Consolidating credit debt

These programs are offered by nonprofit credit counseling agencies, who work with credit card companies to arrive at a lower, more affordable monthly payment for you.

Nonprofit debt consolidation is the truest form of a debt consolidation program.

If you are having problems paying credit cards, your credit score may suffer and there is legitimate concern you will repay the loan.

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Consolidating credit debt

“Credit Counseling will develop an action plan that is tailored to your exact needs,” Rebecca Steele, Chief Executive Officer for the , said.

“When you’re in debt, you need to understand your budget, what it’s going to take to resolve your debts and how you can put fair, affordable payments in place to achieve that goal.

Debt consolidation programs make it easier to eliminate high-interest credit card debt by reducing the interest rate and lowering monthly payments to an affordable level.

The primary goal of debt consolidation programs is to help you eliminate debt and save a little money in the process.

When the balance has reached a sufficient level, NDR negotiates with your individual creditors in an attempt to get them to accept less than what is owed. Expect your credit score to drop 75-125 points as your bills go unpaid and accounts become delinquent.

If a settlement is reached, the debt is paid from the escrow account. In Charge (nonprofit debt consolidation), Avant (debt consolidation loan) and National Debt Relief (debt settlement) each represent different segments of the debt consolidation industry.The first two are aimed at consumers who have enough income to handle their debt, but need help organizing a budget and sticking to it.The third – debt settlement – is used in desperate situations where the debt has reached unmanageable levels.Be aware that application and origination fees could add to the cost of the loan. But this is considered a desperation measure for a reason.Debt settlement sounds like a sexy option to consolidate debt. The ads boasting that settlement companies like National Debt Relief can get at least 50% of your debt forgiven, don’t tell the whole story.Avant requires a minimum score of 580 with an annual gross income above ,000. LENGTH OF TIME: 2-5 years with no penalty for early payment.

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