Debt Consolidation is different than credit repair. Debt consolidation allows you to consolidate your debt into one monthly payment over a certain period of time. Debt consolidation can simply be from a number of unsecured loans into another unsecured loan, notice that we said “unsecure”. Debt consolidation companies do not allow you to consolidate secure debt such as a car loan, mortgage, or any other loan that is secure by collateral.

The way debt consolidation works is that you make a monthly payment into an escrow account that is set up with the debt consolidation company that you signed up with. As the escrow account builds up, the debt consolidation company pays off your debt, usually at a lower percentage than you owe such as 55% of the amount owed. This goes on until each account that you consolidated is paid off, which the debt consolidation company will let you know at that time you are interested in signing up what the length of time will be.

You may be wondering how the debt consolidation company gets paid. Well, they usually charge a monthly fee, which is usually built into your monthly escrow payment. Also, they may settle one of your accounts at a lower percentage than quoted, which they keep the difference.

All debt consolidation companies are not equal. Why do we say this? It is because we have heard of debt consolidation companies not paying the client’s debt that they are suppose to be paying. Debt consolidation companies are heavy regulated but like in any field, there are always those 10% that doesn’t play by the rules.

We do have affiliate debt consolidation companies that we work with in order to provide our potential or current clients the service should they so desire it. We do screen all of our affiliates very well to ensure their and our integrity and upmost customer service.