You ve probably seen commercials for consumer credit counseling services that can help with your debt. One of the services that these consumer credit counseling companies offer is to help you obtain a debt consolidation loan that will help you get out of debt and become more financially solvent.
Basically, a debt consolidation loan that a consumer credit counseling service can obtain for you is a simple procedure. It involves the securing of a loan that will cover the amount of money that you owe to your creditors. That money is used to pay your creditors off completely and then you make one payment to the loan company instead of many payments to your individual creditors.
The consumer credit counseling service has access to many debt consolidation lenders that individuals don t have on their own. They can help you find a debt consolidation loan that will work best for you allowing payments that are affordable for you and your situation.
Consumer credit counseling services can also negotiate with your creditors by letting them know you are getting a debt consolidation loan for your bills. That means the creditors are going to get paid, which they like. The counseling service can then negotiate with the creditors and perhaps get you a lower payoff amount than what you actually owe.
There are many advantages to a debt consolidation loan. First, you are just making one payment rather than many. If you re like me, sometimes it s difficult to keep track of who you owe and who you don t especially if you owe several different companies money. When you have a debt consolidation loan, there s just one payment to make and it can often be directly taken out of your checking or savings account.
Having a debt consolidation loan also helps your credit report look a little better. Once your creditors are paid off, it shows on your credit report as paid in full. That means that you will have a zero balance with them and the account is showing as being in good standing. Of course, the debt consolidation loan will also show on your credit report, so it s important for you to make that payment on time and not miss any or else you will undo all the good you did in the first place.
Of course, you can always pursue a debt consolidation loan on your own rather than going through a consumer credit counseling service, but the advantages of having this service far outweigh the disadvantages. With their contacts and their negotiating skills, you might be better off finding a company you can trust and get on the road toward being debt free!
