Will Debt Consolidation Without a Loan Help You?
Get Your Free Debt Relief Analysis and Savings Estimate
Are you experiencing financial difficulties and struggling with credit card debts? If so, you are not alone. Many consumers in Ohio as well as in other states are also overburdened with credit card debts and other types of unsecured debts, such as medical bills, department store charges, gas charges, and personal loans. Fortunately, for you and those consumers, there are many debt relief options available - including debt consolidation or a debt management plan (DMP), debt settlement, debt consolidation loans, and even bankruptcy. For many consumers, debt consolidation, debt consolidation loans, and debt settlement are popular alternatives to bankruptcy - which can certainly relieve debt, but has a more damaging and longer lasting impact on one's personal credit.
Compare your debt relief options today. Answer a few, simple questions to get a free debt relief analysis and savings estimate - at no cost to you.
What Are Debt Consolidation Loans?
Depending on their financial situation, many consumers get debt consolidation loans to help pay off their debts. While this approach may provide a measure of relief for some, it is wise to approach debt consolidation loans carefully as this type of loan generally requires you to put up your home (or some other asset) as collateral. Therefore, if you default on the terms of your loan, you could be putting your home in jeopardy. Another risk: Many consumers who get debt consolidation loans typically do not have the discipline to stop using their credit cards, and eventually, they start accumulating new, high-interest charges As a result, many of these consumers end up dealing with new credit card debts on top of their personal loan. Under this scenario, a debt consolidation loan has generally made their debt crisis go from bad to worse.
Debt Consolidation Alternative
Debt consolidation through credit counseling, on the other hand, is fundamentally different from debt consolidation loans. What debt consolidation involves is combining, or consolidating, your high-interest credit card and unsecured debts into a single, more manageable, and more structured monthly payment made to a credit counseling agency. When you enroll in a debt consolidation program, credit counselors review your debts, finances, and overall ability to pay your debts.
When they understand your financial situation, credit counselors generally develop a game plan that can help you reduce your debts. What this typically involves is submitting proposals, on your behalf, to your individual creditors asking for reduced interest rates, or the waiving or elimination of late fees and other penalties. Creditors that agree to these proposals are placed into the debt management plan.
The goal of debt consolidation is to provide you with ONE, easier-to-manage, and more structured payment plan so that you can manage your debts sooner than if you only continued to make the minimum monthly payments at higher interest rates.
Explore your debt relief options by answering a few, simple questions. Start here to request a free debt relief analysis and savings estimate.
Do I Qualify for Savings with Debt Consolidation?
Since every individual's situation is unique, no one - even the experts - can say for certain how much money you can save with debt consolidation. However, the amount of savings generally depends on how much your original debt is, the current interest rates that you are paying, and any late fees or penalties. Keep in mind that with a debt consolidation program, you will be provided with a simplified and more lenient payment plan that is designed to help you pay off your debts at a pace that you can manage instead of continuing to make the minimum monthly payments.
As you explore your debt relief options, make sure that you do your due diligence, regardless of which option you end up choosing. It is generally recommended that you review a company's Better Business Bureau (BBB) rating to find out the company's track record of customer service.
The bottom line is, if you are overwhelmed with credit card and unsecured debts, there is a debt relief option available to help you create a game plan towards reducing your debts and regaining control of your finances. Take the first step by getting a free debt relief analysis and savings estimate - today.