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.
Over 1,000 credit consolidation services and debt consolidation companies are now operating throughout the country and every day there are more. They service in the neighborhood of 400,000 consumers who are having problems meeting their monthly credit card payments and are looking for a solution to their problems.
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.
Credit consolidation services are able to be effective on behalf of the consumer because the credit card companies are smart enough to know that if the consumer is forced into bankruptcy they are less likely to see their money. If the credit card debt is turned over to a collection agency or they are forced to write it off they will not benefit.
The service will act as the advocate for the debtor and will also act as a clearinghouse of sorts by accepting payments from their clients on a monthly basis and distributing payments to each one of the creditors according to the agreed-upon amount. The entire process takes usually 4 to 5 years before the person is debt free. During this time their credit card accounts are closed down and can no longer be used.
Credit consolidation services not only provide the services mentioned but they go the next step to counsel their clients as to how they can avoid getting into the same situation again. Credit counseling and debt consolidation are used pretty much to mean the same thing in the financial industry. A reputable credit counseling service will offer many educational services that will help their clients develop a more fiscally responsible life style. - 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.
Over 1,000 credit consolidation services and debt consolidation companies are now operating throughout the country and every day there are more. They service in the neighborhood of 400,000 consumers who are having problems meeting their monthly credit card payments and are looking for a solution to their problems.
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.
Credit consolidation services are able to be effective on behalf of the consumer because the credit card companies are smart enough to know that if the consumer is forced into bankruptcy they are less likely to see their money. If the credit card debt is turned over to a collection agency or they are forced to write it off they will not benefit.
The service will act as the advocate for the debtor and will also act as a clearinghouse of sorts by accepting payments from their clients on a monthly basis and distributing payments to each one of the creditors according to the agreed-upon amount. The entire process takes usually 4 to 5 years before the person is debt free. During this time their credit card accounts are closed down and can no longer be used.
Credit consolidation services not only provide the services mentioned but they go the next step to counsel their clients as to how they can avoid getting into the same situation again. Credit counseling and debt consolidation are used pretty much to mean the same thing in the financial industry. A reputable credit counseling service will offer many educational services that will help their clients develop a more fiscally responsible life style. - 29866
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Be sure to visit www.debtconsolidationhelpquote.com to see if credit consolidation services offers you the debt solution you have been seeking.
