How does our debt consolidation process work?

Once you contact us:

  1. You will work with my assistant, who will take down the details of all your debt collectors.
  2. I will review your file and contact your creditors. I will inform all of them that they cannot harass you anymore.
  3. Most of the creditors, once they know I am representing you, will consolidate the debt at very favorable terms.
  4. I will have you work with my assistant to make payments to the creditor.
  5. You will be debt-free in six to nine months.


I have helped people like you:

  • Reduce monthly payments
  • Make one monthly payment to your creditors
  • Eliminate late fees, advance fees, extra fees
  • Reduce or eliminate collection calls
  • Reduce annual percentage rate
  • Avoid lawsuits

Debt consolidation is the simple process of combining debts into a favorable and single monthly payment plan.

This debt relief option is not suitable for everyone. When used inappropriately, it can backfire. So, for your own benefit, it's essential to understand when it will provide the best results.

So when might you benefit from debt consolidation? It's when:

  • You're disciplined enough to curb impulsive spending habits
  • You are determined not to run up more debt
  • You have decided to live within your means from now on
  • You don't want to borrow money from banks or family members
  • You want to become debt-free within six months.

Here are a few reasons for choosing OVLG to be your debt consolidator. OVLG:

There are many ways to consolidate debt.

One way is to use a low-interest rate debt consolidation loan from a bank or credit union to consolidate credit cards into an affordable monthly payment. A debt consolidation loan has strict criteria. If your credit score is low, you may only qualify for secured consolidation loans. This means you would have to put something up for collateral and risk losing that collateral if the loan goes into default.

With the balance transfer method, you can transfer your accrued balance on high-interest credit cards to a card with a low-or-no interest introductory offer, which will expire after 12 to 18 months. Then, you aggressively pay off the balance to zero it out before the introductory rate expires. At this point, the interest rate usually sets to around twenty-one or twenty-two percent—not rates you want to be trapped in. So, if you use this approach, make sure you pay off the balance before the interest rate spikes.

The risk of the credit card balance transfer approach cannot be overstated: if you can't pay off the balance in time, your interest rates skyrocket. If your FICO score is low, chances are you won't qualify for the low-or-no interest cards that make the strategy work.

Finally, you can enroll in a consolidation program to get the lowest rate available on your debts.

A debt consolidation program is the best option for several reasons.

  • It doesn't have strict eligibility criteria. You can qualify if you're 18 years old and can make monthly payments to creditors.
  • The process is quick and easy.
  • There's no collateral.
  • There's a fixed interest rate.
  • You can qualify for it even if you don't have an excellent credit score.
  • You will have an idea of the estimated monthly payment and set aside money accordingly.

Credit card debt
Payday loans
Collection accounts
Unsecured debt
Medical bills
Utility bills

You can consolidate private student loans with a consolidation loan. For federal student loans, you can enroll in the various student loan consolidation programs.

You may wonder, "I need to consolidate debt, but my credit is pretty bad. Will I qualify?"

This is a common question. Fortunately, the answer is yes. With a consolidation program, you don't need a good credit score to qualify. You can consolidate all your debt even with bad credit. Even better, taking that simple action can help you improve your credit over time. When you make on-time payments to credit card companies, your credit score will start to increase gradually.

Of course, the benefits of this debt relief option only apply if you make your monthly payments. If you don't consistently make the required monthly payments on time, you won't get out of debt, and your credit score will never improve. It's best to enter a debt consolidation program with the determination to make the monthly payments and improve your financial life for the long haul.

There are various ways to consolidate your debt, and a personal loan is one of them. You can use a personal to combine high-interest debt into one payment at a low-interest rate. Usually, personal loan rates are lower than those of credit cards, which helps you save money. However, if the interest rate is higher than the rates on credit cards available to you, this is not a good option.

Debt consolidation services help to alleviate your financial burden by lowering your interest rate on credit cards. They don't change the way credit cards work or require you to close your accounts. Some people choose to close their credit cards after consolidating debts. This can help decrease the risk of getting further into debt. But it's not mandatory. Just like you can choose where and how to consolidate debt, you can decide whether or not to keep your credit card accounts open.

Should you consolidate debts when they are in collections? Is that even possible? The answer is you can, and you should.

When you ignore collection accounts for more than a month or so, you're likely to get sued. When you get sued, you'll very likely lose the case. That means the collection agencies win the legal right to garnish your wages or impose a lien on your property. In other words, they get to make you pay them.

The best-rated debt consolidation companies can help you avoid that situation. They will negotiate with collection agencies and create a repayment plan where you can pay off the amount you owe in easy monthly installments, helping you avoid lawsuits and extra fees.

If your credit score was below 500 before using debt consolidation services, then you may have difficulty qualifying for a mortgage. Federal Housing Administration (FHA) mortgages are common among new buyers and require that you have at least a 500 credit score. Conventional private mortgages, the main alternative to FHA loans, have higher requirements: usually 620.

When you initially enroll in a debt consolidation program, your credit score may drop. But regaining control of your finances allows you to do the things that drive your FICO score up. You will be able to focus on things like paying your bills on time and repaying your debts in full. These financial habits cause your credit score to go up and increases your access to home loans.

It's simple, really. Once you pay off your creditors, they don't have a reason to garnish your wages. Even better, the courts will usually take it a step further and issue a release judgment requiring them to stop!

At that point, collectors or creditors who continue to garnish your wages will be in violation of the law, and you can turn the tables on them by taking legal action of your own! In our experience, that's not usually necessary, though, as most collectors will stop when ordered.

Can debt consolidation stop wage garnishment while you still owe on your loans? You can, but you may not like how it works. If you plan to use debt consolidation as a tool to stop wage garnishment, your best bet is to save a lump sum to devote to the process.

Why? Without something to put down, it's much more challenging to negotiate with creditors. Creditors will always want the best deal they can get, and wage garnishment is a pretty good deal for them. But if you can put a chunk of money down on your debt consolidation offer, it will put you in a better negotiating position.

For example, we call your creditor to make an offer on a $10,000 in debt. Which offer do you think your creditor will be most likely to accept: no money upfront or $1,000 upfront? Clearly, we have a better chance to stop wage garnishment with the cash offer. That's how it works.

The difference lies in how the relief is set up and its effect on your credit score. With debt consolidation, payments are made to your creditors as soon as you start making payments on the plan. Over time, that will help improve your credit score. With debt settlement, your settlement company will negotiate with your credit card company once you save about half of your credit card balance in a dedicated account. Your credit score won't move until sometime after that when the debt is negotiated and paid off.

Of course, in either case, once you have paid the debt, you need to check your credit reports to make sure it is properly listed as "paid in full."

Well, there's good news and bad news.

The good news is that, yes, you can consolidate bills even when you're unemployed. It can still be a good plan.

The bad news is that the best debt consolidation options won't be available to you. Without a reliable source of income, lenders won't be willing to give you a low-interest debt consolidation loan due to the risk it would pose. But there is another option: you can consolidate your debt by transferring your loan balance to a credit card with a low introductory interest rate. In that case, you will need to have a plan to pay off your debt within 12 to 18 months, or you could face very high-interest rates on your remaining balance.

With a debt consolidation plan, you need to prove your ability to make the required monthly payments. That's what makes being unemployed such an obstacle. However, if you're self-employed, with a verifiable source of steady income, that's a different story. You shouldn't have a problem lowering your interest rate and payments through a debt consolidation loan.

Last Updated on: Wed, 28 Apr 2021

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