Debt Management Services

Are You Considering Debt Reduction?

Of course you want to reduce and eliminate your debt, but how exactly does debt reduction work?

A debt reduction company will contact your creditors and negotiate a reduction on your debts. Depending on the creditor, you can potentially have anywhere from 30-70% of your balance reduced. Once a debt settlement is agreed upon, you’ll pay back a smaller amount of money.

Thinking of Applying for Debt Reduction? Call us first!

When the stakes are high, you need to know what you’re getting into, and this kind of short-term decision can bring long-term consequences. You don’t have to try to reduce your debts on your own. Explore other all your debt relief options before selecting debt reduction, and give us a call at 1-888-881-3619. Our certified credit counselors can review your budget, discuss your debt problems and find a personalized solution that fits your needs.

Even if debt reduction sounds too good to be true, there are some pitfalls:

• There are no guarantees your creditors will accept the debt reduction company’s offer.
• It may take months, even years, before your creditors agree to a settlement.
• If you stop making payments, your creditors may add late fees and interest to your balance, increasing what you owe causing the credit card debt to double or triple by the time you reach a settlement.
• Debt reduction can have negative effects on your credit score.

If debt reduction proves to be the best choice for you, Consolidated Credit also has a Financial Resources Department that refers consumers to reputable, well-established debt settlement companies.

How to Avoid Scams

Some debt reduction companies make questionable claims that are designed to entice the consumer. While these claims sound amazing, it could also be a debt reduction scam. Stay away from companies that:

• Require you to pay fees before providing a service
• Make guarantees that they can settle your debt for less than what you owe
• Promise to put a stop to calls from creditors
• Cite government programs as revolutionary new ways of dealing with debt

Any debt reduction company you sign up for should explain its fees upfront and advise the terms and conditions of their refund policy if they are unable to settle your debts. They should tell you how much you need to save before they can make an offer to your creditors. If they do ask you to stop making payments so you can save for your settlement, they should explain what the negative consequences are to not paying your bills such as:

• Damage to your credit score
• Additional fees and interest that can be charged
• Your creditors do have the right to sue you or continue with the debt collection process.

Before you decide to move forward with a debt reduction plan, give us a call. It’s free, and we’ll help you make the right decision to reduce and eliminate your debt effectively. 1-888-881-3619