Frequently Asked Questions about Debt Consolidation

Here are the answers to the most commonly asked questions about debt consolidation.

What is debt consolidation?

Debt consolidation is a service whereby your many, high-interest debts are combined into one monthly payment with reduced interest rates. Your debt consolidation service has negotiated with most major creditors to secure lower interest rates that are not available to the public. When you sign up for the best debt loan consolidation rates, these reduced interest rates are passed onto you. You then make one, easy monthly payment to your debt consolidation service. The service then divvies up the payment among your creditors. Learn more about why you should consolidate on the next page.

How do I apply for the best debt loan consolidation rates?

You can apply for the best debt loan consolidation rates with our free online application. Our application will ask you for some basic information, and we will then provide you with a free quote on debt consolidation. You can apply for the best debt loan consolidation rates for free with no obligation. Our quote can help you determine which of our services is right for you.

How much does debt consolidation cost?

Usually, you will pay a one-time commission for the best debt loan consolidation rates in addition to a monthly administrative fee. The commission you will pay is commensurate with the amount of your new negotiated monthly payment. For example, if your debt consolidation service reduced your monthly payment from $500 to $250, your first monthly payment would be $500 ($250 for your monthly payment, $250 in commission). After that, you would just pay the amount of your monthly payment. You will also typically pay a monthly administrative fee that might be a flat fee or a per-creditor fee. Administrative fees range anywhere from $10-$40.

Will debt consolidation harm my credit?

Taking advantage of the best debt loan consolidation rates through our debt consolidation service will not have a negative impact on your credit. In fact, debt consolidation usually improves your credit by helping you pay your bills on time and reducing your debt-to-limit ratio. Debt negotiation, on the other hand, will have an initially negative impact on your credit. Debt negotiation requires you to stop paying your creditors temporarily, which will hurt your credit for a time. Some debt consolidation companies offer credit repair service in conjunction with debt negotiation to help you restore your credit after you complete the program.

How soon will I be out of debt with debt consolidation?

With the best debt loan consolidation rates, you can get out of debt much faster. How quickly you will be able to get out of debt will depend on the amount of your debt and the rates negotiated with your creditors. On average, our customers become debt free in about four to eight years.