What is a Fixed Monthly Consolidated Payment?, Debt Consolidation Loans, Debt Consolidation Services Loan

Upon enrollment in the program, a "fixed monthly consolidated payment" is calculated based on the "lowest" payment amount acceptable to your creditors. While it's true that some creditors will accept any payment amount (rather than nothing), the fact is most creditors have policies regarding minimum payments and will only reduce interest, stop late fees and re-age past due accounts if their minimum payment requirement is met. The amount of your fixed monthly consolidated payment is then forwarded by you to the agency, which is turn disburses the funds to your creditors on a monthly basis.

When first applying for enrollment, our agency "estimates" this payment based on the information provided by you. We then assess if you could maintain the payment while sustaining a comfortable standard of living. If so, approval is typically granted.

Upon receipt of your enrollment material, the amount of your fixed monthly consolidated payment is re-assessed based on your actual statements and any changes that may have occurred since you applied. Upon completion, an Official Enrollment Package is prepared and sent to you via priority mail. This package contains information regarding the program and your accounts, including a revised estimated fixed monthly consolidated payment. The revised estimated payment is typically the same or close to the original estimate, but in any case, usually extremely accurate. Your "actual" fixed monthly consolidated payment can only be determined once all of your creditors respond to the proposals sent by the agency.

Having a fixed payment provides an exact dollar amount in which to budget. You draft a single check each month to ultimately liquidate all your accounts placed in the program.