About
[About debt and related decisions]
It all began with a simple idea fueled by personally seeing how this process works. Having seen how these programs can change clients' outlook on life, not to mention the fact that their outlook on their financial life changes as well; I feel confident that you or someone you know can have a lifestyle change as well.
I pride myself on being able to satisfy and/or point you in the right direction when those questions come to your mind. My approach is rooted in quality and integrity, ensuring that everything I do reflects my commitment to excellence.
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Jimmie Baker
...Viet Nam Era Veteran,
Courier,
Author,
Church trustee...
(...as an example, do you remember...)
(an example follows)
Were there times when you would have liked to get rid of 5 accounts, each averaging (say) 4,000 dollars. You'd borrow 20,000 dollars. You'd get the 20,000 $ check and pay them off individually, immediately. Or the loan company would pay them off. Then and there you have a zero balance on those accounts, but you still owe the loan company about 24,000 $ or more.
Now, your (monthly payment to the loan company may be less than the total of the monthly payments you were paying on the your previous 5 accounts. That is good! The goal under this original program to reduce debt was likely to lower your monthly payment and get a few dollars extra.
With the new debt consolidation industry, you contract with a debt consolidation company that adds up your total bills of 20,000 that consist of the same 5 accounts. But here, you don't get any money. They loan company pays an amount to each one of them on a regular basis; perhaps monthly. Your new monthly payment to the debt reduction company may be 40-50% of what you was paying for your bills before the change.
Other differences may be in effect, as well. In times past, many consolidation loans were processed as you visited their office. For today's debt consolidation loan industry norms, the whole process is now processed online.
You may have questions,
early in the process:
Your counseling session will cover your initial questions and others you may have. But, to start, you may have these questions in mind:
Q. Will I have loan type options?
A. Yes, perhaps it may be called a counseling loan, debt loan, tax loan, or other based on your conversation.
Q. When will my program start, if approved?
A. Immediately, such as when you set up payments to be deducted from your bank account.
Q. Will there be a transfer or sorts?
A. Your account balances will be paid at intervals, no transfer of sorts, all monies to such as one credit card, will be made, or you will be told of the process by your counselor.
Q. What about my credit?
A. Normally, you may not be told one way or the other, as you will see in the reviews, what credit score range is acceptable.
Q. Would I be told of downsides?
A. Mostly, you would be expected to exercise good and prudent ways of managing your future payments and charges. It has been known that people would do things that go against their original goal of refraining from inappropriate charges on certain accounts. Thus, under this example, when your program is over, you would have accumulated another set of debt, all over.
"Welcome!..."
...is the voice you will hear after you have been approved to be in a debt consolidation program! At that point you would have been , or then, be asked to explain, in more detail, your situation. The conversation may have included the following questions and/or points of interest:
a. Are you current or behind on your bill payments?
b. Are you up to date, but struggling, with no descretionary income?
c. Have you tried a plan of your own to reduce your debt; and it was not successful?
d. Have you thought about bankruptcy as an option?
e. You will be asked to review your current income and accounts with the counselor.
