Consolidating my credit card debt
A Debt Consolidation Program (DCP) involves your unsecured debt, which may include your credit card bills, lines of credit, unsecured loans – or any other debt that doesn’t require collateral, such as a home or car.Consolidating debt through a Debt Consolidation Program could be the answer to all your debt problems.You acquire new money management skills that can last a lifetime. It’s about understanding why you treat money the way you do.You discover how to create a personal monthly budget to control and track spending. It’s about becoming money wise and using financial tools that put you in control of your own destiny.
Meanwhile, a system is set up for convenient monthly payments that are fully secure and fully tracked.To make that lump sum payment, the program asks that you set aside a specific amount of money every month in savings.Debt settlement companies usually ask that you transfer this amount every month into an escrow-like account to accumulate enough savings to pay off a settlement that is reached eventually.Some companies offering debt settlement programs may engage in deception and fail to deliver on the promises they make — for example, promises or “guarantees” to settle all your credit card debts for, say, 30 to 60 percent of the amount you owe.Other companies may try to collect their own fees from you before they have settled any of your debts — a practice prohibited under the FTC’s Telemarketing Sales Rule (TSR) for companies engaged in telemarketing these services.