subject: Debt Consolidation Programs – Who Does This Make Financial Sense For? [print this page] Individuals who desire to have their debt reduced as well as save on the high interest rates they are paying needs a good debt consolidator. The benefits of a good debt consolidator are as follows:
1. One Low Payment Monthly: Debt consolidators combine all of your debts and design an easy to manage payment system. All you have to do is to send the monthly payment to your debt consolidator and he will be the one to take charge in paying all of your creditors. These bring convenience and ease to you in managing multiple payments.
2. Lower Your Rates: Some debt companies can even talk to creditors on your behalf to get your interest rate reduced. In doing so, you can pay fewer interest fees, and save more money to pay off your principle balance.
3. No Need to Deal with Collection Agencies: Once you sign up with a debt relief agency, an assigned debt consultant will act on your behalf and deal with your creditors as well as collection calls or letters. This means no more annoying calls at all hours of the day numerous times a day.
4. Build-up Your Credit Reputation: Defaults including late payments and charge offs are just few of the negative factors that can ruin your credit score.
A good debt consolidator will design a new payment structure that is suitable to your financial profile and acceptable to creditors. This will result in paying your creditors consistently and on time. After you have paid all of your debts, your debt consolidator can request from your creditors a favorable credit score that will be reported to major credit bureaus.
5. Quick Debt Payment: The debt consolidator makes a strategic monthly payment plan. Most clients usually pay more than the minimum amount required expecting that it will help them settle their debt quickly. A seasoned debt consolidator will help you pay your debt in as short as 3 to 5 years compared to an average of 20 years.
Besides the benefits mentioned above, many debt consolidation programs now offer a free counseling section for prospective clients, which can help debtors review their current financial situations and analyze what options available to help them become debt free faster.
Debt Consolidation Programs Who Does This Make Financial Sense For?
