Mixed Feelings

I have mixed feelings starting debt consolidation. Can anyone let me know the pro and cons?

Pros

* Reduced Monthly Payments: The significant decrease in the monthly payment is probably the most alluring benefit.
* Reduced Interest Rates: You may be able to get a lower interest rate.
* One Payment, One Creditor: Writing one check may be easier than writing multiple checks, and you only have one creditor to deal with.


Cons


* May Cost More Overall: Even though the monthly payments and interest rate might be lower, you can end up with a longer-term loan in which you end up paying more interest in the long run.
* May Take Longer to Pay Off: If you don't end up using the extra monthly savings to pay off your loan (and perhaps even if you do), it could take you longer to get out of debt.
* One Payment: In some cases, it can be beneficial to pay off smaller loans with higher-interest rates first. You don't have that option if you've lumped all your debt into a single loan.
* May not Qualify for a Loan: It's possible that with so much debt, you may not qualify for an additional loan. Or, if you do qualify, the interest rate might be high.
* Disreputable Debt Consolidation Companies: Not all non-profit debt consolidation services are looking out for your best interests.

thank you very much

Debt Settlement programs do not reduce your interest rate. I think Stephan is refering to credit cousiling where an agency negotiates with your creditors to bring down your rates. Debt Settlement involves zero interest and reduces your balances by 45%.

Most of this information Stephan has here is quite inaccurate. Debt Settlement is not a loan and it always gets you out of debt faster than paying minimum payments every month. A new law was passed recently that made it mandatory for your creditors to disclose this type of information. Take a look, it is a little box on your statement. It will outline how long it will take you to pay off the debt just making minimum payments each month.

In no cases does it cost more overall. How could it when you are cutting your balance by 45% AND eliminating the interest?

I would be happy to explain the pros and cons of Debt Settlement to anyone considering it as an option. I have been in the business for 10 years so I would be the best person to ask if you need to "pick someones brain". The fact is that it really benefits those that forsee being late with their payments in the near future, whatever the reason may be (lost your job, took a pay cut, or just simply got in over your head). But it is also not for everyone of course, like anything else.

ADVERTISING INFORMATION REMOVED PER TOS

[QUOTE=Anonymous;695219]Debt Settlement programs do not reduce your interest rate. I think Stephan is refering to credit cousiling where an agency negotiates with your creditors to bring down your rates. Debt Settlement involves zero interest and reduces your balances by 45%.
Most of this information Stephan has here is quite inaccurate. Debt Settlement is not a loan and it always gets you out of debt faster than paying minimum payments every month. A new law was passed recently that made it mandatory for your creditors to disclose this type of information. Take a look, it is a little box on your statement. It will outline how long it will take you to pay off the debt just making minimum payments each month.
In no cases does it cost more overall. How could it when you are cutting your balance by 45% AND eliminating the interest?
I would be happy to explain the pros and cons of Debt Settlement to anyone considering it as an option. I have been in the business for 10 years so I would be the best person to ask if you need to "pick someones brain". The fact is that it really benefits those that forsee being late with their payments in the near future, whatever the reason may be (lost your job, took a pay cut, or just simply got in over your head). But it is also not for everyone of course, like anything else.


Hey are you allowed to advertise your company???

I guess you have misread the OP's question. The OP has asked about the pros and cons of Debt Consolidation and not Debt Settlement. And you might just want to edit your previous post as giving out personal contact details is not allowed on this forum. We are here to provide solutions to people in need, and not to advertise our debt settlement program.

Thanks.

Thats right you are not supposed to give personal info on this forum.

Hey Bill Shannon, I just checked in on your business. It started from Jan 2007 & not 10 years. And its not even accredited with BBB. Your info is not quite correct regarding debt settlement & consolidation. And FYI I know Jon Bardram .

Hi bill i think we need to refrer to the original post .You are working with a debt settleemnt company and so you are under the impression that any kind of consolidation is your business . what we are looking to answer in this forum is how to help people in our forum get answers to their questions and not do business here and take advantage of other peoples situation . stephen was right in saying that consolidation helps you reduce your interest rates and debt consolidation and debt settlement are two different things
debt consolidation it is consolidating all your bills together and negotiating on your interest rates hence reducing your bills and the amount you pay each month
debt settlement is negotiating on your debts and trying and slashing down the balances by a significant reduction on the dollar .(and for people doing it on their own the bills are not even consolidated since the have to deal with every individual account separately only if they hire a company such as yours and list all the account with you'll they make a single payment to your ll each month .