why consolidation

How is your remark either:

a) Constructive

b) Informative


Debt consolidation is a risky solution because you are basically putting your trust in a third-party to negotiate with your creditors and issue payments to them in such a way as to satisfy the debt more inexpensively and over a longer duration than you might be able to do on your own.

What people have a hard time understanding, either because of preconceived notions or a simple lack of knowledge, is that most of what a debt consolidator does for a consumer can be done just as easily (and free) on their own.

Collectors come off as unwavering, scary reps over the phone that aren't willing to negotiate terms and settle past due debts. When you are $30 short on your rent payment for the month, your car is in the shop and you've got other finicial worries - calling that collector back to set up a payment plan seems like a daunting, hopeless task. People get a feeling, either from their own imaginations or using the generalizations they gather from various sources, that the collectors won't work with them at all.

The difference between a debtor and a collector, aside from one owing the other, is knowledge. Read up on the FDCPA. Learn tricks of the trade from consumer watchdog groups, blogs and more. Also, and more importantly, learn to "know your audience". Speak to the collectors in a language that they will understand and that gets their attention and directs results in your favor.

If anyone needs to be shut down just as badly as payday lenders do, it's bill consolidators.