What is Debt Consolidation?

Debt consolidation is the combining of all your unsecured monthly bills into one lower monthly payment and lowered interest rate. Although our service is NOT A LOAN we are able to assist clients in dramatically reducing their overall interest rate, monthly payments, and most importantly pay-off time.

All this is done through a non-profit community organization that was designed to assist consumers in the repaying of their unsecured debt. As a non-profit agency the creditors receive certain tax savings for contributing to the program, in return they offer reduced interest amounts sometimes as much as 0%. But only through an approved non-profit credit counseling company can you obtain the best rates.

How does the program work?

A certified credit advisor will contact your creditors to get your interest rate and monthly payments reduced to an amount that you can afford to pay. Many debt consolidators already have working relationship with these creditors and will know exactly how to get the best deal for you.

In addition, you no longer pay your creditors directly. All of your debts are consolidated into one manageable reduced payment to the debt consolidation company. The debt consolidation company in turn pays your creditors on your behalf monthly.

How much money can I save consolidating my debts?

Most credit counseling agencies can help to dramatically lower your overall monthly payments as well as collective interest charge. An example of a client with a $4000 balance on a Citibank, MBNA, Chase, and Associates card for a total of $16,000 in debt with an average interest rate of 22% would see the following benefits from a debt consolidation program:

How much does this service cost?

Amazingly, your creditors subsidize all or a large part of most debt consolidation services. Before you say this sounds too good to be true, keep in mind that your creditors are not lowering your interest rate and making it easier for you to make smaller payments out of the goodness of their heart. They realize that if they don't help you out a little, you may file bankruptcy and they will likely collect nothing.

Through debt consolidation services they can at least recoup the principal on your debt. In addition, you will notice that most debt consolidation companies are organized as "non-profit" companies. This allows the credit companies to recoup a significant portion of the "lost interest charges" through tax write-offs.

So take advantage of this great service. Contact us for a completely free consultation and a certified credit advisor will teach you how you can begin saving on your interest charges within a couple of days.

Will I still receive harassing phone calls?

Upon enrollment into a debt management program your collection calls will begin to dissolve as the non-profit credit counseling agency begins to handle your account. Within as little as 2-4 weeks you can begin to answer your telephone again knowing it will not be a creditor.