Debt Consolidation Loans
Are you looking to get relief from your debts, including loans to help with credit card debts and other types of unsecured debts (such as medical bills, department store charges, or even utilities)? If you are, you are just one of many Americans whose debts continue to spiral out of control. Fortunately, many consumers in Tennessee and across the nation are getting relief from debts through debt consolidation through credit counseling, debt consolidation loans, debt settlement, and bankruptcy.
With debt consolidation, you can combine debts spread across multiple credit cards and various unsecured debts into a single, more structured, and more manageable monthly payment made to a credit counseling agency. On the other hand, debt consolidation loans can provide many consumers with a way to combine high-interest debts into one, lower interest loan. Finally, debt settlement can also provide relief by allowing consumers, typically those with high balances on their credit cards, to negotiate with creditors for a significantly reduced amount of what they originally owe. These debt relief methods have become popular alternatives to bankruptcy - which has a more damaging and longer lasting impact to personal credit.
Find out your debt relief options and see how much you can save by answering a few, simple questions here. After you submit the form, you will receive a free debt relief analysis and savings estimate. Start now.
Benefits of Consolidating Debts
The term "debt consolidation" has come to represent a wide variety of debt relief options. Many consumers also refer to debt consolidation as a debt management plan or DMP. But what it typically involves is combining, or "consolidating," credit card and unsecured debts into one, more affordable, and more manageable monthly payment made to a credit counseling agency. The credit counseling agency then distributes funds to creditors. When you enroll in a debt consolidation program, you will speak to credit counselors who will review your finances, taking into account your debts, income, and other obligations.
Credit counselors typically develop a strategy to help reduce your debts, which is typically achieved by submitting proposals (on your behalf) to creditors asking for reduced interest rates, or the waiving or elimination of any late fees or penalties. Creditors that agree to the proposals are placed into the debt management plan.
The goal of debt consolidation is, with a single, more structured, and more lenient payment plan, you can ideally direct more of your payment towards paying off the principal of your loans rather than just the interest - and eventually, reduce your debts sooner than if you only continued making the monthly payments on your credit card debts at higher interest rates.
"What Are Debt Consolidation Loans?"
Many consumers sometimes confuse two different forms of relief - for instance, that debt consolidation is the same as taking out a debt consolidation loan when, in fact, they are fundamentally different. As noted earlier, debt consolidation involves combining your unsecured and credit card debts into a single, more affordable payment plan made to a credit counseling agency. In contrast, with a debt consolidation loan, you are combining your high-interest debts into one, lower interest loan.
A debt consolidation loan involves taking unsecured debt and paying it off with funds that come by way of a "secured" loan - meaning, a loan where you would have typically put up your home or other asset to get approved. In many cases, consumers who get a debt consolidation loan generally end up using their credit cards again. As a result, many of them will have new, high-interest credit card debts to deal with on top of their loan. Under this scenario, a debt consolidation loan has generally made their debt situation go from bad to worse.
When you consider some of the hidden pitfalls that may occur when taking out a debt consolidation loan, it is generally wise to explore your other debt relief options that not only helps you reduce your debts, but also give you some guidance about budgeting your finances.
"Which Debt Relief Option is Right for Me?"
If you have multiple credit card and unsecured debts, a debt consolidation program may be an ideal debt relief solution to help you live within a budget, reduce and manage your debts, and get you on a predictable path to get out of debt. It's important to understand that because every individual's debt situation is unique, the savings amount generally depends on how much you owe, current interest rates, and any late fees or penalties.
The bottom line is, if you are struggling with debts and want to know which debt relief option is right for you, a free debt relief evaluation can provide you with an overview of your options, your projected savings, and projected time to resolve your debts. Begin now by answering a few, simple questions to receive your free debt relief analysis and savings estimate. Start today.