Consumer Credit Counseling – Consumer Credit Counseling service – Online Debt Consolidation
Debt consolidation is the process of combining many debts into a single payment, usually resulting in lower monthly payments. There is also then only one creditor to pay. By some, it is known as a Consolidation Loan however a loan is not the same thing, please see site for more info if interested. There are many debt consolidation firms, though some are not as reputable as others. Choosing the right firm is very importance, as some firms may use dishonest tactics in their consolidation loans.
After selecting a debt consolidation firm, the firm will get the required debt and finance information from you. The firm then calls your creditors and negotiates on your behalf. These lower rates are pre-set by creditors. Usually, the firm can negotiate lower monthly payments, lower interest rates, and reduce or eliminate late fees. This allows you to pay one, lower bill and pay off your debts in lesser time. In return for this service, you must agree to pay, on time, the agreed upon lower payment while meeting other living expenses. You must also agree to stop increasing your debt or using credit cards. When creditors know that you are working with debt consolidation, they quit harassing you. If they do call, a good firm will usually call them for you and explain the situation.
Often debt consolidation involves many unsecured loans (such as credit card bills) into a single payment but with collateral backing it up. This is then referred to a secured loan. This is not always necessary so do contact a company to look over your individual case. By doing so, a lower interest rate is often available since there is something of value backing it up. If in the case of you not being able to pay back what you owe, then the collateral can be seized in order to pay the amount you owe. All of this can be confusing so it is best to contact a quality company and explain your situation. They will talk to you free of charge with no obligation and provide options as to what they can do for you. From there you can determine what is best suited for you
Loan Consolidation allows you to simplify the repayment process by combining several types of federal education loans into one loan, so you make just one payment a month. Also, that monthly payment might be lower than what you’re currently paying.
You can get a Direct Consolidation Loan, or a Federal (FFEL) Consolidation Loan, available from participating FFEL lenders. Under either program, the loan holder pays off the existing loans and makes one consolidation loan to replace them. If you have subsidized and unsubsidized loans, they’ll be grouped accordingly when you consolidate so you won’t lose your interest subsidy on the subsidized loans.
There are three categories of Direct Consolidation Loans: Direct Subsidized Consolidation Loans, Direct Unsubsidized Consolidation Loans, and Direct PLUS Consolidation Loans. If you have loans from more than one category, you still have only one Direct Consolidation Loan and make only one monthly payment.
You can also consolidate Federal Perkins Loans and other federal education loans. Debt consolidation firms can help guide you as to what the best type of consolidation is for you. If you have loans from private lenders, a debt consolidation firm may be able to negotiate lower interest rates so your monthly payment is less.