Frequently Asked Questions
Here are the answers to the most commonly asked questions about debt consolidation. Also make sure to read your debtor rights on the next page.
What is debt consolidation?
Debt consolidation combines many, high-interest debts into one monthly payment with reduced interest rates. When you sign up for debt consolidation, our company passes on reduced interest rates to you that we have negotiated with most major creditors. These rates are considerably lower than those available to the general public. We determine your new monthly payment based on these lowered rates. You will then make one monthly payment to your debt consolidation service, which we will distribute among your creditors.
How do I apply for debt consolidation?
You can apply for free for debt consolidation by clicking "start now" wherever you see it on our site. We will supply you with a free quote on debt consolidation services just for filling out our short, online application. Once we have your information, we can help you decide which of our services is right for you.
Does debt consolidation hurt my credit?
Debt consolidation does not negatively impact your credit score. In fact, many of our customers are able to improve their credit scores because debt consolidation reduces your payment burden, thus helping you reduce your debt more quickly. Debt negotiation, on the other hand, does have an initially negative effect on your credit because you are required to stop paying your creditors for a time. Some debt consolidation services offer credit repair to help rectify the damage done by debt negotiation.
How much does debt consolidation cost?
Debt consolidation companies usually charge a one-time commission fee and a monthly administrative fee. The commission is usually the amount of your first monthly payment. For example, if your new monthly payment were $200, your first month's payment would be $400 to include commission. Most debt consolidation companies also charge an administrative fee, which is either a per-creditor fee or a flat fee that ranges from $10-$40 per month.
Do I qualify for debt consolidation?
If you have at least $5,000 in unsecured debt, you can qualify for debt consolidation. We deal only with unsecured debt because we have found that creditors are much less willing to negotiate to your advantage when they could seize your property instead. With unsecured debt, they don't have this option. If you have over $20,000 in unsecured debt, you would probably be a better candidate for debt negotiation.
