Debt Consolidation Frequently Asked Questions

Q: How does your program work?

A: When you've enrolled in the Consolidate 1st program, one of our trained debt consolidation professionals will contact your creditors to get your interest rate and monthly payments reduced to an amount that you can afford to pay. Through helping thousands just like you, our counselors already have working relationship with your creditors and know exactly how to get the best deal for your situation. Once your repayment plan is one you and your creditors can be happy with, you will begin making your payments through us. We make sure that each of your creditors get their designated payments. You have just a single, affordable payment to make each month.

Q: How does your program impact my credit report?

A: In many cases, working with Consolidate 1st will strengthen your credit report because it shows your creditors that you are in fact trying to pay of your debts. When you are in a tight financial situation, just making the monthly minimum payments can be impossible. Missed payments and late payments are marks against you in your credit report. Using our debt consolidation program means that every creditor gets paid each month...on time.

Q: Couldn't I just file for bankruptcy?

A: You could file bankruptcy, however statistics show that this alternative damages your credit rating for many years. We offer a safe and sound alternative to bankruptcy that will help you rebuild your credit report quickly and easily.

Q: What is an unsecured debt?

A: Unsecured debt is a debt in which no collateral is held by the creditor. Credit cards, department store cards, medical bills, and gas cards are unsecured debts. A secured debt is one in which something of value is held as collateral. In the event that the debtor defaults on the loan, the creditor keeps the collateral.

Q: How does Debt Consolidation differ from a loan

A: A debt consolidation loan could look good to you but is not always the best way. These are secured loans. Usually you must re-mortgage your home to secure the loan, another debt! It doesn't make sense to take out another loan to reduce your current debt load. Using our debt consolidation program, you will be paying down your debts without another loan because your creditors are willing to work with Consolidation 1st to your benefit.

Q: Why would my creditors lower my interest rate and monthly payments?

A: Your creditors want their money. They realize that if they don't do what they can to help you, you could file bankruptcy and they will get none of what is owed them. If they work with us they get some of their money because you are more able to pay off your debt.

Q: How long will it take to pay off my debts and be debt free?

A: Each of our clients is different. How quickly your debts are paid off depends on the total amount of debt and the terms that we are able to work out with each of your creditors. Many of our clients are often able to pay back their debt and be debt free within 3 to 5 years.