Free debt consolidation service programs exist to help consumers whose bills are snowing them under get out from under the burden of debt. The way these programs work is that you turn all of your bills over to them and they pay the bills.
You just make one payment to them and they take care of the rest.
A free debt consolidation service is ideal for the consumer who doesn’t know how to handle his or her own finances.A free debt consolidation service can negotiate with your creditors to lower the interest rate and even sometimes reduce the principle.
The credit card companies know that if they do not work with you, you might consider the option of bankruptcy in which case they receive nothing. That’s why they work with the consolidation company.Once the bills are at a manageable level, you make one payment to the free debt consolidation service. They, in turn, pay the negotiated rates to all of your creditors.
Having lower principle and/or interest rates is one advantage to the service. Another advantage is the one payment policy. You may develop better credit as a result of entering such a program.Once you get into a consolidation program, you should begin to see your credit scores rise. That’s because you will be paying off all of your debts on time each month.
You will probably find it easier to keep track of one debt rather than many. To find a free debt consolidation service, you have many options. You can consult the phone book or the internet for listings. You should also ask from recommendations from friends and neighbors. They can tell you about good experiences they have had as well as nightmare scenarios because those too exist.
Your church may offer a free debt consolidation service or your pastor may know of ones which he or she can recommend. Because the church is in touch with the larger non-profit community, this may be the best avenue for you to pursue.
If you are looking for a free debt consolidation service, stay away from for-profit companies. Many of these “services” are really scams. And, even the legitimate ones will tack fees onto their services in order to turn a profit.
That doesn’t mean that every for-profit debt consolidation company is bad, but there are so many community based non profit services, that it makes a lot more sense to go with one of these.Whether you choose a non profit or a for profit free debt consolidation service, you should periodically check with your old creditors to make sure that they are receiving payments from the services. There have been horror stories about companies skimming off the money and not paying the bills.
This leaves your credit in even worse shape, even though it was the company at fault through fraud.Being in debt is never fun. Getting out of debt is hard. But a free debt consolidation service can help you get solvent again.
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