Once you enlist the services of a debt consolidation company, the will act as mediator on your behalf between you and your creditors, effective immediately. Your creditors will cease and desist from contacting you and will work directly with them. In most cases, you will even stop receiving bills from them, as the debt consolidation company will be handling your bills on your behalf.
Your debt consolidation company will be negotiating a lower interest rate and lower monthly payments with each of your creditors. It is not uncommon for your monthly payments and debts to be slashed by as much as 50%. You will then be entering into an agreement to make one single, lower monthly payment directly payable to the consolidation company. The payment plan will take a few short years, typically up to 5 years, to pay off, depending on how much debt you had, to begin with.
One downside to debt consolidation is that it can lower your credit score for the duration that you are on the plan. However, the upside is that your debts will all be marked as paid in full on your credit report once you have finished repaying your negotiated balance. For many people, this trade off is worth the piece of mind. Paying off the debt is a higher priority for them than preserving their credit.
Also, debt consolidation is not free. You will have to pay a modest monthly fee for their services. This fee is usually included in the monthly payment you are making. But since your monthly payments are significantly less than what they were before even with the fee, this fee is worth the monthly savings and is often not a factor.
So what are you waiting for? Are you looking for instant debt relief? Click here to get for a free consultation: http://www.InstantDebtRelief.info/
By Hyder Khan
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