How Does Debt Consolidation Work?

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Debt consolidation is a process by which we negotiate with all of your creditors to obtain the lowest monthly obligation needed to satisfy all of your current accounts.

You pay one "lump" sum monthly which is in turn portioned out to your creditors. This monthly payment will in almost all cases be lower (perhaps by as much as 60%) than the sum of your individual account obligations combined.

We are able to negotiate lower monthly payments because:

We work with many large creditors and have many clients. Because creditors are receiving payments from us on many accounts, they often are willing to reduce and/or eliminate both interest and late charges to our clients.

Because we are recognized by creditors as a leading provider of debt consolidation services, we can also extend the terms of the incurred debt at a reduced and/or eliminated interest rate with no late fees or further adverse effect on your credit history.

Creditors recognize that people who enter a debt consolidation program are trying to repay their obligations in good faith. Creditors are more willing to extend favorable terms to such clients in the hope of avoiding the significant expense of turning the account over to a collections firm or avoid an extended drawn out process if the account holder goes through the expense of declaring bankruptcy.

Creditors recognize that individuals who enter into a debt consolidation program are making a good faith effort to repay their financial obligations.

Creditors are more willing to work with clients by extending favorable terms to avoid the expense of turning these accounts over to a collection agency.