Question 1

What is debt consolidation?

Accepted Answer

Debt consolidation is the process of combining multiple debts, like credit card balances, personal loans, or medical bills, into one single loan or payment plan. The goal is to simplify payments and possibly lower the interest rate, , monthly payment, and/or overall costs.

Question 2

How does debt consolidation affect my credit?

Accepted Answer

Initially, consolidating your debts may have impact an individual’s credit score. However, if you manage the new loan responsibly and make timely payments, an individual’s creditworthiness may improve overtime. Individual results will vary.

Question 3

Can all types of debt be consolidated?

Accepted Answer

Not all debts qualify for consolidation through all providers. While unsecured debts like credit card balances, personal loans, and medical bills are often included, secured debts like mortgages or car loans typically aren’t eligible for consolidation through most programs.

Question 4

Are debt consolidation services free?

Accepted Answer

Services and solutions are typically provided on a performance-only basis meaning there are not typically upfront fees. Most providers of debt consolidation make it free to see if you qualify and how much you may qualify for. Then, typically there are zero upfront fees and furthermore, nothing paid until results are achieved offering a true performance-driven solution. It’s essential to be aware all fees and how they are earned before signing an agreement.

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