What is debt consolidation?
A. Debt consolidation is a way to pay off many debts (such as credit card bills) with a single loan. You take out a loan for the total amount of all your debts, pay off each of your creditors, and end up having only to make one smaller payment to Home Loan. By consolidating your debt you can often reduce your monthly payments and actually have some money left over. Contact us for more information, or use the Debt Consolidation Calculator to estimate how much extra cash you can have on hand each month.
A. When you consolidate debt, you are combining of all your unsecured monthly bills into one monthly payment and with a single interest rate. Myfcdc.org Consumer Debt Consolidation does not offer loans, instead, we work with our clients and their creditors to reduce their overall interest rate, monthly payments, and most importantly the time it takes to pay off their debt. At Myfcdc.org Consumer Debt Consolidation our goal is to help you the client with excellent costumer service and years of industry experience.
Debt consolidation plans involve restructuring your existing debt with your existing creditors. Money is not loaned, and creditors do not change — but the terms and conditions under which the existing debt can be repaid usually change significantly. Under our Debt Consolidation Plan, the monthly payment which is expected by the creditors is typically lowered and, in most cases, interest due to the creditors is lowered — and sometimes totally eliminated. A person qualifying for a debt repayment program will usually find they are making more progress towards reducing their debt even though they are making lower monthly payments. Since most creditors report payments received under this plan as prompt payment, the person’s credit report is usually improved by a payment plan.
Debt consolidation is probably the most effective way to reduce and restructure your debt. You may wonder how another loan can possibly reduce your debt – but the way a debt consolidation loan works is different. Your debt consolidation plan will pay off all of your current debt. This will immediately help your credit by showing all of your creditors paid in full. Now, instead of having many small loans, you will have a single loan with one monthly payment. The new loan will be at a lower interest rate than the combined rates your were paying previously – thereby saving you hundreds or even thousands of dollars. It also streamlines your debt into a much more manageable payment. There are many affordable payment plans available to fit your budget.
