Take Control of Your Finances
Are you trying to get free from your debts – maybe a lower payment to cut interest rates, consolidate debts into one, or just get debt free fast? We have the tips and resources you need to choose the best debt consolidation option for your situation so that you can starting saving money today. The topic of debt consolidation can be confusing and overwhelming. Get a free quote here, or read on and learn your options:
Free Debt Consolidation Quote Although, it typically involves a loan, it can also feature a credit counseling program or other programs that do not involve a new loan. This is why it is important to know what your options and goals are before choosing a debt consolidation program. That’s where we come in. We have all the debt consolidation resources you need to help you choose a plan that is right for you. Get a free savings quote, take a look at the debt consolidation video, ask a specific question about debt consolidation or read more debt consolidation articles.
Debt Consolidation Questions
What is debt consolidation?
Debt consolidation is a solution to stopping your debt from spiraling out of control. Debt consolidation doesn’t reduce your debt; it merely eliminates multiple high interest rates associated with debt from various lenders. A debt consolidation loan is one viable solution to consolidating your debt. In this situation, you basically get a loan to pay off all your various debt or get a better type of loan (changing from an ARM to a Fixed rate loan).
What do I need to consider if I want to consolidate my debt?
The one thing you need to consider regarding debt consolidation is whether or not you can aggressively start paying off your debt via debt consolidation. Remember, debt consolidation doesn’t reduce your debt; it just helps it be more manageable. So, you need to analyze your finances to see if you can truly start paying off your debt. See where you can cut back on your expenses. You’re going to have to make some personal sacrifices if you want to get out of debt. If even after you analyze your finances and you just can’t seem to set aside enough each month to significantly pay down your debt, debt consolidation might not be the solution for you. In this case, you’re going to want to consult a debt counselor.
How does debt consolidation work?
Usually done in consultation with a counselor or loan officer, a consumer consolidates all of their debts into one loan or one repayment plan. Debt consolidation can be a great form of
debt relief to start tackling your debt – whether it’s just lowering your rates, getting a better loan, or cutting your payments to get debt free faster.
Glossary of Debt Consolidation Terms
Debt Consolidation: Taking multiple debt or credit lines and consolidating them into one new payoff plan. Frequently, this is a consolidation loan, provided to consolidate debts into one loan with one payment, typically shifting credit card debts to secured debt by refinancing a mortgage. It could also refer to a credit counseling or debt settlement program.
Credit Counseling: A third party managed payoff strategy where your interest rates are lowered to the bank's concession rate and thereby your monthly payments decline. Typically, a credit counseling program runs around five years to getting debt free, but each consumer's experience depends on their own creditors and the size of their payments.
Debt Management: A service provided by an agency that provides debt help services, including credit counseling, debt settlement, and debt consolidation loans. Most people refer to a Debt Management Plan as a plan administered by a credit counseling firm.
Debt Settlement: A program for negotiating and settling consumer debt to a discount to face value. Frequently, resulting in lower payments, lower debts, and a short period to debt freedom while avoiding bankruptcy.
Bankruptcy: A type of aggressive consumer debt resolution where you attempt to either liquidate your debts through a chapter 7 bankruptcy, or re-organize your debts into a payment plan through a chapter 13 bankruptcy.