debtconsolidationconnection.com
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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 offering a debt consolidation program 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%.
Is Debt Consolidation For You?
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 debt consolidation 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".
Debt Management Program: Online Enrollment
Our Online Enrollment Program allows you to sign up for the Debt Management Program without the assistance of a credit counselor. It's an easy online application in 6 simple steps.
Who should consider auto-enrollment in a debt management program?
- If you are familiar with debt management plan (DMP) benefits, policies and procedures
- You determined that a debt management plan is the best solution for you based on your current situation and you have already completed a budget plan.
- You are comfortable with “online applications” and have high-speed Internet access.
Before enrolling in a debt management plan (DMP) you should have exhausted all other options to re-pay your debt. While DMP’s can be a good options for some, these plans are appropriate not for everyone. Make sure you really need to enroll in a DMP. DO A WRITTEN BUDGET PLAN. If it’s possible to cut expenses and pay extra towards your debt, maybe you don’t need the DMP. Review all other possible options to pay your debts such as home equity lines of credit, borrowing from 401k or retirement fund. Another possible option is an increase in income. Perhaps an increase in pay at your current job? Perhaps a second job. If you have exhausted all other options, then a DMP may be a good solution. Remember this auto enrollment process is designed only for consumers who have fully evaluated their situation and have pre-determined that a DMP is the best option for them.
