Debt Consolidation 101

Before you get started on your debt consolidation quote, learn more about how the process works. We'll explain what debt consolidation is and whether it's right for you.

About Debt Consolidation

Also referred to as a debt management plan, debt consolidation has two basic forms: debt consolidation and debt negotiation (or debt settlement). On this page, we will discuss debt consolidation. When you apply for a debt consolidation quote and then subsequently sign up for services, you will deal with a debt consolidation company that has preset agreements with most creditors (mostly credit card companies, but also some collections and medical companies). Your debt consolidation quote is based on the rates your company has negotiated with your creditors according to a preset rate sheet. The consolidation company then gives you your new, lower payment based on these pre-negotiated rates. Almost always, this new payment is dramatically lower than what the company offers to the public, so your savings will be substantial.

Why Get a Debt Consolidation Quote

You might be wondering why you should get a free debt consolidation quote. Simply put, debt consolidation can save you money and a lot of hassle. Here are some of the main benefits of debt consolidation:

• Improve your credit score with a better debt-to-income ratio
• Bundle your many, high-interest debts into one convenient payment
• Reduce or eliminate interest and fees
• Lower your monthly payments by an average of 40-60%
• Reduce the total amount of your debt
• Get out of debt faster
• Stop creditors from harassing and threatening you