Debt Consolidation Services
Our company offers two different services to accommodate the needs of our customers. Learn if debt consolidation or debt negotiation is the better option for you.
Candidates for Debt Consolidation
Debt consolidation is ideal for people who have several, high-interest debts that are unsecured. Unsecured debt is any debt that is not tied to a piece of your property. Credit cards are an example of unsecured debt, whereas a car or mortgage loan is an example of secured debt. If you have many creditors and debts with high interest rates, you would probably make a good candidate for debt consolidation. Debt consolidation can help you by reducing your monthly payments, lowering your interest rates, and consolidating your many debts into one. You should consider debt consolidation if:
- You have at least $5,000 in unsecured debt
- You have many creditors
- You have high-interest debts
- You agree to cancel the credit cards included in consolidation
- You are current on your payments
- You want to lower your monthly payment burden
Candidates for Debt Negotiation
Debt negotiation, also called debt settlement, is an intensive form of debt consolidation. Debt negotiation is for people with more serious debt problems. Debt negotiation asks that you stop paying your creditors for a time period while your debt consolidation service negotiates to lower your debt payoff. While we negotiate with your creditors, you will make payments to a holding account. When negotiations conclude, you will use the balance of your holding account to pay your debts off. Usually, our debt negotiation customers end up only paying about 50% of the amount they owe to their creditors. Once this payment is made, your accounts will be marked paid in full. Keep in mind that debt negotiation will have a negative impact on your credit initially because you must stop paying your creditors for a while. You should contemplate debt negotiation if:
- You have over $20,000 in unsecured debt
- You are at least three months behind on payments
- You have dropped out of a debt consolidation program
- You are in danger of bankruptcy
- You understand that debt negotiation has an initially negative impact on your credit
- You want to reduce the total amount of your debt
If you have further questions, please read our FAQ page.
