My Hero: the Debt Consolidation Firm (cont.)
Contributed by Caryn e Zent
How exactly do debt consolidation firms work?
You will first be asked to fill out an application and list creditor information. You need to have current statements in front of you. If this is done online, you will fill out the form. If you visit a company in person, you will have assistance or they will fill the form out for you. Once this is completed, you will be given an estimate of what you will pay each month. This of course depends upon the negotiation with creditors.
Creditors generally are very cooperative because you are making an effort to pay them. Your debt counselor will then fax or send letters to each creditor and attempt to make a settlement regarding late fees, interest, and reduced payment options. Once this is complete, you will be notified whether your plan was accepted. Local firms may have you drop off a money order each month, and online firms will usually use automatic withdrawals.
If you stay on task and make the payment every single month, you will begin to see the result. Sites to try: www.careonecredit.com, www.lowermybills.com, www.familycredithelp.com. There are many resources out there to help you get debt free.
