Individuals in financial distress due to failure in repaying their debt can avail facility of debt consolidation plan. Debt consolidation plan works once bank or financial institution approves your application. Thereafter, all your debts are combined into a single loan and bank will take over all your outstanding balances with other banks. Your existing unsecured credit facilities will be ceased or suspended. Bank will fix a monthly installment which you will be required to make to bank to service the debt consolidation plan.
When you buy the best debt consolidation plan, amount to be paid by you will be equivalent to your total outstanding balance including interest and any other fees and/or charges accruing on your accounts. Your regularity and promptness in repaying your debt will help in improving your credit rating.