My queries on Debt Consolidation..

Hi szerwa

Welcome to the board!

It's good that you have nicely differentiated the consolidation program from the settlement. Settlement stays in your credit report for 7 years in negative terms. Also, if you are current in your payments, then you will have to actually default in them to qualify for the program. The process will begin at that time when the consultant will negotiate with your creditors.

I would like you to go through this article and vote for the consolidation program:

http://forums.debtcc.com/forums/comparison.html

debt consolidation will reduce your total amount of debt. Your debt will eliminate most of the financial charges and the late fees that might have made it a huge amount. Once the consultant negotiates for a reduced amount, the creditors will offer you the amount that will be framed in easy monthly installments. So, you can choose the one that suits to your present situation and get it started.

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

debt consolidation program does not affect your credit ratings negatively. It will appear in your credit file and show that you are in the program. Once you have completed it, this program will be removed from your file. The lenders might have a feeling that you were having some financial problems in paying the actual amount and thus have taken the consolidation (reduced) amount, but the consultant will ensure that your credit report is updated in good ratings.

Any lender identifies you nicely if your report shows your accounts as 'paid in full' or 'paid as agreed'. This is the main intention of the consultant working in your program.

With a debt of $25000, it is possible to become debt free if you follow a fixed budget each month. You will have to contribute actively towards the monthly payments and reduce the cost of the living. If allowed in later times, you can contribute more towards the payments and shorten the timeframe of the program.

As this registration was done completely free of cost, you will be offered a free discussion. The consultant might be charging you a very nominal fee that will be told to you before the program begins. After you give your final consent, this program will get started. You are always free to choose the best option in making your repayment process easier.

Hope I have been able to answer all your queries that have been put here. If you need more help, please feel free

Regards
Roxette

Hey Roxette,
Thanks for the reply. So it seems that Consolidation is the way to go. I guess the next step is to talk to the consulant about the nitty-gritty details of the program. Even getting rid of all that debt in 3-5 years seems too good to be true. Thanks for your help.

Alex

Hi Alex,

Consolidation is always a better choice when you are looking for some professional help. Your credit will keep improving as long as you are making regular payments towards your debt account.

Once you have completed all your payments, your credit scores will increase and you will be open for the best bargain in the interest rates.

Here are some details of our consolidation - like you the settlement process was too "iffy" for us. We had 15K in debt, mostly credit card and some medical bills. The consultant negotiated the interest rates from 24.9% - 29.9% to 5% - 15%. All over the limit fees were suspended. We will be debt free in less than three years.

In addition to what ttthayden has said, I was also offered a similar deal and the service charge of 15% of the total debt was included in my monthly payments. This charge is much less than the amount I saved in the interest and other financial charges.

So, I am relieved from a huge pressure that seemed to come in my way.