Typical Debt Consolidation Plan

Mary Jones had a good job. She earned great money, got lots of overtime, and was paying all of her bills on time. She never bought more than her credit cards could handle, and felt that she was responsible with her money as she never missed a payment, nor was she ever late. She had enough money each month to get a car, so she took on a car loan which she also paid religiously each month.

Then Mary lost her job. She had some savings and used that while she looked for other work. However, the same economy that got Mary laid off wasn’t looking to hire any more people. Mary was out of a job and was now out of money. So what should she do? She has mounting credit card and medical bills, her car payment is not getting paid, her mortgage is close to getting behind and she feels lost.

So Mary calls a debt management company. The debt management company first writes to all of her creditors to see if they could settle her debts for less amount of money. Some of them agreed, and some did not. Those that agreed realized that she was working with a plan, and agreed to set up payments. The payments were still too much though, and Mary looked into debt consolidation.

The company got all of her reduced balances lumped into one debt consolidation together. This enabled her to pay even less each month on the bills that she owed, but paid off all of her creditors at the same time. Now she didn’t have to worry about making several payments, or even making those payments at all. She made her monthly payment to her debt consolidation loan, and in no time was in a much better place than she would have been if she had not done anything about it.

 

 

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