Frequently Ask Questions

Getting your debts consolidated is really important but not everyone is very sure on how it works. You don’t have to be worried as to how debt consolidation companies work and how you should start the process of debt consolidation. As a result our counselors have compiled the most common debt consolidation frequently asked questions to help you out in your search for the best debt consolidation company.

How do you know if you are in debt?

In order to qualify for a debt consolidation you have to be in financial hardship with over $10,000 in secured or unsecured debt and you should want to be debt free. At present only U.S. citizens are accepted for the debt consolidation companies we have listed. Please do get in touch with individual companies for specific criteria.

How do I start the process?

The process for signing with individual debt consolidation companies may vary but the usual format is pretty simple. Select the debt consolidation company you find suitable for your needs from our listings and then get in touch with them. Almost all debt consolidation companies have a sign-up form where you fill in details and you are then contacted by a counselor via phone. It’s the duty of each individual counselor to figure out your debt and how you can pay off your debt within your expenses. He will suggest a repayment plan and then wait for your approval. You can refuse or accept the conditions offered by the debt counselor and this is dependent on your acceptance of the proposal.

Does this affect my credit?

If you have not settled your debts then this does get reflected in your credit card statements. But once you have settled your credit to your outstanding debt to your credit agencies then your credit history automatically improves due to the payment you have paid to the credit agencies.

What if my creditors don’t want to negotiate the debt I have?

Most credit agencies are more than happy to clear the credit of outstanding creditors. There are very few agencies that will not negotiate with a debt consolidation agency and the better the agency the better the discounts you get on your loans. Our debt consolidation companies have the professional expertise to deal with thousands of professional credit agencies and creditors everyday. We can assure you that almost all credit agencies will deal with debt consolidation companies to help you settle your debt.

Can I do this myself?

Yes and no! It’s as good as asking an amateur to do a professional’s job. When you ring up bank’s or credit agencies on your own to ask for a credit settlement you will be fobbed of by professionals who are well prepared to deal with your inexpertise. You will even be referred to a hardship program which may not be the best option available for you. You definitely need a trained agent who knows how to handle credit agencies and bank son your behalf who know the tricks of the trade. In fact one of the best facilities which are available to you are that when you sign up a debt consolidation agency, you can no longer be harassed by credit collection agencies and they are not allowed to contact you. A professional negotiator is a debt collection agency is the best option for you to clear your debts.

After using a debt consolidation company can I still use the same credit cards?

Yes and no. After consolidation a few of your credit cards will be closed to allow the payments to be collected under one umbrella. A few credit cards can be active depending on your paying capacity and your current liabilities.

Is debt consolidation the same as a Chapter 13 bankruptcy?

A debt consolidation process is a purely voluntary process where you choose your debt consolidation agency depending on your debts. But in a Chapter 13 bankruptcy, your creditors will force you to accept bankruptcy to negotiate new payment terms. The court will also have to appoint a Trustee to oversee your finances. Along with declaring your income you will also have to attend frequent court appearances, attend all creditor conferences, select a lawyer and meet with judges.

What types of debt do you assist with?

Debt consolidation agencies deal with almost all types of credit including credit cards of every variety like Visa, Mastercard, etc. some debt consolidation agencies also include medical bills, personal unsecured loans, bills and almost all types of unsecured loans. However, house mortgages and car loans are not included in this type of consolidation procedures.

What do I need to start?

Since you have already taken the decision to consolidate your loans you need to choose the best debt consolidation company from our extensive database. You can choose the location you want the state you want by using our fast and easy search engine. You will also find all your bills and get them ready for submission. After contacting the company you will get a call from a debt counselor within 24 hours.