Consolidate your credit cards into a lower payment

debt consolidation, credit counseling and debt management services

Client Testimonials:

whom it may concern
This is the second time I have utilized your services and I am just as pleased as the first time. I can’t thank you all enough. If ever you need endorsements please feel free to use my letters or contact me directly at the phone number on file. Much Thanks

Their one on one counseling program is great! In a world of dishonest people that will do anything to earn a dollar, it was a great relief to deal with a credit counseling company that earned my trust from the get-go, which is not an easy feat. I highly recommend them!

We were just about to obtain a debt consolidation loan from a local lender here in Georgia. We talked to a counselor and he explained the benefits of consolidating my debt through their Reduced Interest Rate Program. They were able to get us a lower interest rate and a much lower monthly payment without putting up the family home for collateral. All this and they were still able to cut our over all payoff time in half!

Consolidate your credit cards into a lower payment

Transferring debt balances to the wrong lower interest debt consolidation loan is tantamount to accepting a life preserver from a shark. Similarly, choosing the wrong consolidation loan savagely threatens the point of consolidating at all.

As stated in the introduction of our debt consolidation program. The message throughout is the fact that you must look beyond the debt consolidation program's interest rate and any other variables except total cost.

The fact that a payment may be lower does not mean you are saving money.

For example, the minimum monthly payment on a credit card is typically 2%-3%. In most instances the less you pay per month, the more you pay overall. In fact, see what happens with varying minimum debt payments based upon a $5000 balance and a 17% interest rate. By increasing the minimum debt consolidation payment from 1.67% to 3% the total interest paid is reduced from over $25,000 to just over $4000... a reduction to 1/6th. Not only that but the amount of time to pay this debt off is reduced from 81 years to 18 years. Obviously you don't want any debt for 18 years. So what's the solution? Increase the monthly payment.

Similarly, transferring a high interest unsecured debt to one with lower interest doesn't always save you money either. Take a look at our debt consolidation questions and answers page which assumes a $5,000 balance.

An interest rate of 13.5% but a minimum debt payment of 1.67% will cost you $9538 in interest and take 41 years to pay off your total debt. On the other hand, a higher interest rate of 19.8% but a minimum payment of 3% will cost you only $5858 in interest and take only 21 years to payoff your total debt.

Pretend you currently your unsecured debt has 19.8% interest. If you transferred your debt to lower interest but requiring a lower monthly payment, the creditors would love you but you are digging yourself a deeper hole. WHY? In the above example the lower the monthly payment percent, the longer the debt will last, and the greater the interest paid to the creditor. In this case, lowering the interest by almost 6% nearly doubles the amount of interest you have to pay... not a smart move to consolidate your debt.

It follows then that if you have multiple loans that you are considering for consolidation, you have to be careful of the sales ploy "one lower monthly payment" or "less interest than you are currently paying". It simply doesn't matter. What matters is, what is the total interest in dollars you currently will pay versus what is the total interest in dollars with the consolidation loan.

Re-financing a mortgage at a lower interest so that you can have a lower consolidation payment can be the same thing. You must calculate the total cost in interest to know if it will save you anything. Remember your "debtor" is anxious for you to lower your payment. Why? A longer loan earns more interest and you now have more monthly money to borrow still more money.

here is only one way to save money and only one way a consolidation loan can help rather than hinder... payoff the debt as rapidly as possible so that you pay less interest. Additionally, small amounts can do wonders because you have compound interest working for you instead of against you.

Follow our debt consolidation program and add the following amounts monthly to your mortgage payment and see how much $ interest you will save and how many months you will shave off the time remaining on your mortgage.

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