Debt consolidators - How they help you to consolidate your debt
If you wish to obtain lower monthly payments on your bills and replace multiple debts with a single monthly payment, then you may take help of debt consolidators to negotiate on your behalf. Debt consolidators work for a debt consolidation company and offer services to help you manage your bills and get rid of debt faster.
How debt consolidators can help you
Debt consolidators provide you with a debt consolidation program in which they negotiate with creditors or collection agency to simplify your monthly payments and reduce or eliminate late fees and over-limit charges (for credit card debt). Every consolidator usually starts off with a free consultation session wherein he evaluates your financial standing and determines how much you can pay your creditors on a monthly basis.
Once the free consultation session is over, the debt consolidators will help you get enrolled in the consolidation program and then guide you throughout the process till you pay off your bills completely. Here's how debt consolidators can help you while you're in a consolidation program.
- Negotiating with creditors: Debt consolidators do an income and expenditure analysis and propose a payment plan to the creditors or collection agency (CA) after taking your approval. Then they start negotiating with the creditors and CA in order to reduce your interest rates and freeze late payment fees and penalty charges on your accounts.
- Accepting monthly payments: Once you start sending monthly bill payments to your debt consolidator, he'll distribute the payment amongst your creditors and CA.
- Monitoring your financial situation: The debt consolidator monitors your financial situation in every 6 months. He may negotiate with creditors/CA to let you obtain a different payment plan depending upon any change in your financial situation.
- Budgeting and money management: Debt consolidators will help you develop a well-planned budget so that you can continue with the monthly payments without going into default. You'll also get useful tips on how to manage your money better.
- Stop harassment by creditors/CA: The debt consolidator manages all communication with your creditors and CA. By helping you to meet up your monthly payments, the consolidators protect you from harassment by creditors or CA.
- Helping you to save more: Debt consolidators help you save thousands of dollars as they work towards reducing the interest and late fees you pay on your bills. Thus, they reduce your debt burden and simplify your financial life.
How to choose the best debt consolidator
Here's a 4-point checklist on how to choose the best debt consolidators.
- Check out online reviews and client testimonials about the company.
- Find out its online reputation with the BBB report.
- Ask about their fee structure for offering the consolidation program.
- Check out the accreditations of the company.
No doubt, debt consolidators can help you get out of a debt trap and restore your finances back in order. They offer you an organized payment plan to pay down your debt without the hassle of managing multiple bills and handling creditor/collection calls.
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#1
08-23-2006, 11:22 PM
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Join Date: Aug 2006
Posts: 1
Credits: 81
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Sub:
Debt consolidators - How they help you to consolidate your debt
I have roughly 30+K in debt and have been out of work for over two years. Min wage employment hasn't put food on the table, let alone let me pay off my debts. I have never filed bankruptsy and am trying to avoid doing that. Most my debts are credit cards dating back 4-6 years, bad checks debt and school loans. The school loans I'm not worried about since they are small and $50 in payments a month are managable. I don't know if I should ignore the debt and let it come off my credit eventually or make payments. I don't see payments of more than $5 a month possible since I own so many people .. at least 30 companies owed right now. Some of these debts are nearly seven years old and some are just last year and 2004. There are a few mistakes on my credit also that I have challanged but can't seem to get them removed, one is a double charge on my credit as being in debt to one company in 2001 for $295 and in 2001 for $296. It was one of these but not both and I have tried to get one removed but the they say both are valid. Help please with any suggestions. I am not a home owner, so I believe I can't consulidate my debts. Is this correct?
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#2
08-24-2006, 06:37 AM
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Sub:
Hi Jamie, welcome to the forums!
First off, how did you view your credit report? If you viewed it online, you can dispute debts easier. If it was mailed to you, then you'll have to request for validation. Either way, disputing the debt will make the reporting agency check to see if said debt is valid. You can also try writing a validation letter to the companies you owe, clearly outlining your request. There are several sample letters around in the forums (I can supply a sample). Have you had any thoughts on debt consolidation? Depending on the amount of your debt, this could be an option for you. Entering such a program will help eliminate some interest that is racking up too. If you've requested for a debt consolidator to contact you when you signed up, you'll get a free consultation soon. Please stick around in the forums too. As all the members are here to help. Regards Mike
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#3
08-24-2006, 02:50 PM
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Guest
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Sub:
Thanks!
Hi Mike,
I did review my credit reports (three) online and disputed three items or more, two of which were removed because of age and the other two were left on the report. I now recieved copies by mail yesterday because I put in a complaint for possible identity theft. I also had noticed applications for credit that I never requested. I did fill out the form for counselor to call me and hopefully they can answer some questions. Thank you for your help again!
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#4
08-24-2006, 03:24 PM
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Sub:
Welcome
 Yes,someone will be contacting you so maybe you'll have some more answers.That's great you are cleaning up your credit report,it's a pain,but well worth it. Did someone steal your identity,or you suspect it?Gosh,I hpe not,for your sake. Good Luck!...Karen
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