Debt Relief Hotline

Do I have to include all of my debts in my Debt Consolidation Plan?

Many times consumers will ask us if they must enroll all of their debts into a debt consolidation program after they learn that all of their accounts enrolled will be closed with the creditor.  The reason the accounts are closed is to allow the consumer a chance to recover from their debt and start over without having to file for bankruptcy.

No, you do not have to consolidate all of your debts if you do not want to but most of the time that is the smartest decision. Sometimes, we will recommend that you pay off certain debts yourself. This is recommended when the balances are relatively small, when your credit will benefit more by paying the balance in full by yourself, or when it is in your best interest.

You can choose which accounts to enroll in the program but it is always best to enroll all of your debts in the beginning. If you have two or more credit accounts with the same company, then you must enroll both of the accounts or not enroll either. This is called cross collaterization. Basically, a creditor will not understand if you are able to pay one account on your own and not the other.  The creditor feels that since you have the ability to pay one debt, then you will have the ability to pay on the other account as well.

If you feel that you need to keep a credit card for emergency purposes, you may do so but first, let a Debt Specialist show you a better option for those potential emergencies.

To compare this method to others within the industry, contact us now.