Topics: Financial Planning : Debt Consolidation
Debt Consolidation is a technique by which a consumer lumps all of their debt together in an effort to obtain lower payments through lower interest rates, reduced/eliminated late fees, and perhaps longer terms. There are basically two types of debt consolidation services: 1) A loan taken out by the debtor to cover all of their outstanding debts. The debtor uses the loan to pay off all of their outstanding debts and then just has to deal with making the one loan payment. 2) A debt consolidation service provider which will negotiate with a debtor's creditors and obtain the most favorable terms possible. The debtor makes a monthly payment to the service provider who then makes payments to the debtor's creditors in an agreed upon apportionment.
Credit Repair
Category for businesses devoted to credit verification and repair.
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Debt Settlement
Companies and services that specialize in negotiating debt settlements.
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