subject: Benefits of Enrolling in Debt Consolidation Programs [print this page] A good debt consolidator can help individuals reduce their debt as well as save on high interest rates they are paying. Listed below are some of the great benefits of using debt consolidation programs.
1. One Low Monthly Payment
Debt Consolidators take all of your debt and puts it into one, easier to manage payment. All you need to do is to make a monthly payment to the debt consolidator, who will separate the money and send it to all of your creditors. This means there is no need to make multiple payments to your creditors one by one.
2. Lower Your Rates
Some Debt Consolidation Programs 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. Improve Your Credit Standing
There are many negative factors that could affect one's credit score, including defaults, late payments, charge offs and more. By working with a good debt consolidator, a new payment plan will be structured, making it much easier to pay all your creditors. This means an increase in your credit score over time. Once all of your bills are paid off, your debt consolidation consultant will communicate with all of your creditors to get your accounts reported favorably by major credit bureaus.
5. Pay off Debt Quicker
When the debt consolidator creates a new monthly payment plan, clients usually pay more than the minimum amount due every month, so that their debt will vanish quicker. A good debt consolidator help you reduce and even eliminate debt in as little as 3-5 years as opposed to a whopping 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.
Benefits of Enrolling in Debt Consolidation Programs
