article addresses some of the key issues regarding Saving Money . A careful reading of this material could make a big difference in how you think about Saving Money . The more authentic information about Saving Money you know, the more likely people are to consider you... More...

Remodeling Your Bathroom: Should You Hire a Professional Decorator

Each year, a fairly large number of homeowners make the decision to have their bathrooms remodeled. Are you planning on becoming one of those individuals? If so, there is a good chance that you may be unhappy with the current state of your bathroom. If you are, there is a good chance that you... More...

Home Security - An Overview

Home security is a bigger issue today than ever before given the increasingly unsafe environment we live in, and should be undertaken with knowledge and care. Before installing any system, it is important to create a plan, so grab a pencil and paper, and go round your property deciding... More...


web tracker