Consolidation

Hi Melody,

Welcome to the forums. It is nice that you want to assist your parents in solving all the debt related problems and make them debt free. The first thing that you should do from your side is to pull the latest credit report from the three bureaus and know their latest financial standing.

Then you can contact the creditors appearing in their credit report and try to settle the account with proper negotiations. After all your payments are complete with your creditors though monthly easy installments, the accounts will be shown as 'paid' in their credit report and this will make them acquire their new financial worthiness.

When a person considers using the debt consolidation program, his consultant contacts his creditors and gets the interest rate and monthly payments reduced by a considerable margin so that the consumer is able to pay it realistically. The consultant often knows the key contacts at the place of the credit companies and works whole heartedly so that the consumer gets the best deal.

Let us take a hypothetical situation where a person is having a debt of $8000 with a major credit card company and the interest is offered at 22%. Considering the advantage of the debt consolidation program, the consultant will be able to lower the interest rate and the monthly payments significantly. A skilled consultant working in the program will be able to reduce the debt by a margin of 40% to 60% and eliminate all the financial charges and the late fees.

Thus, the consumer will not have to pay the insurmountable interest fees in the debt consolidation program and the payment will be going towards what is owed.

The bonus of the debt consolidation program is that you won't have to write numerous checks to your various creditors. You will have to write only one check and that will be in the name of the debt consolidation company with whom you are working. Thus, all the payments are consolidated into one loan amount and the trained consultant will further deal with your creditors in the rest of the program.

You will be sent statements of your monthly payments made to your creditors and thus you will be able to see your debt shrinking each month as it gets paid off.

The benefits of the debt consolidation program have been summarized in the following page which will give you more idea about this program:

http://www.debtconsolidationcare.com/benefits.html

Regards
Roxette