The process involves working with a professional bill consolidation company, who will contact your creditors and try to negotiate both lower interest rates and a lower monthly payment. Just about every major credit card company and lender participates in a debt consolidation program. This means that you do not have to deal directly with your creditors yourself and it also puts an end to phone calls and letters from them demanding payment, that are often upsetting.

In addition to benefiting from lower monthly payments, you generally only have to write one check each month to the debt consolidation company, who then distributes the funds. Most companies also offer direct debit from your bank account and the process has the big advantage of being entirely confidential.

Bill consolidation includes all of your so-called unsecured bills, such as credit and store cards, consumer loans and unpaid medical bills. It does not cover your mortgage or car loan and these still have to be paid on time in order to avoid repossession or foreclosure. Once you agree to participate in a bill consolidation program, you are expected to stay for the length of the program – usually several years – and make payments as scheduled. If you drop out of the program before it has finished, your creditors then have the right to increase interest rates and add on extra fees and late charges. Some debt consolidation companies allow you to keep and use one credit or store card, and many participants find that their credit score actually improves over the long term.

Nobody wants to admit that they cannot mange financially. However, bill consolidation can be a realistic and practical solution for you if your poor financial situation is largely caused by too much unsecured debt.

Why is it difficult to pay these fees?

The typical debtor has most likely lived on using credit cards for quite awhile before they come to the realization that they can not continue down the same financial path they are on. Some times these conclusions are done by the individual and sometimes they come to the realization by a financial crisis when they realize they need to pay for a major expense and their credit is either capped because they reached their credit limit or they can not attain more credit to pay for what they currently need. It is at this point people begin to look at their options. One of the frustrations with paying an attorney comes because all their cash must be used on credit card payments to stay current. However, once someone meets with a bankruptcy attorney and they continue to use the credit card they are possibly committing fraud by continue to use credit cards. Therefore, they can not use the credit card to pay their attorney. Fortunately, the debtor can pay the fees with in a couple months if they stop paying on all their credit cards. This will be the advice of the attorney, quit paying on all the credit cards and pay a retainer fee and then you can save the money to pay the attorney in full. The attorney should be willing to accept all creditor call once the retainer fee is paid. Unfortunately, after the paper work is files several attorneys will require more money to update bankruptcy paper work. If you forget other assets or debts it will cost extra to update your bankruptcy schedules. Therefore, if you plan on filing take time to look at all your assets and debts by pulling credit reports and finding ways to interview and ask questions from other Michigan bankruptcy attorneys

What if I told you that you could be debt free in just a few short years time? I know a few years sounds long, and it is by many standards, but if your debt will take decades to pay off, doesn’t it
sound just that much nicer to have it all gone in about three years. ‘Debt Free in Three‘ is the book that makes this magic happen.

The best part about this is:

• The system is NOT filing for bankruptcy
• It is NOT living off of the cheapest cardboard food you can buy
• Its NOT just for those with good jobs, anyone can do this
• Its NOT illegal or immoral, you won’t have to beat up granddad for your inheritance
• And it’s NOT trying to sneak out on your bills, and end up defaulting on them.

It’s not debt consolidation, because where does that really in the long run? All debt consolidation does is that it takes all your debts, and gives them all to one company, who may lighten the load a bit, but it will not be something to celebrate about. A consolidator will be able to maybe get your 35 years of payments down to 25. But why not cut that 25 into 3-5?

Best part about this entire deal, is it involves no lawyers, no courts, and no reading of the fine print to get yourself out of this debt you’ve accumulated. That stuff is just a pain and no one needs to sit at their kitchen table at three in the morning with a magnifying glass to the contract they signed so many years ago, trying to figure out the loophole they can jump through. If you’re not the one doing that, you’d have to hire a lawyer to look through it for you, and there’s even more money you’d owe to someone else. It would just compound your debt.

‘Debt Free in Three‘ is the most comprehensive book I’ve read when it comes to getting rid of debt years ahead of the time the creditors expect you to. With it, you’ll really learn how to get out of debt quickly.