Debt Consolidation FAQ
Is credit card debt consolidation a loan?
No, credit card debt consolidation is not a loan. It is a repayment plan negotiated between you and your creditors. But you can get a loan for purposes of consolidating your debt. But this will not be the same as debt consolidation.
What is the difference between debt consolidation and debt settlement?
Debt settlement and debt consolidation are similar in that they both pay off your current creditors and simplify your unsecured debt into one monthly payment. The key difference is that debt consolidation pays off your current credit card debt in full. With debt settlement, creditors are negotiated with to get a lower balance. This will be helpful for severely charged off accounts. If you can afford, debt consolidation is a much better financial option for your credit.
Can the debtor’s wages be garnished to repay a credit card debt?
It depends on whether the state where the person is working will allow personal wage garnishment. All states do not allow wage garnishing. However, the wages can be garnished only after a creditor gets a judgment from the court.
How long will it take you to pay off your debt consolidation?
The length of the debt payment depends mainly on two factors, namely the money you owe and the monthly payment you can afford. The higher the debt, the longer will be the payoff period. The more money you put towards your debt each month, the more quickly you will be able to pay off your debt consolidation.
How do you choose a debt consolidation company?
You have to shop around and look closely at what is being offered to you as debt consolidation service by each company. And choose the best debt consolidation service providing company.
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Comment by Debt Consolidation on 1 August 2009:
I like the all the FAQs here, it conveys right solution for the debt troubled. Many other people struggling with debts and need to regain control of their finance. I think Debt consolidation would be the perfect solution for the people who need help for their debts.Debt consolidation is the most economical way to get out of debt, as instead of many payments to various creditors, the debtor will make only one.