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What is debt consolidation? Debt consolidation restructures your existing debt
with your existing creditors. Money is not loaned, and creditors do not change ---
but the terms and conditions under which the debt can be repaid usually improve
significantly. Under our Debt Consolidation Plan, the monthly payment which is
expected by the creditors is typically lowered. In most cases, interest due to the
creditors is lowered -- and sometimes totally eliminated.
A person qualifying for a debt repayment program will usually find they are making
more progress towards reducing their debt even though they are making lower
monthly payments. Since most creditors report payments received under this plan
as prompt payment, the person's payment history is usually improved by our
repayment arrangements.
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I owe my creditors thousands
of dollars -- can Federated
Financial help me?
You're not alone! Today's average
interest rate is 18.5%, and Federated
Financial's clients carry balances as high
as $200,000, with our average client's
debt being $10,000.
Without Federated Financial's help, it
would take the typical client who makes
minimum payments an average of 32
years to pay off their original debt.
Federated Financial enables them to
become debt free in much less time than
they could on their own -- usually within 3
to 5 years -- with reduced monthly
payments!
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What are the benefits of a debt consolidation program through
Federated Financial? Our program combines two essential elements: The
motivation to get out of debt and the ability to do so. Under such a plan, you
make one convenient monthly payment to Federated Financial, and we disburse
all funds to your creditors. Usually this payment is lower than current minimum
payments, and it is always within your financial ability to pay. When we pay your
creditors, it is almost always at a reduced interest rate, so your payments actually
go toward reducing your debt.
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When we pay your creditors, it's almost always at a lower interest rate. Your payments actually go toward reducing your debt.
Savings shown below make it clear.
All figures below are apporximate for illustration purposes only.
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A COMPARISON
Consider the following dismal
scenarios for those now making only the
required minimum payments without
our help:
At an annual percentage rate of 17 percent
and a minimum payment of 2 percent or
ten dollars ($10), whichever is greater:
A five thousand dollar ($5,000) balance
will take 40 years and two months to pay
off at a total cost of sixteen thousand three
hundred five dollars and thirty-four cents
($16,305.34);
A two thousand five hundred dollar ($2,500)
balance will take 30 years and three
months to pay off at a total cost of seven
thousand seven hundred thirty-three dollars
and forty-nine cents ($7,733.49); and
A one thousand dollar ($1,000) balance
will take 17 years and three months to pay
off at a total cost of two thousand five
hundred ninety dollars and thirty- five cents
($2,590.35).
Because we can generally arrange for
repayment at greatly reduced interest
rates, our clients typically retire
comparable debt in a fraction of the
time, often within three to five years!!
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