Bill Consolidation
American Debt
Foundation
http://www.americandebtfoundation.com
There are many companies out there
offering "bill consolidation,” also known as Bill
Consolidation,
Bill Management, bill consolidation Loans, Debt Management Plans,
Credit Counseling, Credit Management or Debt Elimination. These
companies make many claims that seem almost too good to be true but
that are reality for the right candidate:
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Bill Consolidation Form) |
American Debt
Foundation
http://www.americandebtfoundation.com
Bill Consolidation
Call Us Today For A Free
Bill Consolidation Quote!
1(866)411-3328-
1(866)411-DEBT
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Consolidate your debts into one
low monthly payment.
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Reduce your debt by 40%-60%, in
some cases even more.
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Eliminate interest and late
fees.
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Stop harassing and threatening
phone calls.
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Get out of debt in a fraction
of the time.
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Rebuild poor credit
We are dedicated to helping you sift through bogus claims some of
these companies make to find the real benefits that they can
provide. Sometimes a bill consolidation company can provide great
peace of mind. Hopefully this article will assist you in making a
better decision in choosing a company to help you solve your debt
problem.
There are two major categories of debt assistance:
Bill Consolidation
and
Debt
Negotiation. Each of these can be broken down into
several other sub-categories. This section talks about
bill consolidation.
Simply put, a bill
consolidation service has preset arrangements with almost all of the
major creditors, mostly credit card companies, and some medical &
collection companies. These agreements allow bill consolidation
companies to grant its customers access to much lower interest rates
on unsecured debt that the customer has piled up. These interest
rates are pre-negotiated for people that use the bill consolidation
services and have those same companies as creditors. When you call a
bill consolidation company they reference this pre-negotiated
creditor interest rate sheet and then give you a new payment based
on the lower interest rates they have negotiated with that
particular creditor. Typically this payment is lower than the rate
most credit card companies offer the public and more often than not
will save you money on your monthly credit card bills and simplify
your payments if you have multiple creditors.
One caveat of the bill consolidation plan is that you must cancel
any and all cards you include in the program so that they can be
paid off. You may wish to exclude a card for emergencies, depending
upon the policies of the bill consolidation company you choose to
work with.
One benefit of the bill consolidation Program comes into play if you
are behind on payments and are getting harassed by your creditors.
If you can make the new, lower monthly payment, the bill
consolidation company will stop the creditors from calling you and
keep them satisfied in the interim.
The payments are usually setup to last four to eight years but
statistics have shown that there is a significant fallout on bill
consolidation programs due to unrest, changing situations, and poor
customer service. So, to get the greatest benefit from a bill
consolidation program, make sure you are committed to utilizing this
innovative solution for the long term.
Expect to pay two types of commissions to a bill consolidation
company. The first type is roughly your first payment you'd make
toward the program that does not go directly toward your creditors
but gets the wheels of the debt management company turning. The
second type is a monthly administration fee. For example: Say you
owed $10,000 in credit card debt and your existing payment you were
making was $350. With the lower interest payments that can be
secured from creditors by bill consolidation companies, the bill
consolidation company got you to $250 per month, a $100 "savings".
You then would make a payment in the form of a monthly draft out of
your checking account for the $250. Typically this doesn't cover a
payment to your creditors so you'll need to cough up another $250
that month to pay your creditor bills.
The administrative fee pays the people at the bill consolidation
company that deal with your creditors and keeps the program running.
It is compensation to the bill consolidation company for getting
your interest rates and monthly payments reduced. Monthly “admin”
fees of different bill consolidation firms range all over the board.
Some charge a flat fee anywhere from $10-$40, others charge a per
creditor fee of $5. Either way, you're paying about $30 per month
that doesn't go toward your debt.
You might be wondering which types of people will benefit
financially from a bill consolidation program. A bill consolidation
Program significantly benefits those who have very high interest
rates (above 18%), have more credit card bills then they can keep up
with, or would just like the simplicity of one payment to one
company for all of their unsecured debt.
Bill Consolidation
American Debt
Foundation
http://www.americandebtfoundation.com