Debt Consolidation - How To Stop Creditor Harassment With Debt Consolidation

Creditor harassment can be very stressful for a debtor who is struggling hard to keep up with bills. The persistent phone calls and threats from creditors have little or no effect on the owed balances. In fact, the harassment can actually cause the debtor to miss more payments as stress contributes to memory loss and confusion.

Anyone who has been tormented by the voices of demanding creditors now has a solution that can help. Debt consolidation can end creditor harassment very quickly. Consolidation is a fast, effective debt repair method that can stop the phone calls as soon as the debtor signs on the dotted line.

All About Debt Consolidation

A debt consolidation is a process in which an individual merges his or her credit accounts. Instead of having multiple accounts to worry about, the various accounts are neatly merged in the debt consolidation process. The consolidation leaves the debtor with only one large balance to pay. Finances are more organized and multiple creditors are satisfied.

An individual can initiate a debt consolidation in two ways. The debtor can apply for a consolidation loan with a lender. He or she can also speak with a debt management consultant about a third-party consolidation. A consolidation loan is a financial product that covers all outstanding balances. A third-party consolidation is more of transference of responsibility. The debtor pays the debt management company a lump sum payment every month. The company then forwards monthly payments to all the debtor's creditors.

This type of consolidation is good for the debtor because it takes the stressful situation out of his or her hands. The debt management company will charge a minimal fee for its services. A lender would also have to pay a fee for taking out a consolidation loan. The process that one chooses depends on his or her unique situation.

How To Stop Creditor Harassment With Debt Consolidation

As long as a creditor is receiving money, there is no need for harassment. A traditional debt consolidation loan will stop creditor harassment as soon as the debtor uses the loan proceeds to pay the debts. A third-party debt consolidation is just as effective. Even though the debtor has not officially paid off all debts, creditors will still stop the harassment. The reason creditors will stop the harassment is the debt management company. The debt management company will take over and handle multiple creditors on behalf of the client.

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