Ride the Storm: Navigating Through Unstable Periods / Katerina Rudko (Belka G...
Why use the services of a debt management
1. Why Use The Services Of A
Debt Management Company To
Consolidate Debt?
2. When you have too much debt, it can become
overwhelming and you may start to wonder if a debt
management service could help you. If you are
having a difficult time keeping up with minimum
payments and your interest rates are climbing,
consolidating your debt using the services of a debt
management company may be the right debt relief
solution for you.
3. Debt consolidation has become a very popular option for those
who want to avoid filing for bankruptcy. A debt consolidation
program offered by an accredited debt management company is
an effective way to relieve the burden of overwhelming debt and
improve your money management skills. Once you consolidate
your debt with a debt management company, you will get the
proper education and guidance on how to better manage your
finances so that you can avoid falling into debt in the future.
4. How a debt management
program operates
When you enter into a debt consolidation program
through a debt management agency, you will be
working with a debt management counsellor to
consolidate your debt into one low-interest monthly
payment. By doing so, you can save thousands of
dollars and you will pay off your unsecured debts
sooner. In addition, one major benefit of consolidating
your debts is you can often improve your credit score
since you will be consistently making your monthly
payments on time and in the agreed upon amount
which will help you reduce your debt much quicker.
5. Once your budget is prepared and you know how much can
afford to pay each month, the debt management counsellor will
negotiate with your creditors for a lower amount for you to pay.
Once all of the creditors agree, your debts will be consolidated
into one loan with one lower interest rate. You will then be able
to start sending your monthly loan payment to your debt
counsellor who will then distribute the payments to the creditors.
6. Why individuals consolidate
their unsecured debt
There are a number of reasons people enrol in a debt
consolidation program. They can no longer make their monthly
payments on all of their unsecured debts because their
living/household expenses have increased. They have a
number of credit cards that have a high debt load and the
interest rates have gone up so they have been unable to make
the payments. They have been using a line of credit for paying
their debts. They have been unable to refinance their mortgage
to consolidate debts. They have got themselves deep in debt
using payday loans. As well, they lost or reduced income.
7. How a debt consolidation
program can help you
The main advantage of enrolling in a debt consolidation
program offered by a debt management company is the
reduced interest you will pay. Because all of the unsecured
debts are consolidated into one loan, you will pay one lower
interest rate. Reduced interest rates helps you get out of debt
faster. Most participants in a debt consolidation program get rid
of their unsecured debts in 36 to 60 months. Consolidating your
debt into a single low-interest monthly payment can potentially
save you thousands of dollars. One payment will speed up the
debt relief process, and get you back on financially stable
ground. As proof that your payments were made, you continue
to receive monthly account statements from those creditors.
8. Another advantage of using a debt management service is they
find the best possible solution for you. They will review your
financial information and then work with your creditors to
arrange reduced monthly payments and interest charges for
your unsecured debt allowing you to lower your unsecured debt
payments. As well, participating in a debt consolidation program
means you will not have to file for bankruptcy. Knowing that you
are working with professionals who are helping you resolve your
financial predicament will help you to worry less about your
debts and feel more positive about your financial future.
