How a Debt Consolidator Can Reduce Your Debt

A Debt consolidation program starts with evaluating your financial situation. This process involves an in depth analysis of your financial standing. That analysis will help you to evaluate whether it is better to file for bankruptcy or go for a debt consolidation program. A debt consolidation analysis will estimate the debtor’s potential savings through the program.

When a deal is finalized with the debt consolidation company and the debtor. The next step is for one of the counselors to contact the creditors and work out a reduction in the interest rates and monthly payments at an amount that will be affordable to the debtor.

Through negotiations with the creditors, the debt consolidation company usually reduces or eliminates the interest charged. The balance owed towards the creditors is reduced and they can give the debtor a reduction in even the principal amount.

The Debt consolidation program will also help the debtors by inducing the creditors to stop the legal actions which they were taking against the debtor which means they can no more devour debtor’s income nor can they take the debtor to court. Also this starts bringing up the credit rating of the debtor because now the debtor is repaying the debts under the new agreement.

With this method of debt relief, the debtor will no longer have to answer embarrassing phone calls from his creditors. The debtor will not receive any bills or pay the creditors directly. The debt consolidation program will directly take control over the creditors. The debtor will just need to pay the debt consolidation company a single amount every month according to the budget which was agreed upon with the debtors. So there is no need for any interaction with the creditors.

Most of the time these systems are free to the debtor because the fees are paid by the creditors, since they would rather get something in return than lose all the money that the debtor owes them. Also, programs like this work for those with good or bad credit. It is a great solution for debt reduction to use a debt services company or consolidator that uses this method.

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Sources: Freetopics.net | Find100.com

Debt Consolidation Loans for Bad Credit

Nowadays, many people can get into a bad credit situation if they do not keep track of their income and expenditure. Many young executives suddenly find that they are being offered credit cards by various companies. Those who are sensible will find a credit card that suits their needs, sign up, keep track of their purchases, pay off their credit card bills in full each month, and ignore offers from other companies. There are others who may be dazzled by all the credit on offer and will end up with credit cards from several companies. They may easily end up making lots of purchases on credit while making the minimum payments on their cards. Then, one day they realize just how much debt they are in when they need a debt consolidation loan to get out of a bad credit situation.

At the Debt Consolidation and Debt Reduction Service, we do not give you debt consolidation loans. We help you reduce your debts by 40 percent to 60 percent and your payments by 40 percent. We see to it that you pay no interest, late fees, or penalties. We get you out of debt, and out of a bad credit situation, within three years. We ensure that you receive no more harassing phone calls from creditors by negotiating with them.

We can help you create a debt reduction plan. You begin by listing all your debts, estimating your income, and creating a workable monthly budget. You then have to find the money to pay off all your debts. We also offer credit counseling to our clients. We begin by advising our clients to stop using their credit cards—this automatically stops their debt situation from worsening. By helping you estimate your income and create a monthly budget, we ensure that you know how much you earn each month and how you spend what you earn.

You can consult us if you have debts that are over and above $5,000. You cannot hope to get out of a bad credit situation if you only pay the minimum amounts due every month—you cannot hope to get out of debt for a lifetime. If you decide to go in for debt consolidation—where the numerous payments you have to make each month are consolidated into one small sum—you can hope to get out of debt faster. If you are in a bad credit situation and need help with debt consolidation, fill out the form on our Web site. We will help you get out and stay out of debt for the rest of your life.

Sources: FreeTopics.com | Find100.com