Accelerated Debt Consolidation, Inc. Offers Tips on Offsetting the Higher Cost of Student Loans
(PRWEB) July 15, 2013 -- Recently, student loan rates doubled and this is expected to affect approximately 7 million borrowers (Source: CNN News http://www.cnn.com/2013/07/08/politics/student-loans July 10th 2013). While not much can be done about the new higher rates for student loans, getting rates reduced on other lines of credit such as credit cards and unsecured loans can help with the overall cost of paying interest. The major creditors offer reduced rates for credit card accounts and unsecured loans in debt management programs. Most of the major department store accounts are also eligible for debt management program benefits. With this in mind if a consumer needs to take out a student loan with the new higher rates, that same consumer may be able to make up for the higher cost by getting rates lowered on other accounts through a debt management program.
The major creditors have predetermined required percentages of outstanding balances on credit card accounts for fixed monthly payments and offer lower interest rates through the debt management program. There are no negotiations involved with these payment requirements or the interest rates offered. Approved debt management agencies receive updated Biller Directories each week that contain Biller Identification numbers for electronic proposals and payments that are sent to creditors. These directories also contain all of the participating creditors in the debt management program and the new more favorable terms does not vary between agencies. In other words, one agency cannot get different favorable payments terms than another. However, it is very important to choose an agency that performs in the consumers best interest. Entering a debt management program is not complicated but care should be taken in choosing the proper agency. Here are some tips on finding the right debt management agency.
1. The agency must be an approved source with the major creditors and have electronic proposal and payment processing capability.
2. The agency should perform an income/expense analysis with the consumer to determine if the consumer is well suited for debt management.
3. The agency should always check to see if the consumer may need to leave an account or 2 out of the program for continued use.
4. The agency should be able to provide the prospective client with exact payoff times and interest savings on all accounts included and a total for them collectively.
5. If the consumer is current or maybe just slightly behind on their payments the agency should be recommending debt management where accounts are paid in full not “Debt Settlement”
6. The consumer should not get “debt settlement” confused with debt management, they are 2 totally different services. For more info on debt settlement click here.
7. The consumer should always check the agencies record and business report with the Better Business Bureau.
8. The agency should take steps to ensure that if due date changes are required for multiple accounts that this issue addressed properly to avoid late charges and credit score damage.
9. If the consumer has good credit and is current on accounts click here for more info on choosing the correct agency.
10. Click here for warnings about the wrong types of agencies
If the proper steps are followed and the consumer chooses the right agency he or she can offset the cost of the higher student loan rates by getting rates lowered on other accounts. For more info on specialized debt management click here.
Jim Young, Accelerated Debt Consolidation, Inc., 800-810-5250, [email protected]
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