Solving debt related issues

Hello Scott and welcome! I received free counseling here and then as a result of that free counseling, I opted to join a debt consolidation program. The program I joined is NOT a loan, but rather a representative of the debt consolidation company has negotiated with my creditors to reach an amount that I could afford to pay each month. The rep. negotiated that all over the limit fees and late fees be stopped and the interest rates lowered. I send my payment to the consolidation company on the first of every month and they distribute the money according to the agreements they have reached. I am paying less than I would have paid myself (though not a huge amount less) and here is the big one - I will be debt free in less than three years! Another plus, is I don't have to worry about payments to particular creditors, like forgetting one or being a day late and stuck with another $35 late fee or what have you.

Hi Scott,

Welcome to the forums.

Thanks ttthayden for giving a personal experience of the consolidation program.

Scott, we do not offer any loans to the consumers because we believe that it will risk your financial status and also the collateral that will be pledged against the loan. You might be offered a low interest rate in the consolidation loan but you are pledging your property against it. If you miss any of your payments, you might be at the risk of losing your property.

Also, you will have to pay the interest twice on the consolidation loan, i.e.. the rate of interest on the consolidation loan and the rate of interest to pay the debt for which the loan is taken.

I will suggest you to consider a consolidation program if you are looking to pay your past debt. Doing this, all your loans will be combined into one loan amount and you will be offered a lower rate of interest.

As ttthayden mentioned, the consultant will negotiate with your creditors to reduce all the financial charges and the late fees so that you are able to pay the reduced amount. Once you have completed all your payments, your credit report will appear clean in front of your lenders. Also, your credit scores will increase and you will be able to maintain your financial worthiness.

You can take a free counseling in this website to know more about your repayment options.

Regards
Roxette