Debt consolidation has been frowned upon by some of the leading financial gurus. While there are some companies out there that are duping their customers, there are also good companies that can help you get out of debt once and for all. Once you’ve done your research and found a legitimate company, you’ll need to follow some simple rules in order to be successful. The following are a few tips for debt consolidation program success.
Make Payments on Time
You absolutely must make payments on time. This should be easier to do now that you’re paying a small fraction of what the creditors were asking. The first three months of the program are the most important though. If for some reason you can’t make your payment on time, you can contact the company to change your due date or extend the due date for that current month.
Speak With Your Creditors
Creditors will continue to call you during the first three months. Even though the credit consolidation company will have sent proposals to the creditors, some will not accept the terms until payments have been made for three months. This means you may continue to get calls. Politely tell the companies that you’re in the program and that payments will continue to be made once per month.
Your debt can continue to be overwhelming, despite being in the program. Take things one day at a time and focus on making your payment each month. Everything else is out of your control. Remember that you’re doing what you can. If you absolutely must do something else, consider taking a second job so that you can increase your payments.
Add Creditors As Needed
If you find that you’re falling behind on other bills that weren’t added to your original plan or you’ve taken on new debt, such as medical bills, you can add creditors to the program. In fact, if you find that you’re going to have any problems at all paying the new creditor, it’s best to add them to the program and avoid getting behind on your program payment.
Take Advantage of Settlement Offers When Possible
While you’re in the program, you may receive offers from your creditors that allow you to settle the accounts for much less than you owe. Sometimes this can be 35% or less of what you owe. If you have the money to settle the account, do so. The only thing you need to keep in mind is that you may have to pay taxes on accounts that are settled.
Debt consolidation programs can help you get out of debt, but you need to follow a few steps in order to make the most of the program. The tips listed above will help you stay on track and pay off your debt much sooner.