Will the Payment Be Reduced on All My Accounts?, Debt Consolidation Loans, Debt Consolidation Services Loan

On most accounts, yes, however, some creditors will not allow a payment reduction, as is often the case with installment loans. In addition, sometimes the current payment is already substantially low. If a payment is set too low, the account may never liquidate. Because of this, and in keeping with a creditor's policy on minimum payments, in some cases the payment may actually need to be increased. Nevertheless, depending on your mix of creditors, your "total monthly debt service" may be reduced substantially.

A payment reduction, incidentally, is not important to all clients. Some clients, for example, are more interested in a fixed monthly consolidated payment, interest reduction, stopping late fees and bringing their accounts current. Some clients even prefer a higher payment, thus accelerating liquidation.

Exactly how much your overall monthly payment can be reduced will depend of your mix of creditors and other factors. Most creditors have policies regarding minimum payment, typically ranging from 1% to 4% of the outstanding balance at the time of enrollment.

Most credit counseling agencies calculate a client's fixed monthly consolidated payment based on a "fixed" percentage, for example, 3.5% of the total debt placed in the program. Enrolled through our agency, each payment to your creditors are "individually" calculated based on their policy. Using this method guarantees that your payments are set at the "lowest" amount acceptable to your creditors, while at the same time, allowing you the option of increasing your payments whenever extra funds are available.