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| The independent answer to your debt problems | login join |
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debtconsole
| 27-05-2008 09:09 PM |
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Joined: 27 May 2008 Posts: 2 | Credit counseling is a very common form of online debt consolidation. It is also known as credit card consolidation. Currently rising interest rates and mounting credit card debt is prompting many consumers to look for ways to consolidate their credit card bills and so credit card counseling gained recognition among people. Credit counseling helps to make one payment directly to them, which then they distributes to your creditors. Most times, a credit counseling agency will be able to lower your monthly payments by getting interest rate concessions from your creditors by contacting your credit card companies and negotiating for lower interest rate on your behalf. You can usually expect to pay back your entire balance on the debt that you owe and anywhere between six and twelve percent of the interest. This is about half of what your normal interest would be currently. On average, most online credit counseling programs take around five years. As such, credit card consolidation does not affect your credit rating. In fact, the results of consolidation are often positive simply because it's easier to manage and you pay less interest. |
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mcctank
| 09-08-2008 02:51 PM |
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Joined: 09 Aug 2008 Posts: 8 | is it true that my debtors will still contack me for payment? |
| paladin | 10-08-2008 10:07 AM |
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Joined: 06 Jun 2007 Posts: 77 My Profile | The credit counseling mentioned above is one common in America. The British equivalent is debt management programme (DMP) which is an informal arrangement between creditors and debtors. However, if you live in Scotland, it can be formalised, using the Debt Arrangement Scheme (DAS) In an informal DMP creditors can still contact you but in DAS they can't. Hope this helps P |
