Agents

Debt consolidation agents or agencies are people with expertise on the financial field that take charge of people’s debts and negotiate with lenders in order to obtain better terms. The final purpose of this process is still the combination of the different debts.This consolidation agents will provide that result either by taking care of the different debt payments in exchange of a unified fee or by finally providing a debt consolidation loan of some kind to cancel all remaining debt. The monthly payments of the new consolidation loan are the equivalent to the fee. Thus, there is little practical difference.Yet, there is a huge legal difference because with a debt consolidation loan, the new lender is the sole creditor of the debtor.
Debt consolidation implies many different practices and varies according to the needs of the applicant and the state of the debt. It’s not the same to solve debt problems when debt is handled by a collection agency than when it remains with the original creditor. However, good consolidation agencies have legal advisors too that can handle debt under more complex situations like court processes.