Frequently Asked Questions About Our Non Profit, Unsecured Debt Consolidation Program
Have some questions about debt consolidation? Are you thinking of getting a debt consolidation loan but are unsure about how to go about it? Need a good debt consolidation solution, but not sure where to start? Let The Debt Consolidation Group answer your questions with our handy Frequently Asked Questions section!
Frequently Asked Questions
1. What is a Debt Consolidation Program?
2. How does The Debt Consolidation Group work with you?
3. Why do creditors agree to reduced interest rates and lower monthly payments?
4. Why is The Debt Consolidation Group Program your best option?
5. Can't I just keep paying off my creditors on my own?
6. Will debt consolidation affect my credit rating?
7. How much will it cost me to be on The Debt Consolidation Group Program?
8. Is there any penalty for paying off my debts early under the Program?
9. How do I know if I qualify for your Program?
10. What is unsecured debt?
1. What is a Debt Consolidation Program? (Back to Top)
When you consolidate debt, you are combining all of your unsecured monthly bills into one monthly payment. This type of debt consolidation program does not loan you money. Instead, our trained staff works with you and your creditors to lower your overall interest rate, monthly payments, and the amount of time it takes to pay off your debt. In general, you agree to pay your debt in full without incurring any more debt on the credit cards or other unsecured lines of credit that are subject to the debt consolidation agreement. In exchange, your creditors agree to waive any interest charges or late fees.
2. How does The Debt Consolidation Group work with you? (Back to Top)
A professional advisor will contact you after reviewing the information you submit to confirm your outstanding debts. (Click here if you are ready to enter your information.) Your free debt consolidation advisor will analyze your debt and design a payment plan that will significantly lower the interest rate you pay your creditors and the length of time it will take to pay off your debts in full. If you decide to sign up, you will no longer pay your creditors directly. Instead your new, consolidated monthly payments will be automatically debited from your checking account. That payment will be dispersed to your creditors each month. You won't have to worry about missing a payment or incurring late fees.
3. Why do creditors agree to reduced interest rates and lower monthly payments? (Back to Top)
Creditors agree to lower your monthly payment when you are working through a consolidation company because you are, in fact, trying to pay your debts. Your creditors lose money if you default on your loan or file bankruptcy. If they compromise and accept lower interest, it is much more likely that they will be able to collect more of what is owed. The Debt Consolidation Group works with a non-profit debt consolidation company called Trinity. Trinity has an excellent relationship with creditors and because of that relationship, is able to work out an easily affordable plan.
4. Why is The Debt Consolidation Group Program the best option for non-profit debt consolidation? (Back to Top)
The Debt Consolidation Group Program has a less negative effect on your credit history than a Debt Settlement or Bankruptcy. And unlike taking out a Debt Consolidation Loan, you do not incur additional secured debt that could jeopardize such assets as your home.
5. Can't I just keep paying off my creditors on my own? (Back to Top)
If you keep paying just the minimum amount to your creditors at the current interest rate, it will take you much longer than if you paid off your debt through The Debt Consolidation Group Program. A $10,000 debt usually takes 32 years and $24,500 to pay off, if you are paying the monthly minimum of 2.5% of the balance at an average interest rate of 18.5%. Because we may be able to reduce your interest rates, stop over the limit fees, and so on, it will take a lot less time to pay off your debt through us. Chances are, in the past, all your debt payments have just gone to pay off interest. You probably haven't even touched the balance! On average, The Debt Consolidation Group clients pay off their debts in 3 to 5 years, depending on individual circumstances.
6. Will debt and bill consolidation affect my credit rating? (Back to Top)
Creditors usually view debt and bill consolidation quite positively as a good faith effort to repay your debts. For that reason, it can actually improve a damaged credit rating.
Banks judge your credit in two ways: Your payment history and your debt to income ratio. If you are current with your payment, right now you have a great payment history. Your problem is that you are a little over-extended. By consolidating your bills, we will keep your payment history right where it is, and by reducing the interest rates the banks are charging you, more of your money will go towards your balances. This will bring your debt to income ratio down in line to exactly what the banks are looking for.
If you are behind in your payments, you are right now considered to be a slow pay on your credit report. By consolidating your debts, we will be able to re-age your accounts back to a current status after only three payments into our program. This will show the bank that you are back on track with your finances.
7. How much will it cost me to be on The Debt Consolidation Group Program? (Back to Top)
The consultation is FREE to everyone. If you are comfortable with our recommendations, there is a one-time organization fee. There is also a small monthly service charge to cover the costs of handling accounts.
8. Is there any penalty for paying off my debts early under the Program? (Back to Top)
No. If you come into funds and want to pay off your balance in full, simply give us 30 days notice.
9. How do I know if I qualify for your unsecured debt consolidation Program? (Back to Top)
You automatically qualify if you are carrying at least $5,000 in unsecured debt. If you are serious about getting back on the right financial track, click here for a FREE debt analysis.
10. What is unsecured debt? (Back to Top)
Unsecured debts are debts such as credit cards, personal loans, lines of credit, store cards, and medical bills that are not secured by collateral. Mortgages and car loans are not considered unsecured debt.
Ready to become debt free? Then click here for a FREE, No Obligation Debt Analysis!
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