Numerous companies and independent consultants promise debt consolidation or reduction by way of debt proration. While this is possible, it is not exclusive to the professional. Debt proration can be used by non-professionals as well.
Definition
Debt proration offered by professionals typically involves a legal binding agreement between a creditor and borrower that is customarily brokered by a credit counselor, for the inducement of lowered payments for the outstanding amount due. Living expenses and other personal expenses are usually decreased in order to save more cash for repayment of the debt.
Do-It-Yourself?
Proration of your debt is not exclusively the responsibility of a credit counselor. With a little research, consistency and patience, you can personally prorate your own debt, simply by paying off several small debts, then combining that amount with another monthly payment allotted for a larger debt.
Debt Proration Percentages
According to the the LSU Ag Center, if the percentage of proration is 50 percent, for example, each creditor is offered a prorated payment of 50 percent of the regular monthly payment. It is ill-advised to prorate percentages below 2.5 percent, according to LSU Ag Center.
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