How Debt Consolidation Works
Debt Consolidation works by taking all of the unsecured debt an individual owes and combining it into one monthly payment. The type of debt consolidation plan used determines whether the accounts are paid in full through a loan, or if the creditors owed are paid monthly through one payment source.
If during the consultation a debt relief plan is found to be a workable solution, the following steps explain how the program works:
- Debt accrued, such as credit card, medical, collection, or other unsecured debts are consolidated into one, typically smaller, monthly payment and sent to creditors once they accept a proposal.
- The account, if it’s open and is a revolving line of credit, will be closed to further charging and be paid off in an expedited manner.
- Once an account is paid in full, the overall monthly payment remains the same, and the additional funds are distributed to the next account (typically either the next lowest balanced account or the next highest interest rate affected account) in order to pay the total debt down as quickly as possible.
Signs That You Need Debt Consolidation
Answering the following yes or no questions can help you determine if you are currently facing a problem with debt.
- Do you use a large or increasing portion of your monthly income to pay your debt? Ideally, you want to have no more than 20% of your monthly income applied to the debt.
- Are you only able to make the minimum monthly payments towards your credit card or loan payments each month?
- Do you divert money to pay bills that were intended for other things?
- Are you carrying high balances on your credit cards? Are they near or at their limits?
- Do you have to use your savings to pay bills?
- Have you been contacted by a debt collector or credit card company regarding delinquent accounts?
- If you have an unexpected need like a doctor or dentist visit, would you have to put it off?
- If you or your partner were to unexpectedly lose your income would you find yourself in financial trouble right away?
- Are you currently, or have you considered, working a second job to get by?
- Do you feel stressed or worried when thinking about money?
Answering yes to any of these questions could indicate that you should consider seeking help.
How to Receive Debt Consolidation in Missoula, Montana
We invited you to enter your information and submit it to us through our website. Or, if you’d prefer, you can call us toll-free to speak with a Certified Credit Counselor and get started right away. The toll-free number is (800) 432-0310.
Our business hours are:
Mon – Thurs: 8 AM – 7 PM CT
Fri: 8 AM – 6 PM CT
Sunday: 10 AM to 4 PM CT (closed holiday weekends)
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