When you're falling behind on your multiple bills in Alabama, and creditors keep calling you in order to collect on the debt, you should seek help and advice from an Alabama consolidation or settlement company.
How do Alabama debt consolidation/settlement companies help?
Alabama consolidation/settlement companies offer relief programs to help you pay off your bills comfortably without defaulting. A consultant at the consolidation/settlement company offers a free counseling session where he'll review your finances, and based on your circumstances, suggest any of the following programs:
Alabama debt consolidation:This is a program where a representative from a consolidation company negotiates with your creditors or collection agencies to get them to accept payments at lower interest rate. They may also be able to reduce or eliminate late fees or over-limit charges. The best thing about this program is, you can replace several bills with one monthly payment. Learn more...
Alabama debt settlement:During a settlement program, a consultant negotiates with your creditors and collection agencies to lower your outstanding principal balance. Depending upon the number of bills and the amount you owe on each, you may be able to reduce your outstanding balance by much less than the amount you owe. Learn more...
What are the costs of these programs?
Alabama consolidation and settlement companies ask you to pay certain upfront fees. You will also need to pay a monthly maintenance fee for each account you include in the consolidation/settlement program. If you're in an Alabama debt settlement program, you may also have to pay a certain percentage of the amount creditors agree to forgive, as a success fee.
Do non-profit companies offer these programs for free?
Non-profit Alabama debt settlement and consolidation companies may offer you programs for a low fee. There may be a charitable organization in your area that will offer you free credit counseling. Alabama debt consolidation/settlement programs offered by these companies work the same way as those offered by a for-profit company.
What are the benefits of such programs?
Alabama debt consolidation programs have the following benefits:
- Reduce interest rates on your bills.
- Waive off late fees and penalty charges.
- Pay a single monthly bill instead of many.
- Get rid of bills within a short period of time (4-6 years) comparatively.
Alabama debt settlement programs have these advantages:
- Creditors/CA will reduce the total amount you owe.
- You can have your late fees/penalty charges eliminated.
- You can get rid of creditor or collection calls.
- You will not be sued by creditors/CA.
For further details, refer to 8 benefits of consolidation.
FAQ on Alabama consolidation and settlement
However, if you can't afford to pay your bills in full, you should settle them with the hospital. If you don't think you can comfortably negotiate a settlement, get help from an Alabama debt settlement company. Learn more...