How does the consolidation program function?

Hi Jerry

Welcome to the forums.

Initially, you will be offered a free consultation where it will be analyzed if the program will solve your debt related problems.

After this analysis is done, the consultant contacts each of your creditors and makes a payment arrangement with them. He negotiates for a reduced monthly payment that will eliminate all financial charges, late fees. Once the agreement is made, all collection calls coming to you will stop and the consultant will be in direct interaction with your lenders.

The bonus of the debt consolidation program is that you won't have to write numerous checks to your various creditors. The payments to them are made through the debt consolidation company. Each month, an agreed amount is deposited into a trust account that can be either with the consolidation company or with you. From there, money is taken out and is distributed to each of your creditors until all the accounts get cleared.

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.

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