Debt Consolidation – Is There A Way To Keep Any Of The Accounts
It is very possible to keep an account when you get a debt consolidation loan. In most cases, a debt consolidation company will give you just that: a loan. Therefore, after the experts at the company manage to settle your accounts, and bargain it down to however low they can, they will merely give you a loan. That loan will allow you to pay off your debts, and then you will only owe money to the debt consolidation company, but all of your accounts will remain open. Or, you can close them and start over clean if you want to. The only problem with closing and then reopening your accounts is that every time you open a new line of credit, it has a very small strike against your credit report.
Another possibility is that you could just not consolidate all of your debt. On occasion, there are consolidation companies that do just close all of your accounts at the same time as they settle them. This would occur when a company settles everything, which would mean that you'd only have to pay a small fraction of what you previously owed- possibly from forty to sixty percent. In that case, you could make a deal that not all of your debt is consolidated. However, this would probably not be that good of an idea, since that would kind of defeat the purpose of debt consolidation, in that you would have multiple monthly bills to pay. And the purpose of consolidation is, of course, to only have to pay one low, monthly bill, probably at a very low interest rate.
Finally, there is a third option. If you don't want to damage your credit by having to open new lines of credit (even though it is an extremely small penalty), and also don't want to pay multiple bills per month, you can have a free consultation with a counselor at your consolidation company. In most cases, companies will offer free counseling services before you make a decision. You might even try to get a free consultation with a bankruptcy lawyer. They'll normally give free consultations, as well, to prospective customers.
In a nutshell, by a thoroughly researching and then comparing several debt consolidation services, borrowers will be able to qualify and determine the agency that meet your specific financial situation, plus the cheaper interest rate the market is offering. For Instance, read our latest debt management company review: PriorityDebtSettlement Review.
However, it is advisable to work with a seasoned and reputable debt counselor before arrive to any conclusion, this way you will save time because of specialized advise and cash by obtaining the best results in a reduced period of time.
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