Jun 11
Debt Consolidation FAQ
Credit card debt consolidation is a service which allows one to make just one payment to the consolidator, instead of numerous smaller payments to many credit cards. This is probably the most effective way to reduce and restructure one’s credit card debt.
Is credit card debt consolidation a loan?
No, credit card debt consolidation is not a loan. It is a repayment plan negotiated between you and your creditors. But you can get a loan for purposes of consolidating your debt. But this will not be the same as debt consolidation.
What is the difference between debt consolidation and debt settlement?
Debt settlement and debt consolidation are similar in that they both pay off your current creditors and simplify your unsecured debt into one monthly payment. The key difference is that debt consolidation pays off your current credit card debt in full. With debt settlement, creditors are negotiated with to get a lower balance. This will be helpful for severely charged off accounts. If you can afford, debt consolidation is a much better financial option for your credit.
Can the debtor’s wages be garnished to repay a credit card debt?
It depends on whether the state where the person is working will allow personal wage garnishment. All states do not allow wage garnishing. However, the wages can be garnished only after a creditor gets a judgment from the court.
How long will it take you to pay off your debt consolidation?
The length of the debt payment depends mainly on two factors, namely the money you owe and the monthly payment you can afford. The higher the debt, the longer will be the payoff period. The more money you put towards your debt each month, the more quickly you will be able to pay off your debt consolidation.
How do you choose a debt consolidation company?
You have to shop around and look closely at what is being offered to you as debt consolidation service by each company. And choose the best debt consolidation service providing company.
By: John Chase
About the Author:
Credit card debt consolidation is a service which allows one to make just one payment to the consolidator, instead of numerous smaller payments to many credit cards. This is probably the most effective way to reduce and restructure one’s credit card debt.
Is credit card debt consolidation a loan?
No, credit card debt consolidation is not a loan. It is a repayment plan negotiated between you and your creditors. But you can get a loan for purposes of consolidating your debt. But this will not be the same as debt consolidation.
What is the difference between debt consolidation and debt settlement?
Debt settlement and debt consolidation are similar in that they both pay off your current creditors and simplify your unsecured debt into one monthly payment. The key difference is that debt consolidation pays off your current credit card debt in full. With debt settlement, creditors are negotiated with to get a lower balance. This will be helpful for severely charged off accounts. If you can afford, debt consolidation is a much better financial option for your credit.
Can the debtor’s wages be garnished to repay a credit card debt?
It depends on whether the state where the person is working will allow personal wage garnishment. All states do not allow wage garnishing. However, the wages can be garnished only after a creditor gets a judgment from the court.
How long will it take you to pay off your debt consolidation?
The length of the debt payment depends mainly on two factors, namely the money you owe and the monthly payment you can afford. The higher the debt, the longer will be the payoff period. The more money you put towards your debt each month, the more quickly you will be able to pay off your debt consolidation.
How do you choose a debt consolidation company?
You have to shop around and look closely at what is being offered to you as debt consolidation service by each company. And choose the best debt consolidation service providing company.
By: John Chase
About the Author:
John is a DJ and radio producer by trade who has performed in the U.S., Russia, Turkey, Macedonia, Serbia & Kosovo. Through a strange twist of fate he found himself working in the debt consolidation and debt settlement field in Chicago. John has a great interest in charity work as well.
His other interests include fitness, science & technology, modern medicine, poltics, world events and pop culture.