Debt Consolidation Loans - Michigan
If you have been desperately searching for ways to get relief from your credit card debts, you may have considered getting a loan. If so, you are like many Americans today looking to get relief from debts - from credit cards and other unsecured debts such as medical bills, department store charges, or even utilities. The good news is, there are several options available to you that can help you reduce your debts and regain control of your finances.
Your debt relief options can include debt consolidation loans, debt consolidation through credit counseling, or debt settlement. Depending on the type of debt that you have, one of these methods may be able to help you get a better handle on your debts as well as potentially get some savings.
To find out how debt relief can help you, request a free debt relief analysis and savings estimate. Begin now.
How Does Debt Consolidation Work?
In the debt industry, the term "debt consolidation" has come to represent a range of debt relief options (not to be confused with a debt consolidation loan). However, 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 review 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 a single, 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 - and eventually, 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. from MichiganDebtRelief.org.
Debt Consolidation: A Better Alternative Than a Loan?
As mentioned earlier, a debt consolidation loan is also another way that many consumers have found relief from their credit card and unsecured debts. With a loan, instead of having multiple, high-interest debts to deal with every month, many consumers end up, ideally, with only have 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 to get approved - 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 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.
Find the Best Debt Relief for You
It makes sense to compare your debt relief options and find which one works best for you. For instance, ask yourself or a debt relief expert questions like "How much savings could you potentially get by consolidating your debts and paying them at a pace you are comfortable with as compared to taking out a loan?"
Start comparing your relief options by requesting a free debt relief analysis and savings estimate. - at no cost to you.