If you’re already under a consolidation loan, be sure to make your deposits on time. This will assure your creditors that you really intend to pay for your debts. Having delayed payments might cause the creditors to resume the normal collection activities and what’s worse, they might turn it back to the regular interest rates and fees.
Be sure to keep in touch with your consolidation representative. There may be instances that your account will be turned over to a collection agency. Keeping your agent updated on the changes will help you solve your problems.
Pay your credit to your consolidation company. They are the ones that divide how much goes to each creditor.
Always check on your creditor’s statements. It is your duty to monitor the monthly statements sent to you by your creditors. Check if your creditor has reduced the rates. They should also have the late fees stopped. Also check if your debt consolidation company is paying your creditor the right amount.
There are many types of debt consolidation loans available. There could be a loan that would take you a longer time paying but has a higher interest rate. There are also loans that offer short payment duration and a lower rate of interest. If you could not pay for a larger amount every month, you could choose consolidation loans that offer a longer plan.
Rates of the consolidation loan also vary. There is the variable-rate debt consolidation loan that allows you to make extra repayments anytime with no extra cost. However, a fixed-rate debt consolidation loan will only accept fixed repayments for the duration of the loan. Here you can read about How to Choose a Credit Counseling Agency
