Adopting a debt consolidation program will help you get out of your debts faster and in a more pragmatic way. With financial advisors to guide you through the process it is just a matter of time when you can be ridden free from your debts.

With the aim of providing a better understanding of the subject I am presenting here a list of some frequently asked questions on debt consolidation. This exercise is aimed towards removing all the myths and misconceptions relating to debt consolidation so that you can judge better as to if this is the best solution for your debt problems or not. Providing a rationale, comprehensive and relevant description of debt consolidation is the aim of this article.

1. What does one mean by debt consolidation?
   Debt consolidation is aimed towards consolidating your small unsecured debts into one single big loan. By doing this you end up with a loan associated with reduced rates of interest. This therefore translates into lower monthly installments which you have to shell out with the aim of repaying your debts.
2. How does the program of debt consolidation work?
   To enter this program of dent consolidation you will have to submit a detailed report of your various debts and bills to the debt consolidating agency. Once your application is reviewd and analyzed you will be contacted by a certified financial advisor and update you with his views and opinions on your debt situation. If you further decide to join the program then your creditors will be approached by the agency and will be subsequently asked to lower your debt. Also you will not be expected to pay for your debts directly to the creditors. In turn you will be paying the money to the agency who will in return pay to on your behalf to your creditors.
3. Why would my creditors agree to lower my debt?
   Creditors would agree to lower the interest rate on your debt because of the fact that you are willing to pay up. The creditors might face more harm in the wake of a default from you and therefore are willing to lower down the interest rate as long as you are willing to repay back the debt.
4. What effect does debt consolidation have on my credit rating?
   The fact that you are willing to opt for debt consolidation with the view of repaying back your debts is taken as a positive step by the credit rating agency and in turn will have a positive healthy effect on your credit report. It will help you in negating the ill effects your debts have had on your credit rating and will help you in making it healthy.
5. What are the qualification criteria’s for this debt consolidation program?
   Generally in most instances you automatically qualify for this program if you have to your name almost $5000 in the form of unsecured debt.
6. What is the selection criteria for the program?
   The financial advisor will carry out a thorough study of your financial situation and will judge your candidature based on the fact that what exactly do you wish to achieve from the program.
7. By adopting this program of debt consolidation how soon can one repay back all their debts?
   The time taken to get rid of all the debt varies from case to case and on the fact as to how aggressive your monthly repayment schedule is. A tougher and stringent repayment schedule might get you out of your debts in as little as a year too.