Debt consolidation companies provide a service to help debtors get a handle on their debt. A reputable debt consolidation company can negotiate with creditors to get reductions in payments, interest rates and payoff settlements in compromise for the total balance of accounts. With the help of a reputable debt consolidation company, the debtor is provided with assistance finding a debt solution that works for their situation. The debtor can utilize a debt consolidation company representative to negotiate reduce monthly payments
How Debt Consolidation Works
The debt consolidation company works with the debtor to create a plan of action for the debt. If the debtor has access to a sum of money to pay down their debt, the debt consolidation company will help the debtor create a debt settlement plan.
The Debt Settlement Plan
The Debt Settlement Plan is a plan that is created to settle the debtor’s debt for less than the owed balance. A debt consolidation company representative will negotiate with the creditors and make offers to pay off a portion of the balance of each account. Once the terms are negotiated and agreed upon, the debtor pays each creditor the offered amount and the account is considered paid off.
The Debt Management Plan
Some debt management companies will work with debtors to create a debt management plan. The debt consolidation representative negotiates with creditors to lower interest rates, lower monthly payments and extend terms of the debtor’s accounts. If successful, the debtor’s monthly bills are reduced.
When a debt consolidation company works with a debtor, the company creates an escrow account for plan payments. The debtor pays monthly payments into the escrow account. When a specified amount of time has passed, and the escrow account is built up, the creditors are paid off. Working with a debt consolidation company is often an alternative to filing bankruptcy.
Reputable debt consolidation companies provide their services for a low fee. Some nonprofit agencies may offer services at a reduced rate or free. However, some debt consolidation companies will charge high rates for their services. Other companies will offer high interest debt consolidation loans to use to reduce your debt. A debt consolidation loan is a service that is different from the debt negotiations and revisions provided by a debt consolidation company.
Some of the most reputable debt consolidation companies include:
Freedom Debt Relief
Freedom Debt Relief works by negotiating with creditors to reduce debt. An escrow account is created and the debtor pays into the account based on a predetermined schedule. For example, the debt management plan may have been negotiated for 24 months. The escrow account builds over the 24 month period, and then the money is used to clear the debt. Freedom Debt Relief is reviewed well by most previous customers. Additionally, Freedom Debt Relief is consistently named on the Top lists of debt consolidation companies.
CareOne Debt Relief Services
CareOne is a large debt consolidation company with offices nationwide. CareOne provides excellent customer service and is well rated by current and former customers. CareOne is consistently rated among the best debt consolidation companies in the U.S.
Though not as well known or as large as other debt consolidation services, CuraDebt is building a stellar reputation as an effective and trustworthy debt consolidation company.
Additional debt consolidation services that provide debtors with honest and reliable debt reduction and plans include:
– Coastal Credit Solutions
– Premier Financial Debt Help
– Oak View Law Group
These companies are positively reviewed by past and present customers. These companies are also well established in the debt consolidation industry. When you decide to consolidate your debt using a debt consolidation company, choose a reputable company with a history of satisfying customers. The debt consolidation company you choose will be the company you will work with over the next two, three or more years to resolve your debt. Be sure to select the company that best meets your needs.