For people struggling with the repayment of their credit card bills, there is hope from the Consumer Debt Consolidation Companies. As people are drowning in debt and not having enough means to repay their loans, a Debt consolidation company can give you a helping hand. The financial industry has now come up with many ways of dealing with consumer debt and debt consolidation is one of them. This is how it works-
A Counselor from the company comes to your help and reviews your debt. After the review, you and teh counsellor decide on a plan to repay the bills. The counsellor devices a plan of repayment based on your monthly income.
Once an agreement is done between you and the counsellor, he/she designs a plan for your essentials like the gasoline, food, housing, clothing etc. The remaining money from your income will be repaid to the loaning companies.
The plan is shown to the credit card issuers. Through a proposal the counselor speaks on behalf of the debtor and tries to negotiate the interest rates or even get them nullified. Once every detail of the plan is discussed, the two parties come to an agreement and sign the deal.
The counselor now acts as a mediator, who sends your money to the creditors monthly. You have to stick to your deal and send money to the counselor regularly.
The payments are recorded in the financial statements and a copy is sent to your every month. This statement will show your outstanding and the repaid amount. It is necessary to save copies of all statements.
The Debt Consolidation Company provides you all these services for a fee, which is decided upon in your first session.
Debt Consolidation Companies help you reduce your burden by giving you the right guidance for repayment they can also help you with PPI claims. They help you reducing your worry and then ensure the credit card companies that you are in the right path of repayment.? You can forget about filing for bankruptcy and lead a normal life.
What is the best way to know which Debt Consolidation Company is good for you? Browse the internet to find reputed companies that are members of National Foundation for Credit Counselling (NFCC). A good Debt Consolidation Company is also known by its accreditation by the Counsel on Accreditation (COA).
Do not get fooled by tall claims and scams. Be smart and choose the right company that can manage your debt well and helps you avoid bankruptcy.
Source: http://www.endangeredfishalliance.org/how-do-the-debt-consolidation-companies-help-you/
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