Debt consolidation is combining multiple loans into a single loan. Instead of dealing with several separate loans, monthly payments, and billing statements, you can bundle everything together and handle it with one payment. Consolidation can also involve refinancing – lower interest rate and/or longer term – in order to make the debt payments more manageable.
Companies that offer to help you consolidate your debt can use a variety of methods and it’s vital that consumers understand the differences in each plan. Many promote too-good-to-be-true debt relief programs, which rank high on the list of complaints received by the Federal Trade Commission.
A NJ bankruptcy attorney claims these programs are not only a bad idea – they are a scam. Click to read more.