The Truth About Bill Consolidation

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It’s tempting-pay off all those credit card debts with a new loan, then make just one monthly payment. Tempting, but risky. Most consumers who take out bill consolidation loans end up throwing good money after bad. They usually build an even more towering mountain of debt in just a few years because they didn’t change their spending habits.

Fortunately, there is a better tool for leveling mountains of debt. Nonprofit consumer credit counseling services agencies like ClearPoint Credit Counseling Solutions stand ready to help consumers restructure their personal finances and build better habits for the future. Rather than just trading one debt for another, debt consolidation with one of these agencies restructures your existing unsecured debt so you can pay them off more quickly. Here are the types of debt we can consolidate into one payment for you:

  • credit card bills
  • retail card bills
  • gas card bills
  • finance company loans
  • medical bills
  • hospital bills
  • past due utility bills from inactive accounts
  • attorney bills

Consumer debt counselors at ClearPoint work hard, not just on working with creditors on consolidating monthly bills for our clients at a lowered interest rate, but most importantly, to educate consumers on taking control of their finances, helping them change old habits and conquer debt once and for all.

Is Debt Consolidation For You?

Bill consolidation through a debt management plan can be a great tool to help some people organize their finances and get spending under control. Will it work for you? The answer is “yes” if you.

  • …are dodging collection calls for overdue bills.
  • …are financially overwhelmed by several credit card balances, some at high interest rates.
  • …are only making minimum monthly payments or less.
  • …feel overwhelmed by debt and aren’t saving any money.
  • … are “maxed out” on credit lines.
  • …sometimes skip or “juggle” bill payments.

How Debt Consolidation Works

A certified consumer debt counseling expert can review your personal financial situation through an obligation-free budget counseling session. At the end of this consultation, your ClearPoint debt counselor will review all of your options with you. If you are a good candidate, he or she will recommend a debt management program to repay your credit balances. You may be surprised to see how quickly consolidating those bills into the same (or lower) monthly payment can knock out your debt.

In a debt management program, you pay the credit counseling services agency an agreed-upon monthly amount, and they disperse those funds to your creditors. As a nonprofit organization, ClearPoint offers debt management services for a modest fee that is included in your monthly amount. Your debt counselor will act as a mediator between you and your creditors, to help reduce minimum payments or interest fees. You receive monthly statements from ClearPoint reflecting the debt you have been able to consolidate through the program. The statements show how much debt you have on the program and how much you pay monthly, so you will know how soon the bills will be paid in full.

Finding the Right Debt Consolidation Agency

There are agencies with varying areas of expertise out there, so it is important to find the one that is right for your situation. Make sure that the credit counselor answers your questions and provides relevant and meaningful information–you should completely understand costs involved and how the process will work. Your first month’s payment should never be put toward agency fees only, and a reliable agency will always gladly provide an address, contact information, and the counselor’s name.

If a debt management program is appropriate for you, there is no reason to delay. Next month’s convenient, consolidated bill payment could be putting you on the road to a debt-free future.

Call 800.750.2227 (CCCS) to make an appointment for a free credit counseling session or get started now online.