debt consolidtion for my mom

Doyle, there are many things that you should consider before taking a consolidation program. Firstly, check your credit report and know the latest standing of these accounts. If these debts have occurred long time ago, chances are that they may have expired on the SOL. If the statutes for legally collecting on these debts have expired, your mother can escape paying them in legal terms. Any payment made towards these accounts will restart the SOL period and the accounts will be brought back in the credit file.

Secondly, if some of these accounts are over 7 years, they should not appear in your credit file also. Other than this, it is important that your mother should be able to make the regular payments in the consolidation program. The monthly payments will be kept lower according to her financial situation, but she should be regular with her payments. Otherwise, creditors might take some actions if there is any default.

Take a free counseling and discuss the complete situation with the consultant. He will analyze her sources of income first and then plan her repayments. Thereafter, he will negotiate with the creditors for reducing the total amount. The total amount of the debt can be reduced by eliminating the financial charges and other late payment fees. Thus, consolidation program can be a great help in reducing the total amount.