Seeking Debt Help? Consider Debt Consolidation Counseling

Debt consolidation counseling is a resource that has the potential to help you greatly if you are in debt. Many people who need debt help have no idea what they should be doing to get out. Here are a few things to consider about debt consolidation counseling and how it could potentially help you.

What Is Debt Consolidation Counseling?

Debt consolidation counseling is a service provided by a number of different companies. These companies could be non-profit or for-profit entities. They will work with you to identify solutions to your debt problems. They can help you come up with a plan to eliminate your debt in a shorter amount of time than you might be able to on your own.

What They Do

Debt consolidation counseling companies can provide a number of different services for you. If you are interested in debt consolidation, they could potentially help you identify programs and loans that could help. For example, they may be able to point you in the direction of a good home equity loan or an unsecured loan that could help you consolidate your accounts. 

Many of these companies will also help you consolidate your payments without taking out a loan. With this type of strategy, they set you up on a debt management plan. They call your creditors for you and negotiate an interest rate decrease. They agree on a monthly payment for you with the creditors. You then pay the counseling service a payment each month, and they, in turn, pay your creditors for you. They will also take a small fee from the payment for their services. With this plan, you are essentially making one payment for all of your debt, but you are not actually borrowing any more money in order to put this into place. 


  • Convenience--Setting up the debt consolidation process can make things a lot easier on you. Instead of making multiple payments to your creditors every month and worrying about cash flow problems, you make one payment on the same date each month. This is a lot easier to plan for. There is also no second-guessing as to which creditor you should be paying extra money to. 
  • No negotiating--When you hire a counseling service to do this process for you, you do not have to worry about doing any of the negotiating yourself. They will contact your creditors for you and try to get you the best deal on your interest rates. If you are paying off your creditors with a loan, they may be willing to lower your balance as part of a settlement as well. The debt consolidation company will handle all of this for you, and you will not have to negotiate with anyone. 
  • Quicker payoff--If you were to try to pay off all of your accounts separately with their high interest rates, it could take you many years to have them paid off. With this process, you should be able to cut down the time considerably.

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