Debt Consolidation Community: 4 Ways to fight debt - Already helped 237900 members!


How much to save by consolidation
Amount you can pay monthly on your debts.

Is debt consolidation good for you?

Debt consolidation is good for you when you're unable to manage multiple debts and make several payments each month. Debt consolidation program is a popular debt plan to replace your multiple bills with one easy and affordable monthly payment. It helps you pay off debt at your own comfort. Debt consolidation enables debtors to pay less each month and save dollars. Find out the 8 benefits you can take advantage of when you consolidate debt.

5 Ways to pay off debt and establish a solid financial footing

Have a look at the 5 ways to pay off debt and lead a comfortable financial life.

  1. Interest rate arbitration: This is where you obtain a secured loan at a low or favorable interest rate to pay off your existing unsecured debts. It helps you manage debts by reducing your interest rates and monthly payments.
    Interest rate arbitration pros
    • Interest rate reduction
    • Lower monthly payments
    • Gradual increase in the credit score
  2. Debt management: This is where you get debt counseling and advice from debt counselors. They helps you plan your budget, and negotiate with your creditors to lower your interest rates.
    Debt management pros
    • Lower interest rates
    • Elimination of late fees and penalties
    • One easy monthly payment
  3. Debt settlement: In this debt plan, the settlement company/law firm checks your financial health first. Thereafter, they create a trust account for you and negotiate with your creditors/collectors to settle debt.
    Debt settlement pros
    • Lower payoff amount
    • Less interest rate
  4. Chapter 13 bankruptcy: This is where you can discharge your debts within a period of 3-5 years under supervision of the court. Chapter 13 is favorable for those debtors who want to keep their properties, and have a regular source of income. This is also known as wage-earner's plan.
    Chapter 13 bankruptcy pros
    • Interest rates are lowered
    • Principal amount is reduced
    • No need to sell assets and properties for debt repayment
  5. Chapter 7 bankruptcy: This is where your non-exempt assets are sold by the court-appointed trustee. The sale proceeds are used to pay off your debts. You can discharge your debts within a period of 3-4 months.
    Chapter 7 bankruptcy pros
    • Interest rate is reduced
    • Reduced outstanding balance
    However, your credit score will drop by 200-250 points and it'll take some time to rebuild your damaged credit.

Debt consolidation - How it works

Here's an example of how consolidation works:

Suppose you have accumulated debt on 2 credit cards, as well as medical bills and a personal loan. The details of these accounts are:


Outstanding balance on credit card X (15%) - $15000
Outstanding balance on credit card Y (20%) - $12000
Amount you owe on medical bills (13%) - $13000


So, the average interest rate = (15% + 20% + 13%)/3 = 16%


After you enroll in a consolidation program, the interest rates on your debts are negotiated down to:

Credit card X - 10%
Credit card Y - 16%
Medical bill - 10%

So, the average interest rate = (10% + 16% + 10%)/3 = 12%


Now if your total debt amount is $40000, you'll save = (16% - 12%) * 40000 = $1600 per year

Debt consolidation solutions for people with various debt problems

  1. People who are going through payday loan hell
    Payday loan consolidation: An option for those debtors who are unable to get out of payday loan cycle. The payday loan consolidation companies offer debt assistance to people going through payday loan hell. They give effective debt advice to the consumers and help them to consolidate their payday loans into a low single monthly payment.
  2. People who are going through credit card debt problems
    Credit card consolidation: It helps you in consolidating your debt into one easy monthly payment. The debt consultants of America co-ordinate with your creditors and convince them to allow you pay credit card bills in small monthly installments. If you're in military service, you may enroll into a military debt consolidation program to get rid of credit card debt.
  3. People who want to lead a Christian life by getting rid of debts
    Christian debt consolidation: It works just like a conventional debt consolidation program and is based upon the Biblical principles. This program helps Christians to free themselves from the bondage of debt, so that they can worship God whole-heartedly. The Christians can use debt consolidation services to eliminate debts and give their full attention to God.
  4. People who often miss bill payments
    Bill consolidation: This is where the interest rates on credit card bills, hospital bills or store card bills are reduced, and the late fees and penalties are eliminated. You can pay off your delinquent bills through small monthly payments and save dollars.
  5. People who are unable to manage unsecured debts
    Debt consolidation loans: You can take out a secured or unsecured debt consolidation loan to pay off your multiple bills at once. After the consolidation of debt with this new big loan, you'll have to make an easy monthly payment to the lender. This is also referred as loan consolidation. If you have poor credit score, then you may go for bad credit debt consolidation loans.
  6. People who want to pay nominal fee while consolidating debts
    Debt consolidation non profit: This program/debt service is offered by a company that has received non-profit status from the IRS. However, keep in mind that this is not a free debt consolidation program. The non-profit debt consolidation companies charge a nominal fee for helping you in paying off debt.

Debt consolidation statistics

Debt consolidation statistics show that consumers can save as high as 90 percent, on their existing debts provided they follow basic 7 financial principles:

  1. Send regular payments to the debt consolidators.
  2. Spend as per their financial means.
  3. Make timely payments on other accounts.
  4. Avoid opening multiple accounts at the same time.
  5. Avoid spending unnecessarilty.
  6. Stay away from new debts.
  7. Stay within their budget.

The debt consolidation success rate will be high when the consolidators can:

  • Review your financial condition accurately.
  • Negotiate with the creditors/collectors competently.
  • Persuade creditors to reduce your interest rates.
  • Set up a suitable repayment plan.
  • Send monthly agreed amount to the creditors/collectors.

Finally, keep in mind that online debt consolidation will not help you pay debt off within a few days or weeks. You haven't incurred debt in a single day. So, it is unfair to assume that you'll be able to get out of the debt cycle within a few days.

Our community offers 8 tools to fight with debt

Check out the 8 tools you can use to resolve your debt issues.

  • USA debt relief companies: You can check out the company credentials and start working with a reputable settlement or consolidation or management firm to pay off debt.
  • Comparison chart: Compare various debt relief options like debt consolidation vs settlement and debt consolidation loan vs program before reaching any decision.
  • 32 Sample letters: You'll need to communicate with your creditors/collection agencies (CAs) in writing at various points of time. You can print and fax letters to the creditors/CAs/credit bureaus while negotiating, validating and disputing debts.
  • Forums: This is a platform to share your financial problems and get free debt advice from the community members.
  • DebtCC answers: This is where you can ask any financial questions to experts. They can give you useful advice on debt consolidation, management, settlement, etc.
  • Free debt calculators: These are smart financial tools that help you compute your debt amount and figure out the amount you can save through various debt plans.
  • Earn dollars: Check out the 8 easy ways to earn dollars and use them in paying off debt.
  • Get rewards: The community offers various rewards ("Hall of Fame", "Debt Samaritan", "Moderator") to members for their active participation.

Latest Related Discussions

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2012-02-04 03:25:03


2012-02-03 09:58:47

Michael ShapiroRecent reports by the Bureau of International Recycling shows ... Recent reports...shows? Do you got da spell check tool? Jeez!
2012-02-02 13:37:43

Nelly Brown Hello Brooks, Your client is not the first person who has received such calls. Several other people have received threatening calls from this number. This particular ‘nameless’ company has threatened to file criminal charges against several people. It is clear that they are trying to scam people. They are breaking all the laws ruthlessly. It can be Titan Group LLC. But I am not 100% sure. It is best to ignore such calls. If your client receives the call, then ask her to not disclose personal or confidential details to the caller.
2012-02-01 20:07:03

Brooks William Conover, III d/b/a Conover Law FirmI have a client who received a phone call from the Titan Group, LLC. We have both made several phone calls to 877-394-5817. No one answers the phones and we have to leave messages. The answering machine does not state who the company is that we are calling. In the initial call to my client, they tried to frighten my client by suggesting that this "matter" could affect her professional license in a medically-related field. Not once did they ever state that this was a debt collection type of agency. This type of cold call violates both state and federal fair debt collections statutes. If you have received a similar call, please feel free to contact me. I would like to know if this is Titan's standard MO.
2012-02-01 14:01:19

Yusep Sugiantowell, be careful with your debt. it will makes you stress.
November 12, 2011 at 1:29pm

Bringing Back Motown i have a great program for credit card debt 0 risk no money down
November 19, 2011 at 5:22am

Patrick Saint-JeanThis is a service that anyone can use to get out of debt. It is not a good thing to be in debt, so people have to be responsible and live within a budget. Throw out all the things that are not necessary and stay disciplined. Focus on generating a larger income if you want more luxuries and more freedom for your purchasing habit.
December 7, 2011 at 3:30pm

Nelly BrownHi Lea, All the debts that you have listed here are unsecured debts. In order to consolidate all your debts into one single payment on a monthly basis, you should go for the option of debt consolidation program (http://www.debtconsolidationcare.com/program.html). You can do it on your own by negotiating with your creditors or you can take the help of a debt relief company for the same. If you take the help of a debt relief company, then you’ll go for a free counseling session with their consultant. This consultant will evaluate your situation and let you know how much you need to pay toward your debts. Once you enroll in the program, your debt consultant will start negotiating with them for a payment plan. Once your creditors and you agree to the payment plan, you will have to start sending the monthly payments to the debt relief company who will distribute it amongst your creditors. Once the debts are paid off, your credit scores will also start increasing slowly. The best part of this program is that your extra charges and the late fees can be forgiven.
May 2, 2011 at 4:22am

Lea BlankenshipI have quite a few small debts to banks and a few small credit cards and a small repo amount. How can I consolidate all of it unto one payments to pay it off so I can clear my credit report? Thank you.
April 19, 2011 at 2:44pm

Nelly Brown Hi Donna, I am deeply sorry to know that your father and mother are fighting a tough battle. It is encouraging to know that your parents have taken the responsibility for bringing up your daughters. There are some grants available for the aids patients. You can glance through the following pages to get more details about them: http://www.usaid.gov/our_work/global_health/aids/Funding/grants.html http://www.gatesfoundation.org/grantseeker/Pages/funding-hiv-aids.aspx http://www.ehow.com/list_7242213_grants-hiv_aids.html http://www.until.org/grants.shtml A lot of charitable organizations work for the benefit of the aid patients. Your parents can also contact them. If your parents qualify for the grants, then they can use a part of the money for the education of your daughters and for other purposes. If they wish, then they can also apply for the federal student loans.
April 18, 2011 at 10:34pm

Donna Whittington please anyone with sugestions 4 a grandmother and grandfather with Aids trying 2 help my daughter raise her 2 girls and afford school, possably more stable housing (our own home???) and maybe something 4 the girls, let me know about grant/grants. THanx
April 18, 2011 at 6:20am

Nelly BrownHello Terry, I think it is better to consult an attorney regarding this matter. An experienced attorney can give you the right advice on this issue. If any judgment order has been issued against you in the past, then it is likely to remain on your credit report for around 7 years.
April 17, 2011 at 10:21pm

Terry DeWittjust rec'd a class action notification from a Federal Court regarding a class-action lawsuit against Midland Funding. the case is Andrea Brent V. Midland Credit Management, Case # 3:08-cv-01434. joins in the suit, he will recieve approx. $10.00 and will be bound by the settlement.... that's just fine, but what about getting the current judgement vacated and removed from our credit?? If I join in this suit, will we be able to do anything about that? Any suggestions/advice would be appreciated. THANK YOU Terry
April 17, 2011 at 10:13am

Nelly BrownHello Mary, You can pay off the student loan and medical bills through debt consolidation. As the interest rate on a debt consolidation loan is lower than that of the student loan, so it will be not be difficult for you to make the payments. You only have to make one monthly payment on the new loan. To know more about debt consolidation loan, glance through the following page: http://www.debtconsolidationcare.com/loan.html You can also repay your medical bills and student loans through debt management plan. Check out the following page to know how debt management works: http://www.debtconsolidationcare.com/debt-management.html As far as child support debt is concerned, you can have a portion of your wage (considering you are working) cut every month to pay the child support. Thanks,
April 14, 2011 at 2:13am

Mary Richardson Hi! My main debt is child support and then school loans behind that. I dont have any credit card debt, but i do have medical bills from the time i was 14. My question is does debt consolidation help with child support or school loans? If not, what is my best option?
April 13, 2011 at 3:16pm

Liz MartinezHi I have debt that i am trying to get paid off from 4-7 years ago. Is there any debt consolidation company that will help me?
April 3, 2011 at 4:22pm

Meme GilstraphI, CAN SOME ONE PLS HELP......I have been rapidly trying to fix my credit report and withing 2yrs have went from 500 to 601 and this all with and income of 860 a month. Last month a collection ageny posted a debt against me that I had from Apr of 2005 ( this is the 1st I have even heard or seen of this bill) anyways it dropped my score 22 pts..........how can they do this and how long will it stay on my report? also an collection agency posted last month and increase in the amount that I owe them and this has been on my credit report since 8/2005 can they actually do this since it has been on my credit report this long & how do it affect my credit report will it make it stay on longer? PLS PLS HELP
March 30, 2011 at 2:25pm

Susan Mcknight-Hubbardi used debt fee assocaites and have paid several thousand dollars no debts have been settled and know I being sued by city bank. should I file for chapter 13 bankruptcy
March 23, 2011 at 4:31am

Al Spicer OUR GOAL IS TO PAY OFF ALL OF OUR DEBT ASAP W/O BANKRUPTCY WE HAVE FOUND A WAY TO PRODUCE A SUBSTANTIAL EXTRA INCOME. AT THE SAME TIME ELIMINATED OUR OUT OF POCKET EXPENSE FOR GROCERY ,GASOLINE,CLOTHING AND ALMOST ALL OF OUR OTHER HOUSEHOLD EXPENSES
March 15, 2011 at 7:03pm

George X Robinson Can private student loans be consolidated? If yes, how? Also, can private student loans be ignored by the borrower and avoid prosecution or punishment for lack of payment of the loans?
March 4, 2011 at 5:32am

Wystan NorthThat’s some very sound advice, people may think that bankruptcy is their only option but it isn’t. You offer the alternatives that people should be aware of, there are ways around bankruptcy and how to deal with debt. Hopefully people looking for help will come across this post.
February 25, 2011 at 2:28am

Joyce BakerI think if your substantially in debt perhaps going to a debt consolidation company to where your debts can be lowered and one monthly payment over a period of time to pay debt off sounds like a sensible way to handle the situation and keep a good credit standing.
February 19, 2011 at 9:53am

Virginia VogtHey, it worked! Just unselect that box and none of your friends on Facebook have to know what you are doing here.
February 16, 2011 at 7:40pm

Virginia VogtAll I did was unselect the "post comment to my Facebook profile" box - let's see if that works and if it does then I don't know what all of you are complaining about with having to share this information with your friends...
February 16, 2011 at 7:39pm

Alanya Emlakthanks
February 2, 2011 at 9:29pm

Jason HolmesAnother option can be debt consolidation. You can take out a low interest debt consolidation loan from a bank or financial institution and merge your debts into a single loan with a low interest rate. If you have good credit and income, then it won’t be difficult to qualify for a low interest consolidation loan. Just keep on making one affordable monthly payment on the loan for few years and become debt free. Another positive thing about debt consolidation is that it doesn’t hurt your credit score. So, contact your local lenders and work with the person, who offers you the best deal.
January 19, 2011 at 10:12pm

Peter Espinoza To the person who has 35,000 in debt and wants to pay 300 for 10 years, just one thing. If you are paying interest on your cards or it's 1% interest rate then I'm sorry to say that this is impossible (300 x 120 (months) = $36,000) . If this is the only option, you might have to stop paying your credit cards so you can show them that you are no longer capable of paying them and then negotiate with them a payment structure, you might end up paying less than what you currently owe and not be in debt for 10 years. hope this helps
January 16, 2011 at 8:27pm

Edel Adelgood
January 12, 2011 at 5:16pm

Nancy Silas Roach There is some extremely helpful information on this site. FYI, sample letters, tips, etc.:)
January 12, 2011 at 3:14pm

Marie Deary“Running into debt is not so bad; it’s running into creditors that hurts!"
January 10, 2011 at 6:45pm


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* Disclosures:
  • By signing up for counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
  • Some creditors and collection agencies refuse to lower the pay off amount, interest rate, and fees owed by the consumer.
  • Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
  • Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
  • The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.
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