Why You Should Be Using Debt Consolidation Companies

debt consolidation company

Lawliet Being overwhelmed with debt will never be a pleasant experience. If you’re currently in this kind of situation, you probably considered hiring debt consolidation companies to help you negotiate payments with each of your creditors. If so, here’s what you need to know about this.

What Is Debt Consolidation?

For starters, you have to know what debt consolidation is. Debt consolidation is a type of loan wherein multiple debts are merged together into a single debt. The purpose of this is to simplify the repayment schedule, at the same time, lower the overall monthly payment amount. Usually, hiring a debt consolidation company is advised, because they can help you pay off your debt quickly. Likewise, you won’t get stressed in shouldering all of your bills. Thus, for those who have mounting unsecured debt, such as store cards, credit cards, medical bills, accounts in collection, student or personal loans, then you must work with a debt consolidation company to settle your financial problem once and for all.

What Do Debt Consolidation Companies Do For People?

Debt consolidation companies provide solutions to merge several debts, such as home loans, credit card bills, and other loans into a single monthly payment. This debt management solution may be beneficial for those with outstanding debts, especially if their debts already have high interest rates.

With their help, you’ll be able to come up with a workable budget, settle your debt, and even save enough money for retirement. Your debts would be combined into one, easy-to-manage monthly payment. Likewise, debt counselors also provide a number of services not only in their local offices, but online and over the phone as well. You’ll be able to discuss your debt consolidation plan with them, even without going to their office.

Some of the most common debt consolidation companies:

– Companies that consolidate credit cards and other unsecured debts
This is the most common debt consolidation company that can be found online, or when you simply type, “debt consolidation companies” in major search engines. This company covers store cards, credit cards, gas cards, medical bills, payday loans, and even unsecured loans.

– Medical Debt Consolidation Companies
These are firms that talk with medical debt collectors in order to settle your unpaid medical bills, usually for less than the original amount. You have to consider that it doesn’t work like other consolidate loans, because there are no interest charges applied here.

– Student Loan Debt Consolidation Companies
This can either be federal student loan debts, or one coming from a private lender that provides private student debt consolidation loans. These companies won’t consolidate your debt, but they would help you sign up and prepare the documentation for federal programs.

– Tax Debt Consolidation Companies
This is quite similar to medical debt consolidation. The penalties and interest are assessed by the IRS. That means instead of interest rate negotiation, it will be a penalty abatement instead.

Two of the Most Popular Debt Consolidation Companies
Here are the top 2 debt consolidation companies worth checking out.

Accredited Debt Relief 
Accredited Debt Relief is best known for offering debt counseling and helps their client come up with the best debt management plans. They carefully assess the debt obligations, as well as the available resources to come up with a feasible financial plan.

Price: Accredited Debt Relief takes a percentage of the amount of debt being settled, which can go between 18-25%, depending on the debt.

Timeframe: Debt settlement should take place between 24-48 months; which is considered to be the average period for debt settlement.

What Made Them Popular: They’re considered to be one of the best companies when it comes to debt consolidation services and debt management tools. Their team of professionals would help you consolidate your debt and pay the lowest interest rate for it.

National Debt Relief
National Debt Relief could help you prevent bankruptcy as they will be the one to talk to your creditors and convince them to agree with debt settlement. Aside from that, they also offer financial consultation, as well as education to ensure that you won’t be a victim of debt again in the future.

Price: Similar to Accredited Debt Relief, National Debt Relief changes 15-25% of whatever debt is paid for you. No need to worry about any additional fees.

Timeframe: Debt settlement should take place between 24-48 months; which is considered to be the average period for debt settlement.

What Made Them Popular: They are widely used in almost 34 states within the US.