Collection calls are a source of stress for thousands of Texans. With the average credit card debt in the state nearing $6,000, many households deal with daily calls demanding un-affordable payments. Fortunately, debt consolidation TX can help many consumers get their finances under control and stop collection calls.
How Debt Consolidation Works
Many people who have accumulated overwhelming debt owe money to several creditors. Every creditor has their own terms about the amount due, the length of the payment plan and the interest to be paid on the debt. Keeping track of due dates and minimum amounts due when multiple creditors are involved can be a difficult task. Consumers often miss payments inadvertently when juggling multiple credit cards and loans.
Debt consolidation is an option that allows consumers to bundle all of their current debts into one payment. While the total debt remains the same, there will only be one payment due per month.
A debt consolidation company will communicate with creditors on your behalf to negotiate monthly payments. Instead of paying individual creditors, a lump amount is paid to the debt consolidation company each month. The debt consolidation company then takes the time to send funds to creditors to ensure that debt obligations are met.
The result of debt consolidation is one easy-to-manage monthly payment.
Benefits of Debt Consolidation
Why should you choose debt consolidation TX? There are numerous benefits to consider:
No more collection calls.
Instead of dreading the daily calls from collectors, you can breathe easy knowing that a debt consolidation company is speaking to creditors on your behalf. Collectors will no longer be calling numerous times each day to demand unreasonable payments, and your debt obligations will be fulfilled through your debt consolidation payments.
Lower interest rates.
Some consumers will pay the same amount of interest with debt consolidation, but many people with high-interest credit cards enjoy a reduced interest rate when they opt to work with a debt consolidation company. Over time, lower interest rates result in less time struggling with debt payments.
No more late fees.
If you are receiving collection calls due to late or missed payments, creditors are likely piling on late fees that cause debt to spiral out of control. When you opt for debt consolidation, your one monthly payment is disbursed to all of your creditors on your behalf before the due date each month. Late fees often range from $15 to $35 per month, so eliminating these fees can prevent your debt from growing by over $100 every month.
Missed payments and accounts that have gone into collections can wreak havoc on your credit. When you start the debt consolidation process, missed and late payments become a thing of the past. Accounts that have gone into collections are often negotiated to be brought to a current status. Eliminating collections on your credit report has an immediate positive impact that improves your chances of buying a home or finding the perfect apartment in the future.
When you contact a debt consolidation company, you will go over your debts, expenses and income with an advisor to come up with an affordable payment plan. The process of reviewing your finances also involves discussing how you can better manage your income and utilize available funds to pay for necessary expenses and existing debts. Consumers facing out-of-control debt benefit from this portion of the debt consolidation process because it creates an easy-to-follow plan for regaining control of your finances.
Know Your Rights
While debt consolidation boasts many benefits, you may still experience a high volume of collection calls while you determine whether it is the right choice for you. The good news is that all consumers have rights when it comes to fair collection practices.
Unless you have given prior permission, collectors cannot call you outside of the hours of 8 a.m. and 9 p.m. in your time zone. Additionally, collectors are not allowed to call your workplace.
Collection calls may be made to friends and family. While collectors are permitted to call friends and family members of debtors, they may not contact each third party more than once and cannot ask for information beyond an address and phone number. Keep in mind that your loved ones are not required to provide this information to collectors.
Collectors cannot use excessive profanity or makes threats of bodily harm.
If collectors violate any of these rights, contact the Texas Office of Consumer Credit Commission at 1-800-538-1579 to report the violation.
Break Free of Debt
If you are struggling with overwhelming debt, debt consolidation TX can help stop collection calls and ease the anxiety of mounting bills. Contact the trusted staff at Christian Debt Counselors today to take the first steps toward more manageable debt and put an end to the collection calls.