Debt Consolidation

Debt consolidation is one of the most popular debt management programs available. Can a debt consolidation program benefit you?

Debt Consolidation

If you're in debt, you might have bad credit. Or you might have good credit, but you're overextended. In either of these cases, it might be difficult to get a loan to pay off your credit cards. But maybe you don't want a loan. That's fine too because help is still available in the form of debt consolidation. Read on to find out how debt consolidation helped Mary, and how it could help you too.

Debt Consolidation for Mary

Mary was a girl in need of debt consolidation, so she tried to get a loan to pay off her credit cards. She went to her bank and talked to a loan officer. "It shouldn't be a problem since I have good credit. I owe a lot, but I've never missed a payment, and all of my payments have been made on time," she announced to the loan officer proudly. The loan officer took her application, and in a few days she called Mary back. "You do have excellent credit, Mary. Unfortunately, you have too much credit and we cannot approve your loan." The loan officer went on to explain that perhaps Mary should enroll in a debt consolidation program."There are several good debt consolidation companies available on the Internet. Make sure you find one that incorporates debt counseling in their plan."

Mary had never heard of debt consolidation, so she did as the loan offices suggested and ran an Internet search on the term debt consolidation. She got pages and pages of results. She narrowed her choices down to just five or six, and completed the online questionnaires for each company. Within 24 hours, she had recommendations from each one. She compared the costs as well as the services offered, then called one. She learned that debt consolidation is not a loan, and that what in fact happens is that the debt counselor contacts her creditors to try to get her lower interest rates and lower payments. Although Mary never had any late fees, she did have an over-the-limit fee from time to time. The debt counselor said he could possibly convince her creditors to remove those fees in addition to lowering her interest rates and monthly payments. Once the debt counselor spoke to all of her creditors, he talked to Mary and gave her a figure that she would pay each month to the debt consolidation company. That figure included money that was to be distributed to her creditors by the debt consolidation company as well as the company's fee. Mary was amazed at how low the figure was in comparison to what she had been paying before. She wondered how she would become debt free in five years. The debt counselor explained that because her creditors did remove the over-the-limit fees and lowered the interest rates significantly, more of her money would go towards paying what she originally owed, and less would go to interest and finance charges. Mary understood. She also took advantage of the credit counseling that was available through the debt consolidation company, and she was able to start a savings account. In five years, she was debt free and on the way to having a down payment for a house (but she still had a lot of saving to do for that).

Mary did it and so can you. Get debt consolidation to get rid of your debt today. Taking the first step today will put you right onto the fast track to a debt free life.

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