You've probably seen commercials for consumer credit counseling services debt consolidation companies that claim they can
help you 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 which-in-turn 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
Consumer credit counseling services debt consolidation 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.
Advantages to a Debt Consolidation Loan
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 services debt consolidation, 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!