What is debt consolidation?
Debt Consolidation is a very popular strategy used by consumers to better manage their debt problems. It is use of a home equity loan where members move high-rate credit card balances to low rate home equity loans. By taking a credit card with an 18% interest rate and moving it to a home equity line with an 8 or 9% interest rate, a member could save thousands of dollars.
Debt consolidation is a process of restructuring your existing unsecured debt with your creditors. We negotiate with all of your creditors to obtain the lowest monthly obligation needed to satisfy all of your current accounts. Debt consolidation is not a loan, but a process to lower your current monthly payments and interest rates.
Debt consolidation is for people who have let debt get out of control and need assistance to get out of debt. They give up their credit cards and pay a third party to manage the payments to their creditors. If the provider is working with a not-for-profit organization, it is probably debt consolidation.
