Bill Consolidation FAQs

At Bill-Consolidation-Services.Com, we have answered a lot of questions from consumers just like you regarding bill consolidation. Bill consolidation is a simple process that can appear to be complex if you are new to the concept. For this reason, we have compiled the most frequently asked questions that we receive from consumers who are struggling to pay their creditors what is due to them each month. Please read on to find the answers to the most pressing bill consolidation questions, and then fill out the form on this page to get your free, no-obligation quote for bill consolidation.

What is Bill Consolidation, Exactly?

Bill consolidation is the process of combining many debts into one larger debt. Your smaller loans and debts are consolidated into a larger loan. In turn, you make one payment to one lender each month, as opposed to paying many lenders. This one payment is usually smaller than the combined total of your payments to multiple lenders, and is written under more favorable terms than your existing loans. For example, most bill consolidation loans carry lower interest than the combined interest rates on average for your existing loans.

Who Qualifies for Bill Consolidation?

Nearly all consumers qualify for bill consolidation. You don’t need good credit for this type of loan. In fact, many people who apply for bill consolidation are going through financial difficulties and finding it hard to keep their heads above water financially. This is why they begin looking for a way out in the first place, and subsequently find out that bill consolidation can be a good way to regain their financial freedom. Even if you have accounts in collections, you can more than likely qualify for bill consolidation services.

Isn’t Bankruptcy a Faster Alternative to Get out of Debt?

The short answer to that question is "not really". Bankruptcy can be a good option in certain limited situations, but in general, you should strive to avoid bankruptcy whenever possible. Bankruptcy can have certain immediate benefits, such as getting creditors "off your back" but so does bill consolidation. Filing bankruptcy, in the eyes of potential future lenders, demonstrates your propensity to walk away from your obligations and abandon your responsibilities. This doesn’t make you look like the type of person they want to do business with. Not all debts can be discharged in bankruptcy, anyway. Student loan debt, for instance, is rarely ever dismissed in bankruptcy. And depending on the chapter you file, you may still end up paying a lot of money back. Bill consolidation is a great alternative that allows you to keep your credit ranking and even improve your credit and borrowing reputation.

I heard that bill consolidation is a scam. Why should I trust you?

Good question! Like any good thing, there are scams and scam artists that operate in the bill consolidation industry. But a few bad apples need not spoil the entire experience for you. At Bill-Consolidation-Services.Com, we have built a solid history of helping our clients who are struggling with debt. Our track record speaks for itself.

How do I Get Started with Bill Consolidation?

Getting started is simple. Gather all your bills and fill out the form on this page to get a free, no-risk, no obligation quote to find out how much you can save with bill consolidation.

If you decide that using a bill consolidation service is the very best thing for you and your financial situation, you will need to ensure that you get several bill consolidation quotes and that you understand exactly what it entails.  Bill consolidation involves you taking all of your bills, placing them together and then taking out a larger loan to pay those off. The goal here is to only have one bill and to shop around for a lower interest rate so that it’s cheaper to pay off all of your debt.  If you can manage to lower your interest rate, than you can pay more towards the principal and get out of debt faster.  Bill consolidation also allows you to only have to work with one lender.

When looking for bill consolidation services, understand that you may find a lot of information about using a credit counselor to consolidate your bills for you. Now this is one option, but it’s a bit different then bill consolidation. A credit counseling organization will attempt to work with all of your creditors and they attempt to either lower the interest rates on your outstanding debt or lower the amount that you have to pay back.  Now once they have done that, they will ask you to give them a lump sum every month and they will pay your individual creditors their monthly fee each month. Nothing has actually been paid off, the credit counseling company just pays your bills for you.  If you work with a good credit counseling company, they may be able to lower the amount that you have to pay off, as well as the interest rates for your various credit cards.

A bill consolidation loan on the other hand, actually pays off the debt, lumps it together and then you pay back one loan along with interest.  On one hand, you are actually taking out a loan, on the other hand, a credit counseling company lumps your debt together for you, and make the individual payments to each one of your creditors. If you choose to work with a credit counseling company, this will be reported on your credit and will affect it negatively.  So you may want to just go with a simple bill consolidation service. To be sure that you get the very best rates, make sure to get several bill consolidation quotes.

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