Freedom Debt Relief is also one of the industry leaders, and it offers some of the highest quality customer service.
In addition, the company has an easy-to-use dashboard that tracks your consolidation program and the progress of its negotiations with your creditors.
When you start pursuing debt management options, you may get mixed messages from people in the debt relief industry.
Most often, the required collateral is a second mortgage or a home equity line of credit.
This is incredibly risky because if you cannot meet your payments, your home is on the line.
Additionally, the debt management company contacts your creditors and attempts to negotiate lower interest rates on your behalf.
Lower interest rates allow you to more quickly pay off your debts.
Furthermore, if you have bad credit, debt consolidation loans may come with high interest rates.
In addition to putting your home at risk, many consumers end up prolonging their debt.Debt Management Program: These programs often work hand in hand with credit counseling.During this program, you receive financial counseling and meet with a financial advisor.While having one low rate and one payment is an attractive option, many people end up in similar or worse financial situations when attempting credit card debt consolidation.According to Cambridge Credit Corp., a nonprofit credit-counseling agency, 70 percent of Americans who take out consolidation loans end up with the same or more debt after two years.Types of debt vary, and this influences what you can consolidate.