Debt consolidation help

Debt consolidation help is available to individuals who are unable to keep up with their current minimum payments. The average household consumer debt in this country is $5000. Some debtors are able to maintain payments and keep a good credit rating. However, millions of other people feel that bankruptcy is their only alternative. Bankruptcy is a legal process that discharges or erases a consumer?s debt. In other words, they are never obligated to repay credit cards, consumer loans, and so forth. As attractive as bankruptcy may appear, this process ruins a consumer?s credit. In fact, a bankruptcy remains on the credit report for ten years, and may prevent a person from purchasing a home or car.

Before making a beeline to a bankruptcy lawyer, those going through financial hardship should seek debt consolidation help from one of several agencies that specialize in helping people improve their credit. Debt consolidation help agencies are located all across the country. Perhaps you have seen a debt management company advertise their service with commercials. The advantage of seeking debt consolidation help is that they help debtors become debt free within five years.

Agencies that offer debt consolidation help work directly with a consumer's creditors to get their interest rates reduced. Debt management counseling will consolidate debt. Instead of the debtor making individuals payments to all their creditors, they send one payment to the debt management agency. This single payment is applied to the entire debt amount. Many debt management companies are non-profit, nor do they charge a fee for their services. To have bills consolidated, consumers are not required to own a home or have their credit check. The mission of these agencies is to help consumers eliminate their debt and avoid bankruptcy. In less than five years, a consumer's debt will eliminated and their credit rating improved.

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