What is Debt consolidation?
Although it sounds like a debt consolidation loan, debt
consolidation is entirely different. When most people
talk about debt consolidation they normally are referring
to consumer credit counseling services.
Unlike a debt consolidation loan, your debt is consolidated
and your interest rate reduced without the need for
a loan. This is done through making arrangements with your creditors
rather than taking on additional debt.
Debt consolidation services offer many strong benefits
for people who need help with debt. Debt Consolidation
programs may be able to reduce interest charges, lower
monthly payments, and offer the convenience of paying
one simple bill (and one monthly payment) for all debts.
Consumers who stick with a debt reduction program and
make the regular monthly payments will find themselves
back on the road to financial health.
Click here to explore your options
for debt relief.
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How does a debt consolidation program
work?
Here is how a debt consolidation program works. A consumer
with too much debt contacts a debt professional. A credit
counselor a reviews your debt and financial info to
determine if the program can help you with your specific
debt situation.
A debt consolidation program normally aims to lower
your monthly payments and reduce the interest rate on
your debt. Because more of your monthly payment will
go towards the debt principal (instead of paying interest),
this may help you reduce your debt faster than you could
on your own.
Once enrolled in a debt consolidation program, you no
longer pay your creditors directly. All of your debts
are organized into just account. You pay a reduced payment
to the debt consolidation company and it is much easier
to manage. The debt consolidation company pays your
creditors on your behalf.
Click here to speak with a debt professional
about your options for debt reduction.
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How is a debt
consolidation program different
from a loan?
Debt consolidation loans are where a banks gives you
a loan against your home. They can only be used when
people have sufficient equity in their property, since
the equity is used as collateral. If you do not own
a home or do not have sufficient equity, you will not
be able to get a loan. Often, people who have a lot
of debt do not have enough equity to qualify.
The money from the loan is used to pay off the high
interest credit cards, which can save money in the long
run. However, it is often difficult to get out of debt
by taking on even more debt from a new loan. Be careful.
Failure to pay the loan on time can result in penalties.
Some people who refinance with a consolidation loan
or get a second mortgage end up losing their home in
the process. If you have a lot of debt, you are likely
to have bad credit, which will result in high loan interest
rates. Similarly, homeowners with little or no equity
in their homes also tend to pay high interest rates
and may not make much progress towards their goal of
a becoming debt free life and financially secure.
Debt consolidation loans are not for everyone and do
have risks.
Click here to learn about how to
consolidate debt WITHOUT a loan.
FREE,
for a limited time.
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Why Would My Creditors
Lower My Interest Rate and Monthly Payments For Me?
Well, they are not doing it out of charity that's for
sure. Look at it this way. Some people with too much
debt file for bankruptcy. The creditors are likely to
collect nothing when that happens. They would much rather
collect some of the money than none at all. So, when
a debt consolidation company calls creditors on your
behalf, creditors often are willing to lower interest
rates in exchange for being repaid on the debt.
Click here to learn more about
your debt reduction options
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Call (800) 452-3135 now
or submit your info here to
start explore your options for debt relief
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Is it confidential?
All applications are 100% confidential.
There is absolutely NO obligation for filling out this
form and receiving a free debt analysis by phone.
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