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A debt consolidation company puts together a solution that is unique to your financial situation and will help you get your debts paid off as soon as possible. After your first meeting with a debt consolidation specialist, their first order of business is contacting your creditors and negotiating on your behalf to see if they are willing to accept a lower payment, and possibly lower your interest rates. The goal is to help simplify your monthly financial commitments. After your creditors accept the proposed payment plan, your counselor will work with you to design a payment plan based on a budget analysis of your current obligations. You will then make one monthly payment to your debt consolidation company, and they disperse the proceeds to your creditors.
An important part of this repayment plan is that you agree not to apply for any new credit or incur any additional debt while you are enrolled in the debt repayment program. Another bonus for having a debt counselor is that they can provide its members with ongoing counseling and education during the repayment period, and after completion of the program to ensure individuals stay on track towards their financial goals. A reputable debt consolidation company will provide you with all of the necessary resources needed to help you prioritize and allocate your money appropriately.
|Jennifer Mathes, Ph.D.|