Consolidated Credit has helped millions of consumers seeking debt relief through their credit counseling solutions and debt management programs. Let’s review how they can also help you manage and pay off your debts.
Credit-Safe Alternatives to Eliminate Debt
About Consolidated Credit Solutions
Consolidated Credit is a 501(c)3 nonprofit credit counseling organization with over 28 years of industry experience. To date, over 10.2 million consumers have resolved over $9.75 billion in debt through its debt relief program.
As part of their credit counseling services, the agency also offers housing counseling through HUD-certified counselors and an extensive library of financial literacy resources accessible free of charge. Ultimately, Consolidated Credit aims to provide debt relief solutions that help consumers avoid bankruptcy and improve their finances.
Should You Use Consolidated Credit Solutions?
It depends on your financial situation. Consolidated Credit could be a good fit, though, if you’re overwhelmed with credit card debt or other secured debt and would prefer not to file bankruptcy. Their credit counselors will work with you to find a viable solution and advocate with creditors on your behalf if you decide to enroll in a debt management plan (DMP).
Benefits of Consolidated Credit Counseling Debt Relief Services
When you work with Consolidated Credit Counseling, you will enjoy these benefits:
- You could expedite the debt-payoff process.
- You will work alongside a seasoned credit counselor.
- You could save a bundle in interest and fees.
- You could get a lower monthly payment on your debts.
- You could be relieved from collection calls and activities.
- You could minimize damage to your credit.
The Difference Between Consolidated Credit Solutions, Debt Settlement, and Debt Consolidation Services
There are different approaches and solutions when it comes to managing and paying off debts. See here the differences between Consolidated Credit’s debt management program, debt settlement, and debt consolidation services:
- Consolidated Credit Solutions: If you enroll in a DMP, credit counselors work directly with your creditors to get a lower payment and other concessions to help you pay off debt faster. In the meantime, you will make monthly payments to the credit counseling agency per the agreement, and they will pay your creditors directly each month until all your debts are paid in full.
- Debt Settlement: Certified debt consultants negotiate with creditors on your behalf to settle your debts for less than what you owe. While enrolled in the program, you will make monthly payments to a dedicated account instead of your creditors to expedite the settlement process. Each time a debt is settled, the funds will be pulled from this account to pay the creditor. Debt settlement can help you get out of debt faster but also has severe consequences for your credit score.
- Debt Consolidation: Debt consolidation streamlines the repayment process and can also help you get out of debt faster. Several outstanding debt balances are rolled into a new debt product, preferably with a lower interest rate. Instead of paying several creditors, you will only make one payment per month until the new loan or credit card is paid off.
Credit-Safe Alternatives to Eliminate Debt
Consolidated Credit Debt Relief Services Review
Here’s an overview of how debt relief services from Consolidated Credit work.
Types of Debt They Can Help You With
Consolidated Credit can assist you with the following types of debt:
- Credit card debt
- Collection accounts for medical bills, unpaid utilities, and service contracts
- Debt consolidation loans
- Payday loans
- Personal loans
- Retail store credit
Consolidated Credit Debt Relief Process
If you decide to reach out to Consolidated Credit, here’s an overview of what to expect.
Step 1: Free Credit Counseling
When you call the toll-free number, a credit counselor will assess your financial situation by asking a series of questions. Generally, they will be related to the cause of your debt woes and current challenges.
Step 2: Review Your Options for Debt Relief
During this step, the credit counselor will help you create a budget and evaluate your debt load. Prepare to provide information about your debt, including your current balances and interest rates. The credit counselor will also collect information about your income and expenses, along with the last four digits of your Social Security number, to conduct a soft credit check. (Don’t worry- it won’t impact your credit score).
Step 3: Enroll in a Debt Management Program
Based on your responses to the initial questions and your overall financial health, the credit counselor will devise a plan of action to help you get out of debt. The credit counselor may recommend a DMP plan and help you move forward with getting it set up. However, they are obligated to review other options with you if they’re more feasible.
Suppose you decide to enroll in a DMP. In that case, you will work directly with the credit counselor to find a monthly payment you can afford. Next, the credit counselor will notify your creditors about the modified repayment schedule and negotiate concessions to help you reach your debt-payoff goals. Be mindful that creditors who agree to reduced payments under DMP plans will likely close your credit cards.
Consolidated Credit Fees and Costs
There’s no fee for credit or housing counseling. However, DMPs are accompanied by a monthly fee between $40 and $79, depending on your state. You will also be responsible for the agreed-upon monthly payment per the terms of the DMP.
Does Consolidated Credit Affect Your Credit Score?
Your credit score shouldn’t be impacted if you use Consolidated Credit for credit counseling or enroll in a DMP. However, the creditor could report your participation in a DMP to the credit bureaus and it may be noted on your credit report while you are enrolled. The status will be removed immediately once you complete the program. DMPs do not generate any negative credit report items in your credit report.
However, the program will likely close the credit card accounts enrolled in the program. This can decrease your credit score in certain cases.
Consolidated Credit Solutions Reviews: Is Consolidated Credit Good?
Consolidated Credit boasts an impressive track record of success and exceptional reviews from past and current clients. It holds accreditations from the Better Business Bureau (BBB) and the ANSI National Accreditation Board (ANAB). The agency is also ISO 9001 Certified through Bureau Veritas and a member of the prestigious Financial Counseling Association of America (FCAA).
Other Solutions Provided by Consolidated Credit
Beyond credit counseling, Consolidated Credit also offers housing counseling and financial education.
Planning to buy a home soon? Or maybe you already own a home and seek ways to get the most out of your investment? You can get free guidance from a HUD-approved housing counselor. Housing counseling is also available if you’re behind on payments and face foreclosure.
The website features a vast library of free resources, including how-to guides, eBooks, courses, videos, webinars, infographics to help you get ahead financially. You can sort the resources by topic to quickly find what you need.
How to Get Started with Consolidated Credit Solutions
If you are struggling with debt, you can visit the Consolidated Credit website or contact them on the phone (844) 326-6202 to book a free consultation with a credit counselor and explore your options to pay off your debts.