Consumer debt in this country has risen at an astounding rate over the last decade and credit consolidation services are expanding their businesses to help people deal with their debt. Research estimates that the average American carries a debt load of $7,000 to $9,000 much of it is credit card debt. With skyrocketing interest rates and rising costs, many people have found themselves in dire financial straits.
There are many people whose debt load far exceeds this amount, reaching in to tens of thousands of dollars with interest rates that keep going up all the time. At some point, many of these individuals reach a point where they can no longer make their monthly payments. This just causes penalties and fees to mount on top of debt they already can't afford.
Credit consolidation services have stepped in to try and assist the people who are in over their heads. Right now there are approximately 400,000 consumers working with over 1,000 services nationwide. The consumer is desperate to find a solution to their debt load and these services have become an extremely popular option for many.
These debt consolidation companies and services work with the creditors on behalf of the individual with the credit card debt. They have an ongoing relationship with these banks and credit card companies that enables them to negotiate for lowers interest rates, eliminate fees and late charges and do everything they can to create a situation where the debt holder can afford the payments.
The creditors for their part are usually cooperative when it comes to working with credit consolidation services because they know full well that if they do not then the chances of the person that owes them money going into default or declaring bankruptcy are great. And when that happens the credit issuer is out of luck. At that point they usually just write off the debt and sell it to a collection agency.
These services act not only as a negotiator on behalf of their clients but also set up agreements with their clients and the consumer actually makes their monthly payment to the service, who then pays the creditor. All credit cards are cancelled and accounts closed. But the client is then able to pay off their debt via the service to the credit card company in four or five years. They will then be debt free.
Credit Consolidation services often offer credit counseling as well. That is why the terms credit counseling and debt consolidation have become synonymous in the industry. A reputable service will counsel and educate their clients to help them avoid making the same financial mistakes in the future. They help them figure out where things when wrong and what to do to prevent them from happening again. - 29866
There are many people whose debt load far exceeds this amount, reaching in to tens of thousands of dollars with interest rates that keep going up all the time. At some point, many of these individuals reach a point where they can no longer make their monthly payments. This just causes penalties and fees to mount on top of debt they already can't afford.
Credit consolidation services have stepped in to try and assist the people who are in over their heads. Right now there are approximately 400,000 consumers working with over 1,000 services nationwide. The consumer is desperate to find a solution to their debt load and these services have become an extremely popular option for many.
These debt consolidation companies and services work with the creditors on behalf of the individual with the credit card debt. They have an ongoing relationship with these banks and credit card companies that enables them to negotiate for lowers interest rates, eliminate fees and late charges and do everything they can to create a situation where the debt holder can afford the payments.
The creditors for their part are usually cooperative when it comes to working with credit consolidation services because they know full well that if they do not then the chances of the person that owes them money going into default or declaring bankruptcy are great. And when that happens the credit issuer is out of luck. At that point they usually just write off the debt and sell it to a collection agency.
These services act not only as a negotiator on behalf of their clients but also set up agreements with their clients and the consumer actually makes their monthly payment to the service, who then pays the creditor. All credit cards are cancelled and accounts closed. But the client is then able to pay off their debt via the service to the credit card company in four or five years. They will then be debt free.
Credit Consolidation services often offer credit counseling as well. That is why the terms credit counseling and debt consolidation have become synonymous in the industry. A reputable service will counsel and educate their clients to help them avoid making the same financial mistakes in the future. They help them figure out where things when wrong and what to do to prevent them from happening again. - 29866
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Be sure to visit www.debtconsolidationhelpquote.com to see if credit consolidation services is what you are seeking to become debt free.
