The agency may also get the card companies to waive late fees or over-the-limit fees. Debt management programs usually take 3-5 years to eliminate debt.If you miss a payment, they can revoke whatever concessions were made on your interest rate and monthly payment.If you don’t plan to change your spending habits – i.e.you still plan to use your credit card for anything you want – then debt consolidation is not for you.
The loan is repaid in monthly installments at an interest rate you negotiate with the lender.
Nearly everyone losing the battle with debt has this conversation with themselves every month. It gives you a reachable goal to meet every month and eventually lets you breathe again financially.
You want to be responsible with your money and you want to step away from credit card dependence, you just need a plan. You will have to do some research and comparison, but the essence of debt consolidation can be summed up like this: If you can put that on your plate, yes, debt consolidation will work for you.
Instead, the nonprofit credit counseling agencies work with card companies to reduce the interest rate and lower the monthly payment to an affordable level for the consumer.
The consumer sends a monthly payment to the credit counseling agency, which then distributes the money to each creditor in an agreed upon amount.
Depending on the complexity of the process and the company's preference, finance managers can use Microsoft Excel spreadsheets, modules in corporate performance management or enterprise resource planning software suites, or specialty software for financial consolidation.