Skip to main content
index page

If you're getting behind on your bills in Michigan, you may want to consolidate them into a single monthly payment that's easy to pay. You can consolidate bills on your own or get professional help from a Michigan debt consolidation company.

Michigan debt consolidation - 5 things you should know

Michigan consolidation options can help you combine all your bills into one easy monthly payment. Therefore, you need to make a single monthly payment to the consolidation company, which will then divide and distribute the payment amongst your creditors and collection agencies. Whether you're in Detroit or any area in Michigan, the consolidation options are the same. Here are the 5 things that you should know about Michigan debt consolidation.

 Michigan consolidation options:

You can consolidate bills by choosing a consolidation program or applying for a consolidation loan. When you're in a consolidation program, a consultant will negotiate with your creditors and help you obtain an affordable payment plan. Take a look at the various consolidation options in the article on "How do I consolidate my bills?".

 Criteria for Michigan consolidation:

Each company or lender has different criteria to determine suitability for a consolidation program or loan. You need to have certain amount of debt in order to get enrolled in a program. There's a criterion regarding your credit history with a program. But you need to have good credit record if you'd like to get a consolidation loan.

 Consolidation can help lower interest rates:

The consultant at the Michigan debt consolidation company reviews your financial situation and works with your creditors in order to have your interest rates reduced. This helps you save money.

 Creditors can eliminate late fees and penalty costs:

If you've made late payments or exceeded your credit limit, your creditors/CA will charge late fees and over-limit charges. Michigan consolidation companies can negotiate with your creditors/CA and help you get rid of late fees, over-limit charges, and other penalty costs.

 Creditor/collection calls will stop:

When you're able to repay your bills with the help of Michigan debt consolidation options, creditors or collection agencies will stop harassing you with repeated phone calls or letters.
State of Michigan (MI)
map of Michigan state in USA

 Avg credit card debt: $4,863
Delinquency rate on (credit card): 1.39%

 Mortgage debt: $128,928
Delinquency rate on (Mortgage): 1.54%

 Auto loan debt: $13,673
Delinquency rate on (Auto loan): 1.27%

 Unsecured personal loan debt: $10,633
Delinquency rate on
(Unsecured personal loan): 2.14%

Payday loan laws >>


Michigan debt consolidation - 5 Mistakes you should avoid

Given below are 5 mistakes which you should avoid while consolidating your bills:

  • 1 Don't cancel credit cards: Avoid canceling cards you have an outstanding balance on because it is harder to negotiate better interest rates with creditors if you show that you don't want to be their customer anymore. Moreover, when you keep your accounts open, it creates a positive impact on your credit report.
  • 2 Read the fine print: It is better to read the fine print and be sure about the terms of agreement before you choose a Michigan debt consolidation program or loan.
  • 3 Do not make large purchases: Avoid making a large purchase with your credit cards after you've included them in a consolidation program. This will keep you from adding to your balances while you're paying down your bills.
  • 4 Avoid consolidation scams: There are consolidation companies that attempt to scam consumers by taking money from debtors without providing any services in exchange. So, it is better to check out the reputation of the company before you choose a Michigan debt consolidation program. Moreover, you should check out what fees you'll need to pay.

Michigan debt settlement is an alternative to consolidation

When you can't afford to make your repayments, and you don't want to consolidate, you can settle them with a one-time payment and pay down the obligation. You can settle your bills with the creditors on your own by checking out the steps to settle bills yourself.

If you find it difficult to work out a settlement with creditors, take advantage of Michigan debt settlement services that make it easier for you. Under a settlement program, negotiators communicate with creditors so that the creditors agree to reduce the total amount you owe. However, the Michigan debt settlement company will need you to pay upfront fees and a monthly representation fee.


Case study

Scenario I received a court letter claiming payments for a debt that I'm confident of has expired SOL. I have the last credit card payment receipt, and it says September 2010. I'm thinking of drafting a letter and send it to my creditor to inform him that my debt is no longer within the SOL period and I can prove my case in the court if needed be. Still, I'd request him to send me any proof that I still owe him the money. Can anyone help me how to word this letter and the exact statute I should use here in Bay City, MI?
Solution Statute Of Limitations for consumer debts like open-ended accounts (in this case your credit cards) in Michigan is 6 years. If you suspect that the SOL on your debt has expired, then you shouldn't accept the debt, whatsoever. However, never ignore a court letter. Rather, you must contact a consumer credit lawyer at once to find out legal ways to deal with the crisis. Meanwhile, don't speak to the creditor or the debt collector, and if there's any violation of the FDCPA, you can sue them. You can follow this URL: to draft your letter (which is better known as debt verification letter) and in your case, should be done only after you've consulted a legal expert.

How much
you can save
in Michigan


FAQ on consolidation in Detroit, Michigan

I've piled up credit card and medical bills in Detroit, Michigan. I'd like to know the SOL. Can I make payments if the SOL has expired?
Ans: The SOL for credit card and medical bills in Michigan is 6 years. If your accounts have exceeded the SOL, your creditors cannot sue you. If you reach a new agreement with the creditor and breach it, then the SOL will restart. But if the SOL hasn't expired, then you should try to pay off your bills. You can obtain low interest rates and consolidate your bills with the help of a debt consolidation Detroit company.
Can I consolidate private student loans? I'm in Michigan.
Ans: You can consolidate private student loans by taking out a Michigan debt consolidation loan and repay your student loans with one large payment. This leaves you with a single loan that needs you to make small monthly repayments.
I have taken out several loans from various lenders, one of which has been withdrawing $60 from my account every 2 weeks for the past 4-5 months since I have been unable to pay off the original balance of $200. I'm curious to know how pdls work in Detroit, Michigan, as they've already taken out 3 times my original principal. How do I get rid of the pdls?
Ans: Payday loans are legal in Michigan. Therefore, you'll have to pay off the principal as well as the interest. If you've taken out payday loans, you can consolidate them with the help of a debt consolidation Detroit company. Know more...