Debt Consolidation | Consumer Debt Group

Debt Settlement

Consumer Debt Group

Debt Consolidation

Debt Consolidation Loan


Thinking of using a Consolidation Company or Credit Counseling Agency?
The Consumer Debt Group's proven debt settlement program will make you debt free within 24 months! Our debt arbitration counselors are available 24 hours a day, seven days a week. Call 1-800.340.7594 for a FREE debt settlement consultation. Nearly every American walks around with some debt. According to the federal government, paying more than 40% of your gross income to pay your debt burden is an indicator of financial distress. Most of us have mortgages, many of us have auto loans or college bills and we surely can not forget credit cards. The total amount of credit card debt in the United States exceeds 750 billion dollars and the average household has over $9,000 in credit card debt spread over thirteen credit cards! For example, the average forty-year-old person making $50,000 to $100,000 has about $108,000 in debt. Chances are a lot of it is credit card debt. To add to this misery, unemployment rates are at record levels and bankruptcy filings have skyrocketed. Let's face it, two years ago many of us were saying "Let the good times roll." Now many Americans are wondering how to get rid of credit card debt. Perhaps you are considering bankruptcy, credit counseling, or a debt consolidation company. If you are considering a consolidation company, think again!

Debt Consolidation & Credit Counseling Programs
Typically, a credit counseling or debt consolidation company is organized as a nonprofit organization. It is important to note that this does NOT mean that the credit counseling or debt consolidation agency is low-cost or trustworthy. Nonprofits are not limited in what they can charge clients or in what they pay their staff. Credit counseling and debt consolidation companies deal primarily with credit card debt, not secured debt like home loans, and they arrange for a reduction in credit card interest rates, an elimination of finance charges, lower monthly payments, relief from collection agents, and one-stop bill paying. After consulting with you and reviewing your assets, liabilities and spending habits, the debt consolidation company or credit counseling agency will see what kind of deal it can get with your creditors and figures how much you need to pay each month to clear your debt. You pay the consolidation company or credit counseling agency that amount each month and they pay each of your creditors. A plan is not worth your while if it can't clear your debt within five years.

Once you sign up, your creditors will close the accounts you're consolidating and you will not be allowed to apply for new credit while in the program. Since your credit limits will be reduced, your credit rating may also take a temporary hit. Traditionally, credit counseling agencies received payment from Credit Card Companies. That's right, credit card companies pay the credit counseling and debt consolidation companies that are supposed to be negotiating for you. Since many of these companies are "popping up" overnight, the contributions they are receiving from the credit card companies is getting smaller, forcing the credit counseling and debt consolidation companies to rely more on fees from clients.

When is the last time that a day passed and you didn't feel bombarded with e-mail and Television ads for debt consolidation or credit counseling companies promising to reduce your monthly payments, lower your interest rates and stopping creditors from harassing you? The debt consolidation industry was once composed mostly of community-based organizations but has now grown tremendously during a short period of time and is dominated by large national companies that heavily advertise their debt-consolidation practices. The problem with these companies is that they have lost sight of the reasons that they were created, and now appear more concerned with making a dollar than they are in providing debt relief. In fact, the Federal Trade Commission and numerous state agencies have noted that there has been an increasing number of complaints about credit counseling programs, which they believe indicates that some organizations are "engaging in questionable activities."

Upon being accepted to participate in Consumer Debt Group's debt settlement program, your creditors will be notified that we represent you and you will no longer receive embarrassing phone calls. Our expert debt arbitration representatives will contact and then communicate with your creditors and will prepare an individually tailored debt settlement program on your behalf.