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Our debt management plan allows you to include unsecured debt such as credit cards, department store cards, personal loans, past due medical bills & past due utility bills. So for debt consolidation help, free of debt, relief programs to avoid bankruptcy or alternatives to bankruptcy. PDS then negotiates with creditors to lower the interest rates. We then consolidate all bills into one easy monthly payment & often times reduce monthly payments up to 50%. Then you make one affordable monthly payment, which we then disburse to your creditors. Regardless of financial status, everyone can benefit from our ability to get interest rates lowered or eliminated. We help you to avoid bankruptcy, improve your credit, & stop the harassing calls from your creditors.
Once enrolled, you will be provided with a personal, professional counselor who is experienced & empathetic when it comes to understanding your financial circumstances; Practical Debt Solution’s counselors are IAPDA certified & highly trained to establish a financial plan that will meet your needs & help to realign your financial well-being.
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How does the debt consolidation program work?
Credit Cards are under a revolving credit payment plan. They are designed to keep you in debt, resulting in your paying an extraordinary amount of interest while trying to pay them off. Under these circumstances, most people will end up paying between 15 & 30 or more years. This means they will usually pay out 5 to 6 times what they originally borrowed. By changing from a revolving account to a fixed payment plan, along with a lower interest rate, most of your money is now applied to your account balances instead of finance charges, reducing your total payout term to 4 - 6 years.
Why is debt consolidation better than a loan?
Borrowing money to pay back borrowed money is economic suicide. If you are able to qualify for an unsecured loan to pay off your unsecured debt (most people do not) you are basically borrowing from Peter to pay Paul. If you take out a secured loan such as a home equity or second mortgage, you are attaching your current unsecured debt to something of value such as your home. The average interest rate in consolidation program is 6 to 8 %, which is usually less than most mortgage loans today.
How will debt consolidation affect my credit?
Our agency does not report to any Credit Bureaus. If you are current with all your bills and have a good credit rating, the creditor’s policies stay virtually unchanged. As long as you make your monthly payment on time, the payments to your creditors are considered on time. On the other hand, if you are over extended & have a  poor debt to available limit ratio, paying off your debts quickly will improve your credit worthiness. If you are behind with your bills, the program can help bring them current by re-aging the account. With timely payments your payment record will improve as well as your debt to available limit ratio.
Can I quit the program?
Yes. However, if you do decide to quit the program, the interest rates will go back to what they were before you started.
Is this a loan? - Do the creditors get paid in full?
No. This is not a personal loan to you. There is no cash in hand. All your money is disbursed directly to your creditors at a lower or zero interest rate. PDS & its servicing agents are hired by you to do two things. 1) Set up & establish a new payment plan with your creditor(s) that suspends your original terms & will help you get out of debt by lowering or eliminating your current interest rates & 2) Consolidate your bills into ONE low monthly payment.
Who needs our service?
Any individual or family that is experiencing problems keeping up with their bills, high interest payments, or simply seeking to rid their life of their financial burden would benefit from our services.
I have debts prior to marriage, Can I do this alone?
As long as you were the only signer on the debt & it is in your name alone, you can enroll in the program individually.
How is my payment determined?
Each creditor requires a minimum payment to qualify you for the program. All creditors have different requirements for acceptance. The payment is based on your particular mix of creditors & your balances.
Are creditors willing to work with your program?
Yes. Your creditors want to be paid. They also understand when a client contacts a debt consolidation company; they may also be considering bankruptcy.
What is the difference between non-profit and for profit organizations?
There are many financial firms offering a debt consolidation program today. Many of these companies are "for-profit" or unregulated businesses. If a company is not being subsidized by the creditors, they must collect all operating costs from YOU the client. This resulting in much higher monthly service charges that can sometimes be very close to the interest they claim to be saving you. Also many creditors will not work with for-profit companies or give the same concessions to their clients. When enrolled with Practical Debt Solutions, your account is handled by our 501C “non-for-profit” servicing agent, establishing a strong relationship with your creditors & receiving the lowest payment & interest rates without any negotiations.
How do I get started on the program?
We offer an online creditor listing form for your convenience. Just click on the Apply now link, fill out the requested information & submit it. You will promptly be contacted by one of our Certified Debt Specialist.
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Pay off debts quickly