What is Debt Consolidation?
Debt Consolidation is the process of combining multiple debts into one and can be done in a variety of ways. On a Debt Management Plan, your unsecured debts are combined so that you only have to make one monthly payment to the Debt Management Company and they will disburse your payment out to each of your creditors individually. Another way to achieve debt consolidation is by taking out a Consolidation Loan which requires approval from a lender and may not always be possible.
How can Debt Consolidation help me get out of debt?
Enrolling in a Debt Management/Debt Consolidation Plan will typically lower your interest rates and monthly payments making your debt more affordable to pay back. Receiving lower interest rates also means that more of your monthly payments will be applied towards your principle balances and not the finance charges giving you a shorter payoff term.
What kind of debt can Debt Reduction Services help consolidate?
We can help you with most forms of unsecured debt including Credit Cards, Collection Debt, Medical Debt, Unsecured Personal Loans, Payday Loans and Repossessions.
Are there certain creditors that Debt Reduction Services work with?
We are able to work with almost all major creditors but if you have an account with a creditor that does not work with us you will be informed of that during your free consultation.
What will happen to my credit cards once I enroll into a Debt Consolidation Plan?
Upon enrolling into our Debt Consolidation Plan, your credit card accounts will have to be closed from further charging.
What are the fees for your Debt Consolidation Plan?
We charge a minimal one-time enrollment fee to join the program and process your paperwork. We also charge a monthly maintenance fee which gets included into your monthly payment but will never be higher than $50.00 per month. The amounts of our fees vary from state to state and depend on the amount of debt you have. This information will be discussed with you during your free consultation. There is no fee for our credit counseling session, which comes before enrollment into a debt consolidation plan.
How will Debt Consolidation affect my credit score?
Going on a Debt Management/Debt Consolidation Plan is a neutral mark on your credit score. Debt Reduction Services does not report anything to any of the credit bureaus however in some cases your creditors may place a temporary notation stating you are participating in a Debt Management Plan. This notation should be removed once you are no longer enrolled.
If I were to enroll in a Debt Consolidation Plan how long will it take to pay off my debt?
The exact term of your Debt Consolidation Plan is contingent upon a variety of factors including who your creditors are, balances, monthly payments and Interest rates but the maximum length of time would be 60 months.
If I sign up for a Debt Consolidation Plan am I entering a contract with Debt Reduction Services Inc?
No, you are not entering into a contract; you are entering into an agreement. The difference is that by entering into this agreement, you are not locked into anything. You have the freedom to pay in full early without any cost or penalty from us. If your financial situation changes and you can no longer afford to stay with the program, you have the ability to discontinue without any cost or penalty from us.
Am I able to view my progress online if I become a Client?
Yes. Once you enroll in our Debt Management Plan you will be given access to your client portal where you can view your accounts, balances, and payments at your convenience.