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Consumer Debt Consolidation: An Effective Way To Debt Freedom
Millions of Americans find themselves in an unsustainable financial position every year, usually because the amount of money that it takes to keep all of their bills current and to take care of living expenses is now greater or equal to the amount of income coming in every month. Just paying the minimum amount that is due on your credit cards each month will get you absolutely nowhere. If your credit cards are maxed out and you only make the minimum payments that are due, it will literally take you 25 years or more to pay off most of your credit cards! So, simply going month to month in this same situation will not lead you anywhere at all, it is just a waste of your time. Many people in this situation consider bankruptcy, however, bankruptcy is not for everyone.
Types of Consumer Credit/Debt Consolidation
There are a few different ways that consumer credit debt consolidation can be achieved. Some are:
- A Home Equity Line of Credit or Home Equity Loan can be used to pay off your debts all at once, leaving just the equity loan to be repaid at the interest rate that is negotiated at the time of the loan.
- Cash-out mortgage refinance to use as a debt consolidation loan. This is a mortgage refinance where you take out extra cash to pay off your bills with. One thing to remember here is that if you refinance for 30 years, now you will be paying on that debt still for another 30 years.
- A Debt Consolidation Loan is also a form of mortgage refinance where the lender will take into account that you are paying off your bills when they refinance your mortgage and give you part of your equity to pay your credit cards and other bills off with.
The down side to using your home’s equity or refinancing your mortgage in order to pay off your bills is that you are not really getting rid of the debt, you are only moving it for your credit cards to your house. This will make your mortgage payment go up and it will make it take longer to pay off your house. The up side is that you can also pay off secured bills, such as your car loan, with one of the loans mentioned above.
There is no charge to speak with a debt consolidation expert to find out what your options are. Simply complete our consultation request form.
There are pros and cons of every type of credit card debt consolidation program. You should take your time to study them along with the terms and conditions mentioned by each. This can facilitate your decision about which types of credit consolidation services are going to help you the most at minimizing your consumer debt.
Consumer Credit Consolidation Advantages
Some of the major benefits of consolidating consumer debts through debt consolidation are as follows.
- One monthly payment replaces multiple unsecured bills like medical bills, credit cards, gas cards, and store cards.
- Consolidating credit card debt reduces mental stress because you have help in working with your creditors.
- The collection calls from the creditors and collection agencies will stop.
- The interest rate on your unsecured debts and credit cards can be reduced, so more of your monthly payment will go to paying off the principal balances.
- Some credit card companies and other creditors will drop their late payment and other penalties and fees.
- It becomes easier budget your monthly expenses, because with one monthly payment, you know what to expect.
- Now that your bills are never late, as they are being paid by the debt consolidation company, with each month that goes by, your credit score will actually go up!
What is Non Profit Consumer Credit Counseling?
Non-profit consumer credit counseling is NOT debt consolidation, although it is commonly confused with it. A non-profit credit counselor will look at your debts, income, and expenses and will help you to draw up a budget that works for you, so that you will be able to pay your bills and living expenses every month with the income that you have right now. Non-profit consumer credit counseling will not in any way eliminate your debts in the way that a debt consolidation service can. Non-profit consumer credit counseling will, however, show you how to live within a budget so that you can pay your creditors on time every month.
Our Debt Consolidation Services
Once you complete the debt consolidation quote request form on this website you will be contacted for a free consultation session with one of our expert debt consolidation counselors. They will show you how easy it can be to put your debts behind you.
The expert debt consolidation professionals in our nationwide network are not like other credit consolidators. They have a case specific approach and recommend a specific debt management plan only after thoroughly analyzing your financial situation. Our debt consolidation services will help you to see that you can be free of debt just as soon as you want to.