If you are struggling to keep up with your debt payments, you may want to consider getting help with debt consolidation. There are nonprofit agencies that help clients lower their interest rates, eliminate late fees, and combine your debts into one easy, monthly payment.

How it works

Financial service nonprofit organizations, such as Consumer Credit Counseling Service will work with your creditors to reduce your interest charges, reduce payments, and bring accounts current for those who choose to do a debt consolidation. The agency will combine your debts into one payment so that when you pay them, they send the money onto the different creditors. Many debt consolidation companies are paid from contributions from the creditors and charge a small fee. It takes most clients about 36-60 months to repay their debts.

Your credit history

Getting a debt consolidation loan shouldn’t affect your credit history right away. If you start to make your payments in full to the credit counseling service, you should gradually pay down your debt and improve your credit score. Chat with a counselor today!

What it could mean for you

Debt consolidation for the average client means that you’d be trimming your payments to creditors from 7 years to 5 years and reducing your payments from $650 to as low as $525. Are you ready to begin free credit counseling?

Time to change your behavior

Getting a debt consolidation plan is the perfect time to change your behavior and stop spending and start saving.  

• Don’t apply for or use any new credit cards
• Don’t get any new loans
• Take extra money in your budget and pay down other high-interest loans