FAQ - Debt Consolidation Program

Testimonials Debt Consolidation Program

Before I discovered credit.aeratio.com help, I was almost afraid to answer the phone in case it was another creditor wanting money, and no matter how I tried, I couldn't even begin to keep up with all the payments! Now, I can rest assured that my debts are being paid each month, and no longer worry every time the phone rings! If FAQ - Debt Consolidation Program had not given me this chance, I would still be struggling. Since then I have been able to get my life back on track without all the stress of bills. From the bottom of my heart, I thank you. Debt Relief Counseling
Mark, Georgia

After a bad divorce, and a bad car accident, I was struggling to pay the bills. I had just enough money each week to pay the minimums on the large credit card balances leaving me no money to live. I thought I was prepared for times like these, but I thought wrong. My friend recommended to me FAQ - Debt Consolidation Program services. After I filled a free application they called me and explained the whole program. I was able to set me up on a program that reduced my interest and they were able to stop all the other charges like late fees/over limit fees. I was able to save my credit and get debt free without filling bankruptcy. Consolidation service debt settlement
John, New York

F.A.Q.

What is Debt Consolidation?
A debt consolidation program is a process that allows a professional agency to reach an agreement with your creditors to achieve the lowest and most affordable monthly payment option needed to satisfy all your credit accounts

How can I determine if a debt consolidation loan is right for me?
Start by understanding what a debt consolidation loan is and how it fits into solving your personal debt situation.

How much can I reduce my monthly payments by?
This will depend on how much you are paying at the moment and how long you want to take to repay the loan. But reductions in monthly payments can be as much as 75%

Can I use the loan for more than debt consolidation?
Certainly. Consolidating your existing credit allows you to free up money for other things. You can borrow extra for that new car, boat or caravan, to pay for your dream holiday or so you can have the new windows or conservatory put in. The choice is yours, as long as you do not over-borrow

Are my creditors going to continue to call me?
When you signup with a debt consolidation program, the firm notifies your creditors and demand they stop contacting you. It usually takes about 30-60 days for them to stop contacting you. In the meantime, you will keep a creditor log of every phone call or letter that you receive from a creditor and report it to your debt consolidation agency

Isn't a debt consolidation loan just a loan where you get money to pay off your bills?
No. In almost all cases a debt consolidation loan is structured as a second mortgage on your primary residence.

What difference does that make?
Most debtors attempting to obtain a debt consolidation loan face issues with unsecured debt, such as credit card bills. A second mortgage represents a secured debt. This becomes of critical importance if things go from bad to worse. With unsecured debt a chapter 7 bankruptcy can discharge the debt, completely relieving the individual of the obligation. In the case of secured debt, such as a second mortgage, even in a bankruptcy situation, the creditor has the right to seize the collateral if the loan cannot be repaid. When speaking about a second mortgage that would mean foreclosure on the property.

What if a debt consolidation loan would really cure all my problems? Are there any other dangers?
Yes. The debtor must examine how the trouble began. One of the most common pitfalls and recipes for the worst of disasters happens when people take on a debt consolidation loan without rectifying the true cause of the debt. A typical situation would play out like this: Individuals get into debt trouble because they are living beyond their means and supporting their spending habits with credit cards. A debt consolidation loan seems to solve things by paying off the debts. Unfortunately, if the spending habits continue, the individuals find in another year or two they have run their credit cards up to the same levels or higher than they were before the debt consolidation loan. Only this time the equity in their house has all been used up by the debt consolidation loan. They are unable to pay either the new bills or the debt consolidation loan and bankruptcy and foreclosure becomes await them.

What is the best way to avoid this scenario?
Find out why the debt has truly accumulated. In a case of irresponsible use of credit cards, after paying off the credit cards with a debt consolidation loan, cut the credit cards up. If you need to have credit cards for rental cars, business trips or on-line purchases consider secured credit cards or debit cards. Spending on secured credit cards cannot exceed a limit based on the value of an accompanying savings account. Use of debit cards require you have money in an account in order to use the card.