1. If you spend more than 50% of your credit limit every month, this indicates to the Credit Bureau that you do NOT have enough cash on hand to meet your monthly expenses. This will identify you as a high credit risk and will actually reduce your credit score by 60 - 70 points overnight (Fair
2. If you miss 1 or 2 payments on your credit card debt, the issuing company will skyrocket your interest rate to a whopping 27% -
3. Out of a random sample of 3 million American consumers (included in Experian's National Score Index), 51% of them have at least 2 credit cards and 14% of them have 10 or more credit cards.
Is there such a
thing as truly "free" bill consolidation?
The answer to this question depends on what you mean by
“free.” If by free, you mean that you, the consumer, do not have
to pay fees on top of making your debt payments, then yes, there
is free bill consolidation. However, if by free you mean that
the company handling the matter for you does not get paid, then
no, such a service does not exist.
Video: Many do not understand basic
How do consolidation services get paid if they don’t
charge me fees?
The key to this service is that consolidation services deal
with your creditors as a group, and that they provide a third
party to handle your debts. Creditors are always happy to have
additional parties involved, especially if the third party has
money that the creditor may be able to get.
Some companies may make the consolidation loan themselves.
They negotiate lump sum payments with the creditors which are
less than the full amount due. You, however, will normally still
pay the full amount. The difference between what you owe and
what your creditors is the payment the bill consolidator
receives. Since you don’t pay any extra fees the service you
receive is effectively free.
Other companies may guarantee your payments to creditors in
exchange for a reduction in principal, or interest, or both. The
consolidator makes the reduced payments to the creditor and
collects the full payment from you (but a single payment made
each month, not a whole bunch of payments at different times).
The difference is the pay the consolidator receives. Again, the
consolidator is paid from the savings they generate, and you still pay only what you owe.
Can’t I do the negotiations myself and get the
Theoretically you could do that, but as a practical matter
you haven’t been able to do that, and the creditors have no
reason to believe that you will be able to do so now. Remember,
it’s the presence of a third party ready, willing and able to do
what you haven’t been doing (making predictable, on time
payments) that gives the creditors incentive to compromise on
the amount owed.
Video: How to get a debt consolidation loan
Are free consolidators always a better option than
those who are paid a fee?
In deciding what form of consolidation, and what
consolidator, to use, you need to do a cost/benefit analysis.
Find out which service will cost you the least after considering
all costs: debt service and/or fees to the service. Then check
online and with the
Better Business Bureau to make certain the service is also reputable. You have to
consider that your time has value as well. If the cost of two
services is about the same, you should check to see which one
has higher customer satisfaction, requires the least continuing
input from you, and enjoys the best reputation in the industry
and among customers.
Make a start right now by filling out the form on this page
or calling the toll-free number to get information on bill
Here are some non-profit services:
Bill Consolidation Direct - 541-420-2531
Bill Consolidation Care - 800-964-0445
Bill Consolidation - 877-994-0998
Cheap Bill Consolidation - 800-355-5486
Consumer Debt Solutions - 866-231-5668
New Life Debt Relief - 888-269-0888
First Choice Debt Relief - 877-956-1500
Christian Debt Consolidators - 866-958-3328
Debt Consolidation Service - 888-252-2987
DebtShield - 866-902-5956
Aegis Debt Consolidation - 203-438-7275
DebtAmerica Relief - 800-681-7157
KeyDebt Services - 800-370-8918
Credit Solutions - 800-409-2389