Bill consolidation is a way through which you can pay off bills by taking advantage of reduced interest rates and fewer monthly payments. Attending a no-obligation free counseling session with a debt relief company will enable you to understand whether you should consolidate bills or look for some other options. Bill consolidation program is similar to a debt consolidation program where you get help from a consolidation company. If you have credit cards, medical bills, utility bills, store cards or personal loans, they can be paid off through a bill consolidation program.
The bill consolidation company will assess your financial needs through a free debt counseling session. The debt counselor will ask for details of your outstanding bills and monthly income and help you find out how much you can pay monthly. The counselor will discuss the possible options for bill consolidation and help to choose the one that's best for you. The consolidation company will negotiate with your creditors or collection agency (CA) in order to reduce interest rates. They may ask your creditors/CA to waive off or reduce late fee. If you have taken out credit cards, the consolidation company will have all the card accounts closed.
Bill consolidation loans are personal loans taken out for bill consolidation. Such loans are available at a rate usually lower than the average interest rate at which you're supposed to pay off bills. Thus, you can repay debt with one big loan. Instead of making multiple payments, you need to pay a single installment each month to repay the bill consolidation loan. However, watch out for the loan costs when you go for it. Most of the laws that regulate bill consolidation loans focus on regulating the financial institutions that provide the consolidation loan. All nationally chartered banks, and a few state chartered banks, are required to be insured by the Federal Deposit Insurance Corporation (FDIC).