Company consolidating debt
That's why it's important to get credit counseling as soon as you see the warning signs: Your income is too low to keep up with your debt or you're borrowing from one creditor to pay another."When you reach that point, you need to get some advice on what options are there for you, whether it's working on your budget, doing some kind of debt-consolidation loan, free advice from a credit counselor, debt settlement or bankruptcy," says Russell Graves, president of the Association of Credit Counseling Professionals.See if consolidating debt with a personal loan makes sense for you If it turns out debt settlement is your best option, the good news is that many creditors are now willing to negotiate, says Mary Jackey, spokeswoman for the Consumer Credit Counseling Services, based out of Columbus, Ohio.It shows that the full balance is still owed," Jackey says.Also, make sure that creditors stop calling and sending debt collection letters in exchange for your payment plan, she says.Debt consolidation loans aren't right for everyone.
Debt consolidation involves taking out new credit to pay off your debts and debt management is where you negotiate affordable payments with the companies you currently owe money to.
Don't wait until your account has been charged off, which generally happens when your payment is more than six months behind.