Consumer Credit Debt Consolidation and Counseling is not a loan company. They are advisers, and will also contact all of your creditors for you to see what they can do of penalties and late charges knocked off of your balances in order to make the amount you owe less.
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One of the most effective ways for a borrower to reduce debts that have gotten out of control and get out of debt quickly is through consumer debt consolidation. While once hard to find, they are now easy to find on the internet as part of a broader offering of consumer credit counseling services. These services can be for profit meaning the service is offered as any other business and the agency will make a profit on the work it does for the borrower. There is also the non profit credit counseling agency. Either can do a very good job for the borrower and its far more important the results that they achieve for the borrower rather than if they are for profit or a non profit.
What make credit card debt so high to pay off are the exorbitant interest rates that credit card companies charge. The new legislation that has just passed the US Congress is in part designed to not only try and reduce this rate but to also let the borrower have a much better idea of how much interest they are actually paying. There are new disclosures on credit card statements which tell how long and how much one will pay by only making the minimum payment and a second disclosure showing how much is needed to pay off the debt in 36 months.
The first thing step taken in consumer debt consolidation online is to contact the credit card companies and work out a low interest debt consolidation. Just by lowering the rate the loan can be paid off much more rapidly. In many cases the credit card companies are also willing to take a lower principal amount. As a rule of thumb they will generally settle for about 60 cents on the dollar and depending on the circumstances, even less. There’s no question the way to get out of debt quickly is by using consumer debt counseling services and getting a low interest debt consolidation.
