One of the key factors that have to be
considered while handling money is how to save it and how to
spend it. Usage of credit cards, over use of them and failure
of payment of debts leads to what is called the debt cycle..
Debt Consolidation Services work directly with
creditors to come up with the ideal payment plan for you.
Creditors get numerous benefits, such as:
• Reduce your payments by as much as 50%
• Consolidate your payments into one low monthly payment
• Eliminate late charges and other fees
• Eliminate or reduce your high interest rate
• Re-age your past due accounts to improve your credit
So how does the debt consolidation work?
card companies find a debtor who isn't prompt and regular in
his payments then a session is conducted where the debtor is
placed face to face with a finance counselor and the debtor
is given counseling on how to repay the debt.
Once the debtor aggress on a mutual consent the debt is
repaid. This is a win win situation where in the lender and
the debtor win in the end. The lender gets his money back
and the debtor is relieved of his debt.
But Repeated debt reports tarnish the image of the debtor.