It’s also a good idea to stay clear of websites and lenders that charge you big upfront fees for a debt consolidation loan.With a debt management plan, you make one monthly payment to a credit counseling agency and the agency pays each of your credit card lenders.And you can verify if a lender is registered to do business in your state by contacting your state Attorney General’s office or your state’s Department of Banking or Financial Regulation.Beware of any lender that promises to offer you a loan regardless of your credit.The best way to consolidate credit card debt — and whether consolidation will work for you at all — depends on your situation, so you might want to consult a non-profit credit counselor about your best options.The following five tips can help you figure out which credit card consolidation strategy suits you best.Failing to pay a personal loan as agreed will hurt your credit, so stay on top of your loan payments and work to Credit card consolidation can affect your credit in many ways, depending on which strategy you choose.For example, if you’re consolidating multiple balances onto one card, you’ll want to avoid maxing out that card’s credit limit, because that will hurt your credit utilization rate (how much debt you’re carrying compared to your total credit limit).
(Payment history accounts for 35% of traditional credit scoring models.)Transferring credit card balances, paying off credit cards with a personal loan or enrolling in a debt management plan is only the beginning of credit card debt consolidation.Then you’ll only have one monthly payment: the loan, the credit card or the debt management plan.Not only does that simplify your debt payments, it can also help you save money.A lender may lower the interest rate on your credit card balance when you participate in a debt management plan.
Debt management plans typically last three to five years.
Collect, post and reconcile patient payments efficiently with funds deposited into your bank accounts and payments posted into your existing source A/R systems.