The best debt consolidation companies negotiate with creditors to lower the total amount of debt owed before putting together a debt consolidation loan, rather than simply providing a new loan to cover the existing debt, thus providing genuine, substantial savings for the indebted individual.
Based on reviews from a number of consumer websites, these are three of the best debt consolidation loan companies in 2016.
This is often done to secure a lower interest rate, secure a fixed interest rate or for the convenience of servicing only one loan.
A prudent debtor can shop around for consolidators who will pass along some of the savings.
In this case, a mortgage is secured against the house.
The collateralization of the loan allows a lower interest rate than without it, because by collateralizing, the asset owner agrees to allow the forced sale (foreclosure) of the asset to pay back the loan.
With many great debt consolidation loans available in one spot, it's easy to see why over 1 million people start off their loan searches at Am One each year!
The term “debt consolidation company” is a bit of a misnomer, because rarely does a company solely provide consolidation services, or if they do they often do it under a different name, such as a credit counseling agency.