How to Handle Problems With Debt Consolidation

While debt-consolidation companies can help people with unsecured debts avoid bankruptcy, they often have strict payment guidelines for their clients. Clients who have difficulty complying with their debt-consolidation plans could face lawsuits, liens on their property, and they might see their credit scores affected.

Instructions

1

Read the terms you agreed to when you consolidated your debt. Before you take any formal actions against your debt-consolidation company, review the terms of your contract and make sure you fully understand each party's obligations.

2

Provide documentation of your situation. If you are having problems with your debt-consolidation payments because of job loss, health problems or other circumstances, provide written details of your financial difficulties.

3

Get any agreements in writing. Before you agree to any modifications to your debt-consolidation plan, ask for a written copy of the new agreement and read it carefully before executing it.

4

Talk to a bankruptcy attorney. If you are unable to resolve your debt-consolidation problems yourself, consult with a bankruptcy attorney or a lawyer who specializes in financial matters. They can outline your rights and give you advice on how to proceed.