There is nothing quite like that sinking feeling as your debts pile up, with no clear solution apparent. Notices from creditors, a rapidly diminishing credit score…what can you do? One option is Debt Consolidation, and it really does work.

Debt Consolidation can do a number of things, from negotiating with your creditors to reducing your interest by up to 50%, and or combining all of your payments into one monthly payment. Either way, you should be paying less interest, and quickly reduce the principal.

Having numerous accounts with revolving credit can add up to killer amounts of interest. Why pay all that interest when there is a better way?

How Does Debt Consolidation Work?

Debt consolidation is fairly simple. You work with a 3rd party debt consolidation company, who negotiates with your creditors on your behalf to reach a settlement, for lower interest rates and payments. Essentially, the debt management company says to the creditors, “Look, this person is about to declare bankruptcy, and then you won’t get anything from them. Will you include them in the program for preferential rates?”. This process will happen with each of your creditors.

Obviously, it is in a creditor’s best interest to take something over nothing, and so most usually accept. Sure, your accounts will usually be closed, but your credit score will most likely go up shortly thereafter, due to the accounts coming current and consistent monthly payments.

If you think debt consolidation might be the right path for you, we can provide you with more information to help you make an informed decision. We have a simple online form for you to fill-out that will help us help you decide if consolidating your debts is in your best interest. Learn more about Debt Consolidation here.