Will Debt Consolidation Without a Loan Help You?
Get Your Free Debt Relief Analysis and Savings Estimate
If you have been searching for a proven way to get relief from your credit card debts, you are not alone - perhaps you have been considering a debt consolidation loan. Many Americans these days are also looking to get relief from debts - from credit cards and other personal unsecured debts - including medical bills, department store charges, or even utilities. The good news is, there are several options available to you that could help you reduce your debts and regain control of your finances.
Your debt relief options include: debt consolidation loans, debt consolidation through credit counseling, debt settlement, and bankruptcy. Depending on the type of debt that you have, one of these debt relief solutions may be able to provide much-needed debt relief and potentially save money by helping you payoff debt or get out of debt faster.
To find out how debt relief can help you, request a free debt relief analysis and savings estimate. Begin now.Understanding Debt Consolidation
What debt consolidation 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. Some people also refer to debt consolidation as a debt management plan, or DMP.
The process of consolidating your debts typically begins with a one-on-one with a credit counselor who will assess your finances - taking into account your debts, income, and other obligations. When credit counselors have all the financial information that they need, they will typically put together a game plan that lays out the next steps for reducing your debts. They submit 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.
With one, more structured, and more affordable payment plan, the goal is to direct more of your payment towards paying off the principal of your credit cards rather than just the interest. Eventually, this form of debt relief helps reduce your debts sooner than if you continued making the monthly payments on your credit card debts at higher interest rates.
If you are interested in finding out how much you can save every month through debt consolidation, request a free debt relief analysis and savings estimate - at no obligation to you.
Debt Consolidation: An Alternative To Loans?
A debt consolidation loan is also another way that many consumers have found relief from their high-interest credit card and unsecured debts. Instead of having multiple, high-interest debts to deal with every month, many consumers end up with only one, lower interest loan. However, keep in mind that a debt consolidation loan involves taking unsecured debt and paying it off with funds that come by way of a "secured" loan.
What this means is, it is a loan where you have to put up your home or other asset as collateral - and if you default on the terms of your loan, you would put your home or asset at risk. In addition, many consumers who get approved for 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.
In comparison to a loan, debt consolidation provides you with a more manageable, more structured, and more affordable payment plan that is designed to help you pay off your debts sooner than if you only continued to make your minimum payments at higher interest rates.
That's why it makes sense to find out how much savings you can potentially get by consolidating your debts and paying them at a pace that you are comfortable with.
Start by requesting a free debt relief analysis and savings estimate - at no cost to you.