Debt Consolidation Consultation

A debt consolidation consultation is usually needed when a consumer has found themselves in a situation where making monthly payments on multiple credit accounts is daunting. Debt consolidation consultations comprise of meeting with a counselor to review a credit and income history in order to organize a way to lower the monthly payments. A debt consolidation consultation is recommended for those that want to combine all of their debt into one sum, and make one monthly payment. Debt consolidation consultations can be done in a lenders office, over the phone, or through email communications.

Consumer debt is at an all time high in this nation, surpassing 2 trillion dollars. That equates to over $18,000 per household. A debt consolidation consultation should be the next logical step for many of those households. Those who do take the plunge and seek debt consolidation consultations are surprised at how easily combining credit card accounts can really be. Much of a consumer's monthly income can be retained by finding out if consolidation is the next step by attending a debt consolidation consultation. Another major outcome of attending a debt consolidation consultation is the impact a debt consolidation loan can have on a credit report.

When all of the revolving balances on a credit card are paid in full, and only one installment loan takes its place, a consumer will notice their credit score improve tremendously. Consumers are at the mercy of a credit reporting agency when they want to find a place to live, gain insurance, turn on utilities or land a job. There are some states that ban the use of a credit score for determining insurance rates, employment, or utility deposits, but unless the battle is fought in court, the consumer will have to deal with it. A debt consolidation consultation will inform the consumer of the importance of retaining a good credit score, and also offer ways to achieve a better credit score.

Debt consolidation consultations are almost always provided for a consumer free of charge. A debt consolidation consultation is really just an evaluation of the financial history of an individual. Once the financial history is established, creating ways to turn negative debt history into positive cash flow is determined. If the consumer would like to continue with the company that offered them the debt consolidation consultation, they are free to do so, otherwise they can use whatever debt reduction service company they see fit. Debt consolidation consultations are not contracts to do business, they are simply a way to evaluate a situation and understand which routes are available to improve that situation.