Debt Consolidation Companies

Written by Abby Luttrell
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If you're in debt, you may be experiencing tremendous stress over paying your bills. If you are one month or more behind in a payment, you may get notices from creditors, you may be getting phone calls day and night, and you may even have had some accounts turned over to collection agencies. You may want to stop your creditors from harassing you but you may not know that there are nonprofit organizations to help you.

These organizations are debt consolidation companies. They work exclusively with approved non-profit credit counseling agencies to get the best possible rate of interest for you. This translates into a much lower monthly payment.

Reduce Your Interest Rates

A debt consolidation company will negotiate with your creditors to get them to reduce the interest rate on your loan. This is vitally important, because most of your monthly payment is interest. Once the interest rate is cut in half or better, you'll have a chance to completely repay the loan.

Even better, debt consolidation companies will consolidate all your payments each month into one payment. For example, if you were once paying $700 a month for all your credit cards combined, you can reduce your interest rate by as much as half and be paying $350 a month. It's important to get debt counseling from a certified credit advisor at an approved non-profit credit counseling agency.

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