Are your debts driving you crazy? Do you want to get out of those inescapable interest rates? Are the annoying collection calls driving you mad? Do you want to veer away from financial misery? Then acquiring service from debt consolidation programs might just work for you.
Debt consolidation programs or bill consolidation programs will help you make your monthly payments and help you achieve that debt free life. It can help you get lower monthly payments by reducing interest rates, cancel paying late fees, waive off charge fees, avoid harassing calls from your creditors, get rid of dues within 2-3 years saving you more time, create a positive impact on your credit score, consolidate your bills in one easy payment, and eventually lead your life to be debt free.
So how does it work? What are the steps taken by debt consolidation programs in consolidating your debts? First is by choosing a program that works for you. You will first attend a free counseling session with the company’s consultant. After analyzing your unique credit status, an income and expenditure analysis will be created. This will help you identify the amount you will have to pay on your monthly bills. An individualized debt management plan (DMP) will be made exclusively for you. If you agree upon the conditions and believe that the strategies given suits best your financial needs in handling your debts, then you will sign appropriate documents to start off the transaction.
The consolidation consultant must have an authority letter from you enabling him/her to communicate on your behalf to your creditors accordingly. You should not fail to ask a crystal clear review from your consultant the total fees and time frame which will be used in consolidating your debts. This will guide you in monitoring the transactions between your consultant and your creditors.
The income and expenditure analysis will then be sent to your creditors and the consultant will negotiate with them to reduce your interest rates and form other beneficial conditions. Your monthly payment will be distributed amongst your creditors or collection agencies. Debt consolidation programs were designed to devise your multiple bills into single monthly payment thus you will not stress over numerous debts anymore. After few days, you will receive creditors’ statements confirming your receipt.
You will get only one statement over a one time payment which can be very convenient for you. Usually, you will have updates on your credit status every six months and the consultant will go over your financial status again. He/She will then give you tips on how to handle your debts responsibly. He/She will emphasize the crucial effects of under-saving and overspending. The advices given should be taken seriously to avoid that terrorizing possibility of bankruptcy.
Debt consolidation programs are always available to aid you in handling your debts. You must choose the right consolidating program that you think might work for you. Others do say that living simply can be difficult to some and debts are accepted as part of life. However, you should be mature enough in your spending habits, repaying attitude, and saving manner to keep yourself away from financial misery.