FAQ

Find answers here to frequently asked questions about this site and debt consolidation.

What types of debt can I consolidate?

You can consolidate just about any type of debt that you can secure a large enough loan to cover. Some examples of consolidation debts include student loans, credit cards, auto loans, and personal loans.

What if I have bad credit?

If you have bad credit there may be small steps that you can take to improve it before applying for a consolidation loan such as paying down and not using your credit cards as often in order to increase your debt to available credit ratio, or paying off or negotiating away any collections accounts you might have on your credit report. If none of these options work for you, you may be able to receive a consolidation loan from a high-risk lender regardless.

How long does debt consolidation take?

Debt consolidation takes as long as it takes to get a loan approved and then using the funds from that loan to pay off your other debts. Before you send payment to your other lenders, you should first contact them and request a payoff amount which for some types of loans is usually different than the balance you have on the bill. This will help keep you from falling into trouble by thinking a debt is paid off and take care of only to find out later that you have missed payments and accrued late fees on a small remaining balance. Learn about life after debt consolidation on the following page.

Do I need to speak with my lenders before I consolidate my debt?

It is not necessary to get permission from your various lenders before paying off the money you owe them with a consolidation loan. Two things you may want to keep in mind before you pay off some loans, however is a possible prepayment penalty for some loans and making sure you contact them to receive the actual amount you need to send in in order to pay off the account.

Is my information secure?

This site uses sophisticated Internet technology to encrypt your data as it is transmitted to our network of service providers - your information is secure.

Is debt consolidation the same as bankruptcy?

Not at all. Bankruptcy is a court-ordered discharge of your debts due to your proven inability to pay them. This results in a drastic offense to your credit report and credit score. Debt consolidation, on the other hand, is actually paying off your debts by using a new loan or credit card to pay older, smaller ones off.