Question:

What is a debt consolidation agency?

Answer:

You can find a debt consolidation agency either online or in your community. The majority are supposed to be non-profit organizations aiming to assist consumers in finance and money management. Debt consolidation agencies will provide loan counseling and debt consolidating plans to troubled consumers.

Debt consolidation agencies maintain close relationship with financial institutions and credit card companies who provide them with percentage of the debt repaid by the debtor. This is how debt consolidation agencies succeed in operating as non-profit entities. Those agencies try to reduce and completely eliminate their clients' debts over a short (usually five year) period.

When contacting a debt consolidation agency, make sure you ask about fees, as there might be some hidden fees, and ask for their clients testimonials. Even if there are some "voluntary contributions", debt consolidation agencies are considered more affordable than approaching a private lender or financial institutions.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
Was this Mortgage QnA helpful?
Not at all
  • Currently 2.9/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: