Hi. My name is Peter Repak. I'm the owner of Clear Financial LLC. How does a debt consolidation program work? Well, it works very, very simple. What you do, is you send to a consolidation network agency, the money that you owe to the creditors in one lump sum. And they're going to distribute it around your creditors. What you have to know about it also, it's one of the worst things that you can do, as far as debt concern. Here's the reason why. Because when you actually get into a debt consolidation program, the creditors will find out that you're unable to manage your money. That automatically gives a red flag on your credit score. Once it actually has accomplished that, the lender will not lend you money. Because, let alone that your credit score gets a hit, but at the same time, you still owe the same amount of money that you did before. Lenders actually say, it's even worse to do a debt consolidation program, than filing for bankruptcy. Because when you file for bankruptcy, you no longer owe the debt. If you go into a consolidation network, you basically demonstrated you're unable to pay off your debt, and at the same time, you still owe the same amount of money that you owed before. So it really didn't help you. But what you also have to know about it, credit card companies will immediately tell you to go to a consumer credit counseling agency, as soon as you call up their customer service, because the credit card companies are the ones that actually built and made these consolidation network companies. These non-profit companies are the ones that tell you that they are going to be able to get you out of debt within four years. In fact, the average of the consumers that gets into consumer consolidation program, get out of debt in about eight to twelve years. All you do, is you lower your interest rate. You can lower your interest rates just by calling the credit card company. And that's pretty much what you have to know about this, but please do your research about this before you do any major decisions. My name is Peter Repak. I'm the owner of Clear Financial LLC. Thank you for watching.
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