Your Debt Consolidation Plan

Written by Abby Luttrell
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How does debt consolidation work? The debt consolidation company doesn't give you a loan. Instead, a certified credit advisor will help you create your debt consolidation plan.

A Personal Plan For Your Finances

Your debt consolidation plan is completely tailored to your needs. Do you have high costs from the hospitalization of a loved one? Are you paying off a family vacation in Hawaii?

Maybe it's school loans. Or maybe you were out of work and the living expenses piled up. It happens to everyone.

Your debt consolidation plan will address your specific needs. Your credit advisor will look at your monthly income and your monthly bills and calculate the optimum monthly payment that you can make - for all loans outstanding. Then, as part of the credit counseling service, your advisor will contact your creditors to negotiate lower interest rates on your debt so that your monthly payments can come down. Your creditors are actually motivated to work out your debt management plan so that you can avoid bankruptcy and pay them back.

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