Debt consolidation entails the taking out of a single loan to pay off many other loans. This is often done to secure a lower interest rate, or for the convenience of servicing only one loan rather than many.
Debt consolidation consultants help a debtor who has fallen into the never-ending debt trap. Worried about many creditors that you can no longer make sense of whom to pay and at what time of the month? These consultant offer program with assures to clean up your mess in a legitimate way to avoid bankruptcy.
By using consolidating services, you get to pay less each month than when you were paying each credit card individually, while still allowing the total debt to be paid off in just a few years. You can combine all of your existing debts – such as credit cards, lines of credit or loans – into one regular payment. They will work with you to help you pay one interest rate, reduce what you pay, improve your cash flow and get closer to being debt-free sooner.
Below series of questions and answers are between client and company.
1. What Services Do you Offer?
We provide consolidation services through loan issuing to our customers. Our company offers other services, such as, debt counseling, debt negotiation and debt management. We are able to handle all of your financial assistance under one roof making your management of finance simpler and comfortable.
2. How does Debt consolidation Decrease monthly Debt payments?
Debt consolidation lowers monthly payments for debts in two ways. It allows an individual to extend the repayment period for debt. Since the debt will be repaid over a longer time, each of the debt payments will be less. Keep in mind that owing money for a longer period means that interest must be paid for a longer time, which could result in paying more money over the long-term.
The second way that debt consolidation decreases monthly debt payments is by lowering interest rates for debts. Unsecured debts like credit cards and store cards usually carry a high rate of interest. By using a consolidation loan that has a lower interest rate, an individual may reduce monthly payments, based on how quickly the consolidation loan will be repaid.
3. What should I do if a Credit Card Company Calls me?
Once you enroll with the program, you will automatically stop receiving calls from your credit card representatives. Our program’s representatives will advise you what to do if you continue receiving the calls.
4. What Payment methods do you accept?
Payment we consider in our company is the use of an electronic debt payment system. If you prefer paying by check or money order kindly inform our agent during your initial call to the company.
5. What is my Payment due date?
According to Befreefinancial.com and www.debtconsolidation.com.au recommends to make the payment to our debt consolidation company must be at least ten days before any of your credit card due dates to give our program time to disperse the funds to your various accounts.
6. What will happen when I pay off a Credit Card?
If you enroll multiple credit cards into the program, it’s inevitable that they will be paid off at different times. We recommend it highly continuing to pay the same amount throughout the program even after an account has been paid. The extra money will be applied to your other credit cards, which will help them to be paid off more quickly.
7. Can I use my Credit Card after I pay off the collections agency?
No. Once it is sent to a collection agency the company has closed the credit card.
8. What if I want to Leave the Program Later?
We understand that situations change, and you may decide later that you no longer want to use our debt consolidation company’s services. In most occasions, you will be able to resume paying each credit card account individually on your own without a problem.
For more information visit the following resource centre:
Image Source: http://blog.readyforzero.com
Mercy Limo loves to write financial articles and she is a contributory writer associated with the Public Care Community and has written several articles on different niche. She holds her expertise in the journalism industry and has made significant contributions through her various articles.