Debt Consolidation

Financial tension can be overwhelming when you are unable to meet your monthly payment terms. If you are experiencing this tension, consolidating your debts may be a sensible choice for you. Find out the advantages and disadvantages, and review tips to make it work for you.

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What is Debt Consolidation?

Debt consolidation is the process of consolidating, or combining, your various debts into one monthly payment that you can afford. A debt consolidation company that you choose will work to negotiate with each of your individual creditors to lower your interest rates or to spread your payments out over a longer period of time, or both.

Is Debt Consolidation the same thing as a Debt Consolidation Loan?

Debt consolidation is not to be confused with a debt consolidation loan. Traditional debt consolidation programs allow the consumer to reduce the interest rates on their unsecured debt obligations to pay off what they owe over a shorter time period, without having to borrow money to do so and without creating additional credit repercussions.

What factors should I consider if I would like to consolidate my debt?

When deciding to use debt consolidation, it is best to shop around for a suitable arrangement. You will want to consider the debt consolidation fees, the amount due upfront, interest rates, length of payments and of course, any fine print or hidden costs and terms. After speaking with a few different companies, you will be able to determine what the best choice is for you.

Consolidate your debt and lower your monthly payments now >>

Debt consolidation should not only lower your monthly payments, but it should also be a financially beneficial choice for the long haul. In other words, it might feel good in the moment to get a lower monthly payment, but if you are now paying debts off for 6 years instead of 4, and you are now paying 1/3 more for your overall debt because of this, then it is not actually alleviating debt.

There are many things to consider. Don’t be afraid to ask questions, talk to variety of companies and become involved in the process of consolidating your debts. The more involved you are, the easier it is.

Who are the best candidates for Debt Consolidation?

Debt consolidation works best for gainfully employed persons, with a steady and reliable income. If you are having a hard time paying your minimum monthly payments on several different credit cards or debts, and accruing a high interest rate yet gainfully employed, debt consolidation may be an intelligent choice for you. If you are having challenges paying your rent, mortgage and daily living expenses, such as gas and food, you may want to choose an alternative method to relieve your debts.

How can Debt Consolidation help me?

If used correctly, debt consolidation can help to maintain or improve your crediting rating score, while allowing time for your finances to get back on track. This method may take you longer to pay off your total debts, yet if you find that you have fallen behind on your monthly payments, it may save your credit rating and assets before the need arises to get a loan or file for bankruptcy. Debt consolidation can alleviate current financial pressure and allow you to find a financial balance.

Consolidate your debt and lower your monthly payments now >>