Do I Have to Pay Late Fees?

Debt consolidation is a convenient way of being able to pay all of your creditors at one time. You don’t have to worry about sending different payments to all of your different creditors. You would just simply send in your payment to your debt consolidation company and they will divide the payment up and pay the amount owed to each creditor. The first thing involved in this process is to decide how mush you owe to each creditor. Once you and your debt consolidation counselor have clearly seen how much you owe to each creditor the next step would be to negotiate payment with them.

This is the most important part of the process because here is where you can lower your balance with your creditors and lower your monthly payments. The majority of credit counselors available are skilled in negotiating payment terms with creditors. They usually have an on going relationship with them due to previous business and can gain the trust of your creditor. This can help a lot when it comes to negotiations because the creditor will feel confident that your debt consolidation counselor will do as they say they will do. If your debt credit counselor is a good one there are different types of negotiations they can perform. They can get it so that once you pay the balance the creditor agrees to remove the negative mark off of your credit report. This can help your credit score a lot. They can also get the creditor to lower the total amount you owe, which will make it easier to pay off. These are just a few of the types of negotiations your debt credit counselor can do for you.

One of the main parts of the negotiation process should be getting rid of late fees, overdraft fees, over the limit and any other fees you can think of. These are the most important type of additions you want to be subtracted, as they can be very costly. A lot of these types of fees can range from $15 all the way up to a certain percentage of what you already owe. Once these fees are removed you can see a drastic drop in the amount of money you owe to your creditor. If you feel your debt consolidation counselor isn’t doing the job sufficiently there is always the option of you calling your creditor yourself and negotiating a payment. If you can’t get through to the customer service representative that answers the phone first ask to speak to their manager or someone in a higher position. The key is to be adamant and keep trying until you get what you want or at least close to what you want.

You should always know that everything is up for negotiation. Therefore, if your creditor is not willing to give you exactly what you want ask them what type of benefit they are willing to offer for your payment and keep going back and forth until a mutual agreement is made. You may have to be a little lenient as you are in debt to them however they will be willing to break a little bit in order to receive some kind of payment from you.

What is your estimated debt amount?

-- Select Debt Amount -- $0 to $4,999 $5,000 to $9,999 $10,000 to $19,999 $20,000 to $29,999 $30,000 to $39,999 $40,000 to $49,999 $50,000 to $59,999 $60,000 to $69,999 $70,000 to $79,999 $80,000 to $89,999 $90,000 to $99,999 $100,000 or more