Debt Consolidation Explained For the Rest Of Us
We've all seen the commercials touting that you can consolidate your debt, get out of debt, and have
just one payment. To some people this doesn't mean much, however, when you are paying on more than
three credit cards and the annual percentage rate keeps climbing on each of them, this starts to look
extremely enticing. Detailed here, we will step through some of the processes that are entailed in this
kind of program.
First off, about the commercial that the prospective customer responds to, they are only a middle man.
They will collect your debt information, contact information, and have you sign a preliminary contract.
Following that, you will be forwarded to the actual entity that will be handling your accounts... so don't
waste too much time asking the first contact your questions, as they are likely to tell you what you want
to hear - just to get you into the program so that they can get their commissions.
The reality of it all comes clear once you've made contact with the law office that will be handling your
case. They will go over the details of how much you owe and to whom it is owed. Once they get in
touch with your creditors, the phone calls will begin. Your creditors will be contacting you trying to
settle the debts without the new entity (usually a law office) being involved. And, you are told by the
law office not to respond to the creditors. It's a hassling couple of weeks until the creditors realize they
must deal with the law office instead of you. But, once they get the drift, the calls will stop pretty
Given time, your consolidated payment will accumulate into enough money for the law office to offer a
settlement to one or more of your creditors. Once the settlement amount is reached for one creditor, the
office will contact and ask you if you are ready to settle the debt. And then you begin the process of
saving up the money again, to settle your next creditor debt. This continues until all creditors have