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1. How long does it take to pay off
my debts after consolidation?
Most people are able to get out of debt in 3 to 5 years after the interest rates
on their debts have been reduced, under a debt management plan.
2. What kind of debts can I
consolidate with these types of programs?
Most unsecured debts can be included in a debt consolidation program. Typically:
Credit Cards, Unsecured Personal Loans, Medical Bills, Student Loans, Some Taxes,
Charged-Off Accounts, and Collection Agencies. Secured loans such as a Mortgages
or car loans cannot be consolidated.
3. Are all creditors willing to reduce
interest rates?
Due to the high amount of debt which exists today in the United States, most creditors
are willing to reduce interest rates. We have established an excellent reputation
with creditors and they are happy to work with us because we provide you with
an option to willingly repay your debt obligations instead of declaring bankruptcy.
4. How will debt consolidation affect
my credit?
If you are currently delinquent on your accounts, we can request that creditors
re-age your accounts to bring them to current status. If you are paying your bills
on time and have too much debt, a debt repayment plan can only help improve your
credit rating by reducing your overall debt to income ratio. The best credit rating
comes from paying on time. We make it easier for you to make payments timely.
5. Will I have to give up my credit
cards?
Unlike other credit counseling services that require you to close out all of your
accounts, only the accounts that you are consolidating will be voluntarily closed
out.
6. How does debt consolidation differ
from declaring bankruptcy?
The objective of bankruptcy is to absolve oneself of debts altogether. This financial
strategy, however, has serious and long-term drawbacks,
which may negatively affect your life for decades. Bankrupycy can negatively affect
you when: applying for life insurance, purchasing a business, buying a home, applying
for a job, etc., Under a debt management plan, you commit to repaying your debt
obligations. Thus, one can repair bad credit, maintain a good credit rating and
return to a debt free lifestyle quickly and without all the frustrating negative
consequences.
Become debt free!
