Do you think there is such a thing as free debt consolidation programs?
The burden of massive credit card debt can turn an otherwise happy life into a nightmare. The missed payments can turn an already bad situation worse as penalties start to mount, further adding to the debt. To top it off, the creditors start calling non-stop, and those to occur at the most inconvenient times.
How to get credit relief through consolidation
To get some credit relief, enrolling in a free debt consolidation program is a good idea for many people. Many such programs are available; however, not all of them are equally good or equally free. If consolidating debt is a serious consideration, then one should research thoroughly before signing up with a program.
All debt free programs are not alike, and there is no specified code of conduct in the debt consolidation industry; however, a good debt consolidation program will offer several benefits. It will help to either reduce or totally eliminate the interest and penalties amassed. The creditors are usually more willing to trust a company than the customer when it comes to negotiating a debt settlement.
This is why signing up with a credit relief program is better. The program allows the debtor to make a single monthly payment into the program, which is much easier than having to pay several different creditors. This payment usually carries a reduced interest rate as explained by Forbes, which is more manageable for the debtor.
How can debt consolidation programs help?
The debt consolidation programs also help in budgeting and working out a repayment schedule while keeping the needs of the debtor in mind. When one is consolidating debt through a program, the speed of which the debt is repaid is significantly decreased. For example, what may otherwise take five to seven years to pay back, it can be reduced to three years.
The best thing about a consolidation program is that it helps to get rid of the creditor’s annoying calls. Also, a good program will help one to get back on track by obtaining good credit while developing a respectable credit history.
An important point to be remembered about the free debt consolidation programs is that they are not entirely “free”. You still have to pay something. In most cases, you will have to pay a certain fee along with a monthly maintenance fee. If there are any other charges added, it is best to stay clear of such places. Hidden charges can really take one off guard and add to the cost significantly. Before signing with anyone, make sure to ask about any additional charges. The FTC has put out new rules requiring no advance fees when signing up for a credit debt relief program. You will have to pay when they are able to consolidate and settle your debts successfully.
So it may be free to get started but that does not mean you have no costs to pay.
If one is unsure of how to consolidate debt, one can get help from certified counselors. They can evaluate the existing financial position and help to select a program most suitable for individual needs. In addition, they can provide various available loan options after going over one’s income, assets liabilities, and current expenses. It should be noted that once one is debt free, every effort should be made to maintain financial discipline. It not only restores one’s self-esteem, but the overall quality of life also improves.