Frequently Asked Questions
• What is Debt Consolidation?
• How does the program work?
• How much money can I save with Debt Consolidation?
• How much does this service cost?
• Will I still receive harassing phone calls?
What is Debt Consolidation?
Debt consolidation combines all of your unsecured monthly bills—credit cards, rent, telephone and utility bills, federal and state income taxes, property taxes, fuel bills, tuition, alimony and child support—into one lower monthly payment at a lowered interest rate.
How does the program work?
Although our service is not a loan, we are able to assist our clients in this endeavor and more importantly, dramatically reduce the pay-off time by referring you to approved not-for-profit credit counseling agencies. A certified credit advisor will contact your creditors to get your interest rate and monthly payments reduced to an amount you can afford to pay. In addition, you no longer pay your creditors directly. All of your debts are consolidated into one manageable, reduced payment made directly to the credit counseling agency. They, in turn, pay your creditors on your behalf every month.
How much can I save with debt consolidation?
Most credit counseling agencies can help to dramatically lower your overall monthly payments as well as your interest charges. For example, with a $4,000 balance on Citibank, MBNA, Chase, and Associates cards—$16,000 in debt—and an average interest rate of 22%, debt consolidation program could produce these results:
Current Payment: $650/month
Current Interest Rate: 22%
New Debt Consolidation Payment: $340/month!
New Interest Rate:
Monthly Savings = $310 per month and
11% in interest charges!
How much does this service cost?
Most debt consolidation services are subsidized by creditors with little or no cost to you. Through debt consolidation services they can, at the very least, recoup the principal on your debt.
In most cases if a credit counseling agency functions as a "non-profit" company, this allows the creditors to recoup a significant portion of the "lost interest charges" through tax write-offs.
So take advantage of this great service. Contact us for a completely free consultation and a certified credit advisor will show you how you can begin saving on your interest charges right away.
Will I still receive harassing phone calls?
Once you enroll in a debt management program and a counseling agency begins to handle your account, the annoying phone calls you’ve been receiving may drastically be reduced.
Content provided by InterMark Media, Inc.
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