How Settlement Works

Guide To Debt Help
Just answer a few simple questions, and we'll match you to a debt relief company that specializes in your type of debt!

Care One Credit Counselling
An industry leading debt management program provider pairing consumers with non-profit credit counseling agencies (CCAs).

How Debt Consolidation Works:

Technically, whenever you combine multiple debts into just one, you've "consolidated". Because the purpose of consolidating for most is to save money though, these multiple debts are usually carried with high interest, and the new (consolidation) loan is usually at a much lower interest rate.

For example, you may have 3 credit cards with a combined balance of $10,000, with each card charging 18% annual interest. If you got a new loan from the bank for $10,000 at a 10% interest rate, and used the money to pay off the credit card balances, you have effectively consolidated your debts.

While some people enjoy the additional convenience of not having to pay so many individual creditors each month, the real benefit of consolidating is the money saved on debt carried due to the lowered interest rates.

Finding Consolidation Help:

Finding a lender or a company to help with a new debt consolidation loan is a fairly simple process - traditional lenders (like the bank) will sometimes have specific programs designed for debt problems, but if not; they don't necessarily even have to know what the loan is for - you can simply apply for a line of credit.

There are other companies as well that specifically deal with debt consolidation loans, some of which also offer additional credit counselling services to clients.

If you're looking to consolidate, be sure to begin the process by comparing multiple companies to weight your options before you settle on one. Many have a free, no commitment application process that should give you an indication of potential savings.

Different companies or lending institutions will probably give you slightly different offers depending on their in-house criteria. The amount of money you make, your total debt load, and the total amount you want to be consolidated are large factors companies look at in determining interest rates; but just like a mortgage loan - you may save a couple of percentage points by shopping around.

After you have looked over all of you options, simply choose the arrangement that works best for you. Debt consolidation is a big decision so make sure to review the terms of service carefully before you finalize your decision.