How Debt Consolidation Works

If you are facing rising debts and are concerned that you cannot pay them in a timely fashion, debt consolidation might be a good option for you to consider. With so many debt consolidators offering their services, it can be difficult to find the right one. Fortunately, DebtBudgets.com partners with some of the most respected members of the debt-consolidation industry and brings the consolidation process to you. This allows you to focus on your budget for debt consolidation and saving your money rather than worrying about how to pay your monthly bills. Here's how the process works:

1. Assess your financial status: You know whether you're in debt. Are creditors calling you? Are you unable to make minimum monthly payments? Are you choosing between paying bills and feeding your family? If you feel overwhelmed by debt, you've come to the right place. By consolidating your debts, you are taking several debts from multiple creditors and transforming them into one loan from one lender. You'll have just one payment to make each month, and will have satisfied creditors in the process.
2. Fill out the informational questionnaire: Fill out the DebtBudgets.com questionnaire, which asks for basic information such as your contact information and an estimation of how much debt you need to consolidate. This free, easy service puts you in contact with debt-consolidation professionals.
3. Debt consolidation specialists contact you: Depending on the information you provided, one, or a group of debt consolidation specialists will contact you. At this point, you can ask questions about the process and learn about the options available to you. If you want to proceed, you can fill out an application with as many consolidators as you want.
4. Your application(s) is/are processed: You provide prospective consolidators with information such as which creditors you owe and how much, and other personal information that can give the consolidators more information about your credit history. Your application is then processed. This can take as little as a few hours or as much as a few days, depending on your situation.
5. Consolidators present you with loan proposals: You will be presented with proposals for your consolidation loan. This is a personalized presentation and reflects your debts, your ability to repay a loan and your credit history. Review the proposals and ask questions. Do you understand the interest rates? The repayment process? How long will it take to repay your new loan? If you have more than one proposal, carefully review each and determine which one is the most advantageous for you.
6. Select your consolidator: Once you have decided on a consolidation program, your new loan is processed. Your consolidator will repay the creditors outlined in the proposal. Continue to make payments until your consolidator notifies you that your new loan has been funded. Your consolidator will notify you when everything is complete.
7. Your debt is consolidated! Your creditors have been paid and now you have just one loan to pay each month. Be sure to pay your loan on time and manage your money so you do not go into more debt. Enjoy the freedom of just one monthly payment!