Frequently Asked Questions about Online Debt Consolidation

Here are the answers to the most commonly asked questions about online debt consolidation.

What is online debt consolidation?

Online debt consolidation offers all the benefits of debt consolidation (reduced payments, lower interest rates, etc.) with the convenience of an application process that can be completed entirely online. Online debt consolidation bundles all of your debts into one easy monthly payment to one creditor. As a consolidation customer, you will have access to low interest rates that have been previously negotiated with your creditors.

How do I apply for online debt consolidation?

You can apply for online debt consolidation by clicking "start now" to fill out our free application. We will ask you for some basic contact, income, debt, and creditor information. After we receive your application, we will contact you via telephone to offer you your free quote and discuss which online debt consolidation services would be most beneficial to you.

What does online debt consolidation cost?

When you consider the thousands of dollars online debt consolidation saves you, the relatively small cost seems well worth it. Most online debt consolidation companies charge a one-time commission plus a monthly administration fee. The commission is usually the amount of your first monthly payment to the consolidation service. For example, if your consolidation company reduced your monthly payments from $500 to $200, your first monthly payment would be $400--$200 toward your debt and $200 in commission. You pay this commission only once. The company will also charge a monthly administrative fee, which is either a percentage of your total debt or a flat rate. Administrative fees average around $30 per month.

What online debt consolidation services are available?

Our online debt consolidation offers two primary services: debt consolidation and debt negotiation. Debt consolidation is ideal for customers who have many, high-interest debts. Debt negotiation is for customers who have a large total amount of debt, are seriously behind in payments (at least 3 months), and/or have dropped out of a debt consolidation program. Debt negotiation is different from debt consolidation in the effect it has on your credit and what the process entails.

Can I use online debt consolidation for secured debt?

We offer online debt consolidation only for unsecured debts. You must have a minimum of $5,000 of unsecured debt to qualify for our services. Secured debts are much harder to negotiate because creditors would rather seize your property than negotiate to give you lower interest rates or payments.

Will online debt consolidation hurt my credit?

The answer to this question depends on what type of online debt consolidation you choose. Traditional debt consolidation will not impact your credit negatively. In fact, online debt consolidation often helps improve your credit score because it reduces your debt-to-income ratio and helps you pay bills on time. Debt negotiation, on the other hand, does have an initially negative effect on your credit because you have to stop paying your creditors for a time. Once debt negotiation is completed, though, your accounts are marked as "paid in full." The damage done initially is easily repaired.

After you consolidate, check out our get out of debt asap tips.