Are you carrying a lot of debt right now? Every time your phone rings, do you wonder if it's another bill collector? Do you wake up in the middle of the night and worry that you forgot to pay something? If this is the case, you might want to think about getting help from a debt consolidation service.
And if you choose a debt consolidation service that doesn't charge a fee and is already paid for by many of the creditors they help pay off, you could benefit even more because they will put the whole amount you pay toward your debts instead of keeping some of it for themselves.
But non-profit debt consolidation services offer a lot more than just combining debts and paying them off. They also tell people how to keep their finances on track, how to make monthly budgets that work, and how to fix a bad credit score.
Getting your money in order is the first step, of course. The debt consolidation service will help you make a list of all your outstanding unsecured debts, how much you owe to each one, and how much you should be paying each month in total.
The next step is to figure out how much you spend each month. These include your mortgage or rent, your utility bills, child care costs, and any other payments you have to make, especially if they are backed by your property. Once you've made your budget, you can figure out how much you can spend each month on your debt consolidation.
Once you know how much you can afford to pay toward your debts each month, the debt consolidation service will talk to each of your creditors and ask them to agree to a lower monthly payment amount. Sometimes they can even get your creditors to lower your interest rates or stop charging you fees for being late or going over your credit limit. Most of your creditors will be willing to work with you because they know that if they don't negotiate a lower payment, they probably won't get any money for the debt.
Now, let's talk about the risks of using a service to combine your debts. Basically, the only risk is if you use a service to consolidate your debts that is not professional or legit. Do some research and even ask your creditors if there is a company they work with often that they can recommend.
After that, there's really nothing bad. The good thing is that you won't have to worry about paying your bills on time every month.
