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Debt Consolidation

Debt Consolidation Programs benefit consumers with an average unsecured debt of $5,000. Unsecured debts include credit card debt, medical bills, service charges, personal loans, signature loans, store credit or charge accounts, gas charge accounts and certain installment loans. They reduce overall monthly debt, save on interest fees, help you to establish a monthly household budget, improve your credit rating by paying creditors in a timely fashion and end collection calls to your house.

Your "fixed monthly consolidated payment" is calculated according to the lowest payment amount accepted by your creditors. The agency you have hired will distribute the amount of your "fixed monthly consolidated payment" to each creditor. Most creditors will only reduce or stop your interest fees if their minimum payment is met, but if so, the interest rate reduction with these programs can range from no change to the freezing of interest depending on the creditors policy. This can save you thousands because rates that are usually 12%-24% can get reduced to 10%, 8%, 6% or 0%.

Debt Consolidation can:

• Help avoid filing bankruptcy
• Eliminate creditor harassment
• Lower debt payments up to 50%
• Provide one monthly payment

Usually upon entering a debt management or credit card consolidation program you would have to close your credit card debt accounts (as well as others). This is a benefit because it will help curb your current spending and it's probably what method caused your debt originally. Sometimes you'll find that you can still own one or two credit cards for emergency or if it's "secured".

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