Debt consolidating counseling datingarianne

29 Feb

It provides the convenience of requiring just one monthly payment of the borrower. Let's say that, for whatever reason, you find yourself with more than one credit card that is carrying a balance you can't pay off all at once.In addition, you are still making payments on a car, and then you had some unexpected expenses (health-related, for example, or repairs) that you owe money on.Credit counseling can be a good option if you are interested in re-evaluating your spending and saving habits, as well as entering into a debt management plan (DMP).A DMP allows you to continue making monthly payments to your creditors, but consolidates your payment into one lump sum that you pay the credit counselor each month. Make sure you check with the Office of the Consumer Credit Commissioner and use a licensed credit counselor.

Once you have saved sufficient funds, the company will contact your creditor, and negotiate a lump sum payoff of your debt, often for a significantly reduced amount.

Use caution in selecting a debt settlement company - because you will stop paying your debts your credit will decline and you may be faced with extreme collection efforts, including having lawsuits filed against you.

It is in your best interest to pay down your debts as quickly as possible.

If a debt consolidation loan can help you get control of your finances before you have begun to miss payments, you may be able to avoid or minimize damage to your credit rating. Look out for the usual red flags, like extravagant promises that your debts will be forgiven and that you can get out from under a mountain of debt with very low payments.

And remember, some of these services may be scams - make sure you do research on the company you choose and that you are comfortable that is trusted and reliable.