Bad Credit and Debt Consolidation - California
Do you have bad credit but are ready to take the next step in getting relief from your credit card debts? You may be interested in finding out how much you can potentially save by consolidating your debts. Many consumers in California, and nationwide, have found much-needed help in reducing their credit card debts, and unsecured debts (for instance, medical bills, department store charges, or utilities), with debt consolidation through a credit counseling agency.
What debt consolidation typically involves is combining your high-interest credit card debts into one, more manageable, and more structured payment plan. The goal is, with a more affordable and more structured payment plan, you can reduce your debts sooner than if you only continued to pay the minimum amount on your credit cards at higher interest rates. Even though enrollment in a debt consolidation or debt management program may be "noted" on your credit report, debt consolidation does not have near as severe or long-lasting an impact on one's credit as a personal bankruptcy. In fact, for consumers who have fallen months behind on credit card payments and defaulted on the terms of their cardholder agreements, a debt consolidation program which helps individuals pay down debts on time month after month may actually help to improve one's credit standing, Why is this? Because two of the factors that play a major part in credit ratings are on-time payment status, and total debt load. So, when consumers make consistent payments month after month and reduce their total debt (as a percentage of available credit) credit ratings can indeed be improved.
To explore your debt relief options, request a free debt relief analysis and savings estimate today.
Understanding Credit Card Debt Consolidation
Debt consolidation, or a debt management plan (DMP), typically involves taking your high-interest credit card and unsecured debts and combining them into one, more manageable, and more structured repayment plan made to a credit counseling agency. This process is facilitated by credit counselors who, after determining your financial situation, will typically speak to your individual creditors (on your behalf) requesting reduced interest rates and the waiving of late fees and/or penalties. Creditors that agree to those proposals are then placed in the debt management plan.
Keep in mind that while it is the credit counseling agency's responsibility to negotiate with your creditors, it is up to you to make sure that you have the funds available in the account set up by your credit counselor. Many reputable debt consolidation companies can even provide you with a due date (when they take out the funds from your account) that takes into consideration when you get paid or have the funds available.
If you want to learn how debt consolidation can help manage your debts, request a free debt relief analysis and savings estimate.
Choosing A Debt Consolidation Company
When you are ready to take the next step in reducing your debts through debt consolidation, it is wise to understand how the program typically works. It is also very important to know how much savings you can potentially get, every month, by consolidation. In general, the amount of savings depends on the amount of your debts, the current interest rates that you are paying, and any late fees or penalties you have.
The bottom line is, if you are truly struggling with credit card debts, take heart because there are a variety of debt relief options available. No one debt solution is appropriate for every consumer. To find out if there is a debt option that can help meet your needs, start by answering a few, simple questions and requesting a free debt relief analysis and savings estimate.