Consolidation debt help

Debt consolidation is a thriving field on the internet that resembles a big pot of soup with many ingredients. Debt consolidation is a healthy business because of two complementary facts:

Many consumers are in debt trouble thanks to overuse of credit cards.

Creditors wish to avoid all hope of repayment if the consumer declares bankruptcy.

Basically, then, debt consolidation is bankruptcy evasion, which can be a win-win solution for both the consumer and his or her creditors. Consumers can put an end to the stress of receiving creditor phone calls and consolidate their various debts into one negotiated payment. Creditors can stop spending their resources pursuing the debt and be confident that they will receive at least a compromise payment.

Sorting through the thicket of competing sites, debt consolidation as a distinct field is comprised of the following core services:

Credit Counseling. Not consolidation services, strictly speaking, credit counselors are usually nonprofit companies that seek to educate consumers into more productive paths than bankruptcy.

Credit negotiators. By far the biggest niche of debt consolidation, credit negotiators treat dire consumer debt scenarios through negotiation with creditors. In the best cases, the result of such negotiation is lowered interest rates, elimination of delinquent late fees and a new repayment schedule for the consumer.

Loan companies. Much less common than negotiators, some companies lend consumers money to work their way out of debt. The loan consolidates many creditors into just one.

In order to qualify for debt consolidation service that goes beyond more counseling, most companies require at least a certain amount of debt. And that debt must be unsecured debt. debt consolidation clients must be at least 18 years old and have a minimum income. The only other requirement is a willingness to pay one's debts and avoid personal bankruptcy.

Here is how debt consolidation through negotiation typically works:

At a debt consolidation site, fill out an online application. The application form asks for details about all the debts needed to consolidate.

The consolidation company contacts either by email or on the phone to discuss the specifics of the situation and how the company might be able to help.

Make an agreement with the consolidation company and authorize it to negotiate with creditors on the behalf. A signed agreement is usually required and sometimes a first payment.

The consolidation company notifies all the creditors that have entered a debt consolidation program. Immediately, all creditor phone calls stop.

The consolidation company negotiates new repayment terms with creditors, resulting in a single payment plan.

Every month, send a check to the consolidation company, which disburses the money to creditors.

When the program is complete, the consolidation company may obtain letters from the creditors acknowledging that the debts are closed.

E-Debt consolidation

This company provides negotiated debt reduction for consumers with at least $5,000 in delinquencies. E-Debt consolidation claims an impressive list of creditors who recognize them and work with renegotiations every day. A free analysis consultation is offered. The company charges a fee, bundled into the negotiated monthly payment.

Debt consolidation online

This company is strong on information and dissuasion, warning visitors of the long term disabling consequences of bankruptcy. Not a negotiator. Debt consolidation online is a broker for debt consolidation loans. Visitors are helped by the plainness of the site, which does not throw a lot of distractions or ads on its pages.

Federal debt consolidation services

Federal debt consolidation services claims to suppress finance charges, interest rates and late fees. It works with a wide assortment of creditors, including Visa, Master Card, Sears, American Express and others. In the detailed online application, list all the debts. Applications by fax and postal mail are also supported.

Washington debt consolidation

This debt renegotiator presents an attractive and encouraging site. The FAQ page is too brief, though and the online application does not provide enough fields to enter creditor information easily.

American debt consolidation

This is a sympathetic, informative and clear site with a good online application form. American debt consolidation advertises to reduce repayment interest rates to between 5 and 10 percent. Interestingly, the company distributes creditor payments by wire transfer and claims that this convenience makes creditors eager to negotiate.

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