What is Debt Consolidation?
Debt consolidation is an effective method of reducing debt and lowering interest for a more manageable debt load. The most common type of debt that is consolidated is credit card debt. Multiple credit cards with high interest rates can make repayment a difficult task. Debt consolidation offers a solution by taking multiple monthly payments and combining them while lowering the interest rates on eligible debts. The result is one manageable low monthly payment that allows the debtor to regain control of their financial life.
What types of debt can be consolidated?
Only unsecured debts can be consolidated and typically credit card debt is the most common type of debt that is consolidated. Other types of debt that can be consolidated include unpaid medical bills, student loans, and even pay day loans and cash advances. Home and car loans are not eligible for consolidation in most debt repayment programs. Other types of debt which may be consolidated are student loans; however these have special rules and regulations governing them. Home equity loans are some times called debt consolidation loans.
How to find a debt consolidation agency
Debt consolidation agencies are available to help you lower your interest rate on unsecured debt and lower your overall monthly payment. Finding the right debt consolidation agency for you requires that you do some basic research as well as checking the company’s credentials. The company under consideration should have a positive customer rating and a strong history of capable financial advisement. They should have counselors who are certified in their field and experienced in the areas of credit management and finance.
Is debt consolidation right for you?
There are many debt relief options available and debt consolidation is only one solution. This option is best for the consumer who has multiple lines of credit open and needs a simple solution for debt repayment. A debt consolidation will allow for a smaller debt load and more financial stability. By negotiating with creditors for a smaller interest rate, debt consolidation companies assist their customers in realizing their ideal of a debt free life. A credit counseling agency can help you determine whether or not debt consolidation is right for your specific financial situation. Even private student loans may be consolidated in some cases.
Understanding the basics of debt consolidation and what is involved is the first step in deciding whether this debt relief option may work for you. As every individual’s finances differ, a credit counselor can offer strategic financial advice s well as a specific plan for resolving debt burdens. Debt consolidation remains a viable solution for managing debt, creating a low monthly payment and reducing overall interest rates.
Please call us or fill out our contact form for free debt consolidation information now.