TopConsumerReviews.com is a world-leading consumer product review site. We provide detailed reviews and ratings for thousands of products and services.
The term debt consolidation is often thought of as referring to a debt consolidation loan, but that's not actually the case. Debt consolidation refers to the act of consolidating bills into one monthly payment without actually being granted a loan. If you have ever heard of a debt consolidation company, then you may already know how the process works. If not, this article will explain the process and why it may be beneficial for anyone who is in need of valid debt relief.
Have you ever been late with a credit card bill? If so, how many times has the issuing bank called you before your second payment was even due? If you miss one single payment, the telephone begins to ring and you instantly recognize the importance of debt relief. If you miss two consecutive payments, you can forget about having any peace within your household. The collections department that serves most creditors is ruthless and the people on the phones are considerably less than pleasant. After a period of three months in a debt consolidation program, the majority of collection calls will stop.
A debt consolidation company attempts to work with your creditors in order to get you a lower monthly payment. If you are already behind with your payments, it may be time to consider the real possibility that you are in need of debt relief. A more affordable monthly payment is all that many debtors need to help get them back on track with finances.
One of the greatest drawbacks to credit card debt is the high interest rates that often accompany an account. Some lenders may offer a zero or low introductory APR (Annual Percentage Rate), but the keyword in that sentence is "introductory". Once that period expires, the APR will increase to the preset amount as described in a cardholder's agreement. When interest rates get out of hand, less of your payment is actually being applied to the principal balance. Essentially, you may be paying for nothing more than interest or, in the worst case scenario, you may be going deeper into debt every month. A debt consolidation company attempts to get interest rates lowered or, in some cases, even eliminated throughout the course of their customized debt relief repayment program.
Although a debt consolidation company does not provide a loan, they do collect one lump sum payment from you each month that will then be distributed to your creditors according to the agreed upon budget. If you have 5, 10 or even 15 bills due each month, it can be a daunting task to keep up with due dates. By having one lump sum payment due on the same day each month, you will be effectively controlling your own payment schedule and will lessen the likelihood of forgetting to submit payment.
The last, but certainly not least, important reason to consider a debt consolidation program is because it can help you to get out of debt much faster than if you were to continue paying the minimum monthly payments, high interest rates and miscellaneous penalty fees. In most cases, creditors will stop charging late and overlimit fees after 1-3 months of consecutive payments through a debt consolidation program. Generally, it can take as many as 15 years to pay off one single credit card under normal circumstances. With the help of a debt consolidation program, you may be debt free sooner than you ever thought possible.
Top Consumer Reviews Articles
TopConsumerReviews.com provides unique articles that you won't find anywhere else on the internet. These articles are designed to help you make the most informed decisions possible.
Debt Relief In The News
Holidays are fast approaching and it is synonymous to huge expenses that is why National Debt Relief shares some handy tips to manage holiday spending better. The article titled "How To Get Out Of Spe...
Published: Sun, 18 Nov 2018 07:11:00 GMT
(CNN) - Secretary of Education Betsy DeVos was hit with another lawsuit Tuesday claiming she failed to cancel student debt owed by people whose for-profit colleges have been shut down. The new lawsuit ...
Published: Tue, 13 Nov 2018 14:49:00 GMT
Attorney General Mark Herring has secured more than $50 million in debt relief and ordered civil penalties as a result of his lawsuit against Future Income Payments and its owner, Scott Kohn for ...
Published: Thu, 15 Nov 2018 11:12:00 GMT
Attorney General Mark Herring announced Thursday that he won $50 million in debt relief and ordered civil penalties in a lawsuit against Future Income Payments, LLC; FIP, LLC; and their owner ...
Published: Thu, 15 Nov 2018 13:51:00 GMT
WASHINGTON - Besty DeVos was supposed to cancel student debt owed by people whose for-profit colleges have shut down. But according to new reports from CNN and The Hill, DeVos has yet to do that, and ...
Published: Wed, 14 Nov 2018 05:17:00 GMT
(PRLEAP.COM) A lot of people are having a hard time managing their finances because they have no savings that is why Debt Consolidation USA shares some ideas on how people can start saving money. The ...
Published: Thu, 15 Nov 2018 00:02:00 GMT
Casino junket operators are asking Macau's government for tax relief and more help in chasing down VIP gambling debtors. Tuesday's edition of the Macau Gaming Summit 2018 saw junket operators ...
Published: Thu, 15 Nov 2018 00:06:00 GMT
Because of people like you, another world is possible. There are many battles to be won, but we will battle them together-all of us. Common Dreams is not your normal news site. We don't survive on cli...
Published: Wed, 14 Nov 2018 12:53:00 GMT
A lot of people have been diligently putting money aside in their 401(k) for retirement and National Debt Relief explains why it is a bad idea to use that fund to pay for debt obligations. The article ...
Published: Fri, 16 Nov 2018 07:12:00 GMT
- View Full Site -
Reproduction in whole or in part in any form without the express written consent of TopConsumerReviews.com, LLC is strictly prohibited.