Debt Consolidation Program
This type of Program may offer you some of these benefits:
- Help reduce or stop Collection Calls with an agreement*
- May Reduce or Eliminate Interest Rates*
- Will not affect your 3 digit FICO credit score as long as you remain current*
- Consolidate all of your unsecured debts into one monthly payment*
* All programs are unique and benefits vary
This type of program is administered by a 3rd party, licensed debt management service provider who has several decades worth of experience in the debt management and financial literacy fields and has helped thousands of consumers.
Debt Consolidation is a commonly used term to describe several different debt relief plans that will allow you to combine the qualifying unsecured debt payments into one monthly payment that is affordable for you and your budget. These types of programs are usually offered with lower interest rates, and reduced monthly fees, to allow you to pay more on the principle each month rather than so much in interest and fees to the creditors.
By utilizing a debt consolidation program, you will be paying your creditors an agreed upon monthly payment that reflects on your normal monthly creditor statements. This will help get you on a fixed monthly budget with the creditors and may even reduce your monthly payment obligation. There is no penalty for getting out of debt faster, it will only help save you interest and fees in the long run.
Debt Relief Programs Can Help
UmbrellaDEBT representatives have decades worth of experience in helping consumers rid themselves of heavy debt loads. The debt relief service providers we work with have helped tens of thousands of people to regain financial freedom. Debt and credit counseling, debt management programs, and debt consolidation are common names for this type of program.
So Which Debt Relief Program is the Best?
In order to figure out which plan is best for you, it will really depend on your overall financial situation. Such as what kind of debt you have, how much debt you have, if you have a financial hardship and your ability to repay the debt you owe to the creditors.
When you contact us, our professionals at UmbrellaDEBT will work with you to assess your personal financial situation. Then we will help explain the many different debt relief options that you may have available, so that you can make the most informed decision on how to get out of debt.
What Kind of Debt Qualifies for Debt Relief Programs?
With the various different Debt Relief programs that consumers have available to them, we are able to help guide clients with credit card debts, personal unsecured loans, medical bills, and collection accounts.
This program is basically for anything besides your house or car that is considered unsecured without a title or deed. Originally, creditors developed debt consolidation programs as a way to help their customers work through difficult times repaying their debts. Otherwise, consumers paying high interest on their own may struggle to ever pay off the debts they owe or be stuck paying for the next 30-40 years on credit cards without any help. In a debt management program, you will be making one monthly payment each month that is disbursed to your creditors on time in the amounts they have agreed to accept.
In return, you receive specific creditor benefits from each creditor that should help you get out of debt quicker!
Will My FICO Credit Score Go Down if I Use Debt Consolidation?
Simply participating in a debt management plan will not hurt your three digit credit score rating according to (FICO). If your credit score rating is good, it will remain in good standing as long as you remain current and on time with the creditors throughout the debt management program. If your credit is bad, behind on credit card payments and needs improvement, it could change as you begin this program and may become current again. Your credit report could improve from the past-due statuses if they are ever changed to current and on time status. Over time as you pay the debts down typically this is how consumers improve their credit worthiness. There is no credit approval done as this is not a loan of any type.
In this type of program, all of your specific qualifying unsecured debts can be put into one monthly payment that fits within the structured monthly budget, instead of having multiple debt payments that can fluctuate monthly. As long as you work within the creditors’ procedures and guidelines for people that are in need of credit counseling, you will be able to pay down your debt and should save money in interest. Once enrolled in this program consumers are typically asked to not get any new unsecured credit card debts until you have paid off the credit card debts in this program.
Will My Creditor Charge Interest?
When enrolled into a Debt Consolidation program, some creditors will eliminate interest charges all together for some specific hardship programs. Otherwise, most credit card companies will usually reduce your interest rate, on average, to somewhere between 7% and 9% until the debt is paid off (although individual results will vary depending on several different factors).
Who Qualifies for Debt Consolidation?
If you are struggling to afford your monthly credit card or collection payments, and have a desire to become debt free, then UmbrellaDEBT may be able to help you qualify for this type of program. The credit card companies and banks may also qualify for certain breaks when they work with consumers by proactively trying to work with them before they default into collection. In return, you may see a decrease to your monthly payments, and sometimes reduced substantially!
It doesn’t matter what your financial situation is, many can benefit from getting help on paying off these debts quicker if they have financial hardship. Avoiding bankruptcy, stop or reduce harassing creditor calls, and get help from one of our trained professional Debt Relief Counselors. Get on track to become Debt Free! We will work with you to help find the best program that fits within your monthly budget and will give you a light at the end of the tunnel!