Debt consolidation programs are services offered by certain professional corporations to help people with many unsecured debts put them together into one monthly payment. Debt consolidation loans for bad credit is the only way to survive for people who have many debts that they pay separately. The main benefit behind debt consolidation is the reduced overall debt burden by minimizing the interest rates. This article discusses the stages involved in debt consolidation.

The first step when undertaking debt consolidation is to get free debt consolidation advice and counseling. The first thing that debt consolidators will look at is your past and present financial status. They will assess the amount of debt you currently have. They will ask you to look at your bills and estimate the total amount of your standing debt. After the consolidators have assessed your financial situation, they will advise you to attend a free counseling session. They will provide you with some tips to help you nurse yourself back to financial health. You should at this point ask as many questions as possible regarding your debt consolidation process. The financial consolidators will provide you with all the information you need to consolidate your unsecured debts.

If after the free financial counseling you still feel that you really need debt consolidation help, then you are advised to move on and undertake it. You should ask debt consolidators to give you the debt consolidation agreement. Before signing, make sure that you have gone through all the clauses in the debt consolidation agreement so that you understand all the terms and conditions that hold. If you still have any questions to ask, make sure you get exhaustive clarification from the debt consolidators.

After signing the agreement, make sure that you inform creditors that you have consolidated your debts. As such, all your creditors' calls will be managed by the consolidators' company. You should however keep in mind that the creditors are not legally compelled to comply with all your requests.

In addition, make sure that you have gone through the payment plan. The financial advisors are going to help you reach a payment plan that is suitable for your financial situation and then they forward it to your creditors or collectors. The consolidator is going to use their negotiation skills to talk to your creditors or collectors so that they accept your terms of payment.

Once you have singed the agreement and your creditors have also agreed to your terms of payment, then it is advisable that you start paying immediately. The consolidation company expects you to comply with the agreement the two of you signed. Sending your first payments to the consolidation company without delay is a promising gesture that you respect the agreement you signed with the consolidation company. Remember that the consolidation company has helped you and that it is cheaper to pay the consolidated debt than paying the individual debts.


Your financial situation does not stay the same all the time. Keep on evaluating your financial situation and inform your consultant if it changes. If your financial status deteriorates, then the consultant is going to embark on new negotiations with your creditors or collectors. This way, they will help you get better payment options that are suitable to your financial health.