NDSU Extension Service - Ramsey County


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Debt Consolidation

Debt Consolidation

Many individuals have the mistaken idea that they need to have good credit in order to meet the criteria for a debt consolidation program. As a matter of fact, debt consolidation is a service and should not be mistaken as a loan. When you are trying to find out a reputable debt consolidation program, make sure you keep few things in mind.

What is debt consolidation? Debt consolidation is essential when a customer combine the minimum payments into one monthly compulsion. While you are entering into a debt consolidation program, you would have the ability to establish a draft for a date that they would prefer. For instance, if a person sets a minimum payment on the 2nd of each month, the creditors would be sent a proposal stating the new rate of interest and the minimum terms and payments needed for the debt consolidation program.

After that the proposal will be sent back to the debt consolidation company and the payments will then be disbursed to the creditors set on new terms and conditions as explained within the new set terms.

Does bad credit matter? Whether the credit score of the consumer is in the high 700s or lows in 400s, it does not really matter. When you are going through the debt consolidation quote, customers with bad credit would obtain the same exact quote that someone with the good credit would get.

A lower rate of interest, minimum payment and better break on the duration of payment would not be any different for anyone with bad or good credit. When you are looking for debt consolidation for bad credit, all of these programs do exist to each and every customer no matter what credit score he or she has.

When you are entering into any debt consolidation program, you will obtain statements on monthly basis. When you choose to consolidate debt, you bring a great relief to the monthly cash flow. If your personal finances are in a poor state and every month you find it rather difficult to meet the credit card and loan repayments on time, then you can consolidate your debt and get all the monthly repayment to an affordable level, thereby minimizing the potential for the stress as you fight to make many monthly repayments.


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