When you find yourself in financial hot water the first thing we tend to do is scrabble around for funds, or even loan from family and friends. Debt consolidators will tell you that gathering your debt into one account and undergoing debt review is your best option...and they would be right. Â The debt consolidation process is a fairly simple one if you are assisted by professional and qualified debt consolidators.
Many do not know what the process involves which debt consolidators help create; perhaps this can assist you in better understanding what to expect:
When undergoing debt consolidation or debt review it is important to remember that this will be noted on your credit record. You will not be able to apply for credit or open accounts during the period you are still paying your debt consolidators.
Only once your debt has been settled by way of debt consolidators, your name will be cleared and you will be able to open accounts and apply for credit once more.
If you are looking to clear your credit record of avoid being black listed then it's definitely time to consider your options when it comes to debt consolidators and debt review.
Many do not know what the process involves which debt consolidators help create; perhaps this can assist you in better understanding what to expect:
- When making contact with professional debt consolidators you will sit down with the debt counsellor and go over all your current debt and expenses.
- If you are over indebted and found to be unable to afford your monthly expenses, then you will apply for debt review. You will need to be permanently employed to do this however.
- Your credit report will be drawn and you will be advised on how to go about clearing your name and having a long term healthy credit record.
- The debt counsellor will then approach each of your creditors and negotiate a settlement package. Counsellors usually have great bargaining skills and will obtain cheaper pay back rates and reduced interest amounts on your behalf.
- When all settlement amounts are agreed on, your debt will be transferred into one expense account which you will need to pay off, to your debt counsellor, in the form of fixed monthly payments.
When undergoing debt consolidation or debt review it is important to remember that this will be noted on your credit record. You will not be able to apply for credit or open accounts during the period you are still paying your debt consolidators.
Only once your debt has been settled by way of debt consolidators, your name will be cleared and you will be able to open accounts and apply for credit once more.
If you are looking to clear your credit record of avoid being black listed then it's definitely time to consider your options when it comes to debt consolidators and debt review.
SHARE
