A debt consolidation program differs from a debt consolidation loan in that the former is a service involving the combination of multiple loans into a single payment while the latter is a new loan that is taken out to pay already existing debts. Under the conditions of a debt consolidation plan, you will make payments to your credit service counselor, and they will distribute your payment to satisfy your creditors. Unlike taking on new debt with a consolidation loan, a debt consolidation program is designed to get you out of debt without incurring any new debt. It is important to understand debt consolidation plans and how they work.
Components of a Debt Consolidation Program
Through debt consolidation, you can set up a plan that is designed to systematically end your debt within three to five years. Aspects you should consider include:
- Begin with counseling — to learn more about your debt and your spending habits that contributed to your debt levels.
- Program fees — will boost the total amount you owe your creditors.
- Unsecured loans — are the only types of debt that is eligible under debt consolidation programs.
- Keep your accounts — with a consolidation plan that incurs no new debt.
If you are finding yourself with too much month at the end of your paycheck, you might want to talk to our experts at Americor Financial to discuss your consolidation options.
Learn More About Debt Consolidation Programs
Debt consolidation programs represent a chance for over stretched consumers to reclaim their finances by grouping their debts with one consolidating loan, which lowers the stresses associated with getting buried under a myriad of different bills. Managing your finances means taking responsibility for your outstanding debts, so If you are looking for help with your monthly bills, you need to reach out to our expert team at Americor Financial for advice on how best to manage your finances.