Loan Consolidation Information

Personal debt can become overwhelming. Credit cards, judgments, late fees and other unsecured debts can be solved through debt and bills consolidation and debt management services. Don't be afraid to ask for help.
 
Debt consolidation - What is it?
Debt and bills consolidation is a process of restructuring your existing debt with your creditors. Debt consolidation is not a loan, but a way to lower your monthly payments and lower (sometimes even eliminating) the interest you are currently paying.

Who do you contact?
There are many non-profit debt consolidation companies committed to assisting consumers who have had the unfortunate experience of becoming over extended with consumer debt. In addition to their debt consolidation program, most debt consolidation companies provide you educational information. Their credit counseling services are set up to help you take charge of your credit.

What about filing for bankruptcy?
Filing for bankruptcy can destroy your credit. Most financial institutions will not even consider a credit application involving a bankruptcy for at least 3-5 years.

Why should you use a debt consolidation program?
With a debt consolidation plan you will set yourself in motion to get out of debt. A lower monthly payment will make it more convenient for you to pay off your debt, therefore relieving your daily financial and emotional stress.

What kind of debt qualifies for debt consolidation?
Most unsecured debt can be included in a debt consolidation program. For example, credit cards, medical bills, student loans, taxes and bank lines are debts commonly consolidated. Secured loans such as a mortgage or a car loan usually cannot be consolidated successfully.

What are my rights concerning creditors?
The Fair Debt Collection Practices Act (FDCPA) describes your rights and will help you when dealing with your creditors.The Federal Citizen Information Center provides an easy to understand page that summarizes Fair Debt Collection.

Do you have to pay anything up front?
There are no up front fees to examine your debts. Reputable debt consolidation companies analyze your debt completely and explain the consolidation process prior to your acceptance of their services. If a company requests prior payment of any kind you must question why this is necessary. Any company looking to charge an up front fee must raise some questions in your mind.

What creditors participate in debt consolidation programs?
All major credit card companies, department store cards, hospitals and medical clinics, student loan bureaus and federal revenue departments participate in debt consolidation programs.

Student Loan Consolidation
Should you consider school loan consolidation? If you have several outstanding college student loans and you are wanting to possibly lower your monthly payments, then you should consider student school loan consolidation.

Student loan consolidation is a way to put your school loans into one new loan which reduces the number of monthly bills and may possibly lower your monthly payments.  If you have federal student loans, school loan consolidation gives you the chance to lock in a low fixed rate loan.

There are several types of school consolidation loans available to students. The simplest categorization is into federal loans consolidation and private student loans consolidation. The student loans consolidation program that will work for you might involve a student loan consolidation rebate, specific studies like medical school loan consolidation, and be sure to look for non-profit student loan consolidation programs. Please check out the options available to consolidate student loans.