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Our Debt Consultants will be in touch with your quote as soon as they receive your submission.

Guide to Debt Consolidation Companies

Debt consolidation companies offer people an opportunity to avoid the shame and damaged credit of bankruptcy through negotiations with creditors and collectors. Most creditors also want to avoid borrower bankruptcies since it means they will usually have to settle for a significant loss. They know through experience that an equitable agreement is in their best interests. So they are willing to talk with debt consolidation companies.

We at the www.1st-debt.com website (http://www.1st-debt.com) offer distressed borrowers free online services to help them get out of debt in four to six years.

How Debt Consolidation Companies work

When borrowers approach debt consolidation companies, a credit counselor will assess their financial situation and craft the best approach for solving the client�s debt problems. If debt consolidation is seen as the best solution, the counselor will begin negotiations with the borrower�s creditors to consolidate all the loans into a single monthly payment plan. The counselor will also seek to help the borrower in the following ways:

No more harassment (debt consolidation companies handle collection calls)
Reduced interest rates
Reduced monthly payments
Waive or lower late fees and penalties
Avoid bankruptcy filing
Eliminate debt in four to six years instead of the usual 20 to 40 year repayment
Repair credit

In addition to debt consolidation, the counselor may also suggest other courses of action including a debt settlement, bill consolidation , or a debt management loan. In a settlement, debt consolidation companies strike an agreement between the lender or collection agency, and the borrower that reduces the remaining balance on the loans. The borrower agrees to resume payments and the creditor stops collection action.

Debt consolidation companies usually charge a fee for negotiation with creditors and collection agencies, and a separate fee to handle monthly payments to creditors. In the latter case, the borrower makes a single monthly payment and the debt management company handles the distribution to creditors. Reputable companies should be accredited by organizations like the Better Business Bureau (BBB) and the International Association of Professional Debt Arbitrators (IAPDA). The IAPDA trains and certifies consultants in the area of debt settlement. To receive IAPDA�s �D&B Listed� certification, a company additionally must:

Have active operations
Not be in bankruptcy
Have a good credit report

www.1st-debt.com

We at the www.1st-debt.com website provide struggling debtors with a free counseling service that analyzes their financial situation. The site also offers a free credit tools that help you evaluate your debt, analyze your credit and bills, and calculate your debt-to-income. The Education Center at the site offers informational articles on bankruptcy, credit scoring, credit repair, mortgages, refinancing and other helpful topics. Using the www.1st-debt.com's free referral service, you can connect with reputable, certified credit counselors in your area, and there are also links for credit report and home equity debt services. If you have been unable to handle your debt payments and need relief, visit us today at the www.1st-debt.com website (http://www.1st-debt.com).