When you think of nonprofit debt consolidation companies, you would probably think they do not charge you anything.
This is not the case.
They do charge you a fee for their time and services they provide to help you pay off your credit card debt.
But just exactly how much does debt consolidation cost? There are several costs you need to consider when you are thinking about debt consolidation.
It's not just the financial costs.
It's also the time cost.
When you consolidate your debts with a consolidation company it can take you up to 60 months or five years to complete the program.
Because every state has different rules and regulations, there is no one set cost that applies to every consumer in every state.
So if you live in Idaho you could be paying $25 a month for consolidation services or you could live in Texas and pay $50 a month.
These are just examples.
But to give you an idea of how much consolidation costs, you can expect to pay anywhere from $25-$50 a month while you are enrolled in the program.
Another financial cost you will pay when using consolidation is a lower credit score.
The credit reporting agencies count a debt management plan as a negative on your credit report.
Once you complete the program though, your credit score will start to increase because you have no more credit card debt.
This will help you qualify for better rates on mortgages and car loans and even credit cards when you debt free.
Now you know how much debt consolidation can cost you and you are ready to get started consolidating your bills.