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Advice on Switching From One Debt Consolidation Program to Anoth

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Mark Cappel
UpdatedJun 11, 2024

Is it possible to transfer from one debt consolidation program to another?

I am currently in a debt consolidation program, but if i can get my debt paid off more quickly then I am all ears. I also have a few bills outside of my consolidation program that I would like to jumble all together. Is it possible to get my bills paid off quicker through this program, and is it possible to transfer from one debt consolidation program to another?

The term "Debt Consolidation" is widely used, and misused, in the financial services world to mean several different debt relief options. From your question, it is difficult for me to guess the type of program you are enrolled in; which could be any of the three that I will explain in brief below.

The most common, and probably the most accurate, usage refers to debt consolidation loans, wherein a consumer takes a single loan, usually secured by his home or other property, to pay off several other creditors. Debt consolidation loans are designed to lower the overall interest rate on debts, and to allow the consumer to make a single monthly payment to one creditor instead of paying multiple creditors. If you have opted for a consolidation loan, then you can surely move to another loan, if it benefits you by way of lower interest rate. To read more about debt consolidation loans, you should visit the Debt Consolidation Loan Resources page.

The second most common debt relief option called "debt consolidation" is consumer credit counseling. Consumer credit counseling service (CCCS) companies attempt to negotiate lower interest rates and monthly payments for consumers. If you enrolled in a CCCS program, you would pay the CCCS firm a single monthly payment, which would be dispersed to your creditors based on a pre-determined repayment schedule. If you are enrolled in a CCCS program, whether or not you can move to another program really depends on how long you have been in the program. CCCS firms charge a monthly fee for their services, so all the fess paid would be non-refundable. If this is not a problem then you can sure switch to another program. Also, bear in mind that only certain form of debts qualify for a CCCS program, such as credit cards and unsecured loans.

Debt settlement programs are also frequently called "debt consolidation". In these programs, you save money monthly to negotiate settlements rather than making monthly payments to your creditors. In the months that you are saving money to negotiate with your creditors, your accounts will be listed as delinquent on your credit reports. However, the benefit of these programs is that they can often result in significant reductions in the balance of your debt, sometimes reducing your debt to 40% of what you previously owed. Many consumers find this benefit well worth the temporary negative impact on their credit scores. If you are currently enrolled in a debt settlement form of a debt consolidation program, while technically you can switch to another settlement program, it is not advisable to do so unless you are willing to forego the retainer fees that you have paid them already. Again, there are limitations to the kind of debts you can enroll into a settlement program (only unsecured debts qualify). offers a wealth of information about debt settlement and other debt relief options.

I suggest you do your research well in deciding the option that you want to pursue and stick to it till your goals are met. I hope the information I have provided helps you Find, Learn, Save.



Dealing with debt

Debt is used to buy a home, pay for bills, buy a car, or pay for a college education. According to the NY Federal Reserve total household debt as of Q1 2024 was $17.69 trillion. Auto loan debt was $1.62 trillion and credit card was $1.12 trillion.

According to data gathered by from a sample of credit reports, about 26% of people in the US have some kind of debt in collections. The median debt in collections is $1,739. Student loans and auto loans are common types of debt. Of people holding student debt, approximately 10% had student loans in collections. The national Auto/Retail debt delinquency rate was 4%.

Each state has its rate of delinquency and share of debts in collections. For example, in Arizona credit card delinquency rate was 3%, and the median credit card debt was $441.

To maintain an excellent credit score it is vital to make timely payments. However, there are many circumstances that lead to late payments or debt in collections. The good news is that there are a lot of ways to deal with debt including debt consolidation and debt relief solutions.



BBill, Nov, 2008
You need to report these calls to your debt settlement firm. They need to keep a record of these calls. Remember that your creditors still have the right to call you to collect despite the fact that you are enrolled in a settlement program. Usually, settlement firms will send "cease communication" notices to your creditors on your behalf, speak to the customer service to see what needs to be done.
KKim, Nov, 2008
My husband and I are enrolled in the third consolidation plan you list, with Franklin Debt Relief. We're being inundated with phone calls, both at home and at work (especially me). How can I stop these phone calls? I already feel bad enough we're having to do this, but it's a necessity as we just couldn't pay even our minimum payments without continuing to use credit for other bills. Please advise.Kim