The risk to the lender is reduced so the interest rate offered is lower.Sometimes, debt consolidation companies can discount the amount of the loan.National Debt Relief is ranked right at the top on a number of sites and articles that review debt consolidation companies.
Debt management, debt settlement, debt relief and debt negotiation are all bona fide plans for consolidating debt, but there are differences in the approach used to get a result.
Each one has a distinguishing feature that makes it an appropriate – or inappropriate – solution for your problem.
The process of debt consolidation involves taking out a new personal loan that combines, or consolidates, a number of outstanding debts.
The new loan is used to pay off the consolidated debts, leaving the individual consumer with only a single payment on the new loan.
So it’s important to understand what kinds of institutions provide debt consolidation services so you can find the right provider to work with to eliminate your debt.
The information below is designed to help you understand who can provide debt consolidation services for various types of debt.
Most debt consolidation companies that you find online when you just type “debt consolidation companies” into your favorite search engine are focused on helping people consolidate credit cards and other types of unsecured debts.
That includes credit cards, store cards, gas cards, unsecured personal loans included debt consolidation loans, medical bills and even in some cases, payday loans.
Keep in mind that in most cases, debts can only be consolidated with other similar types of debts.