Credit consolidation loans are a financial tool that people often mistake with other types of debt solutions e.g debt settlement and debt management. Before making that bold move of consolidating your debt with loans, understand it first. You see, it's a way of piling up all your debt into one debt pile (now that's according to layman's language). And you can also achieve this through transferring all your credit card debts to that one credit card, with apparently low interest rate, or taking a home equity loan, referred to as a credit consolidation loans etc.
Non of the above options is safe as far as your financial health is concerned. In as much as credit consolidation loans make sense in some cases, it's not a holistic solution to problems related to your debts. In fact, according to Liz Pulliam Weston, a financial advisor at MSN Money, your current financial arrangements may work just as well, compared to debt consolidation loans. So let no one trick you into these loans.
People who find themselves in debts tend to think that consolidating with loans will help save some money and reduce monthly payments. However, it's exactly the opposite--they may do nothing other than stretching your loan over a long period of time. If you find that your monthly payments are smaller this time under a credit card consolidation arrangement, it's because you've extended the time to repay, meaning it will take you longer to pay them off. The disadvantage is very obvious-it will cost you high interest rates because of the extended term.
Debt Consolidation Loans Risk Your Home
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Again, don't be tempted in anyway to think that transferring your debt to a credit card with a low introductory rate could work. Though it's a good idea, it has setbacks too. Once the introductory rate ends, then the rates could escalate so that you end up paying more than you did with your first credit card. And if you use this new card for purchases, it could accrue higher rates of interest too. On the other hand, if you opt to pay only the minimum on your credit card, you could repay your loan for years, if not decades. Furthermore, consolidating all your debts into one credit card will lower your credit score.
Debt Consolidation Loans In America
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Getting a home equity line of credit may get you a lower interest rate compared what you are currently paying on your debts. But this approach is risky as your home is now on the line. Should you miss your payments, you could lose your home. If you're dangling deep in debt and even on the verge of bankruptcy, remember, your debt can be erased, but your home loans won't.
Instead of jumping from the frying pan to the fire, fill out the free consultation form at the top of this page to get in contact with a debt counselor. They will advise you appropriately on whether or not credit consolidation loans are good for your situation. The Consultation is absolutely free.
Since 2001, American Debt Resources has been providing consumers with tailored plans suited to meet their specific financial goals. We understand the core of any person's financial well being is the creation of a sound budget, the elimination of excessive debts, and saving for the future. Maintaining stability in your personal finances should be taken very seriously and with our help you will learn to make that a priority.
Don't wait, call today and speak with a counselor about our free debt analysis, or complete our online application and a counselor will be in contact with you shortly.
The following services assist consumers meet their financial goals.
Debt Management Programs (debt consolidation) - Debt management programs will consolidate your unsecured debts into one affordable lower interest payment. You will be able to pay your debts off within a realistic time frame and preserve your credit at the same time.
Bankruptcy Counseling - provides the mandatory counseling and issue the certificates of completion for both pre bankruptcy and post bankruptcy (debtor education) counseling.
Housing Counseling (Pre-Purchase, Post Purchase, Mortgage Delinquency) - American Debt Resources provides a wide range of housing counseling services. Our objective is to provide assistance at all levels of homeownership. Counselors are ready to help you evaluate your situation and set obtainable goals.
Budget Planning & Credit Report Review - As a licensed budget planning agency our certified counselors help clients create and maintain a suitable budget. Additionally, counselors will help clients read and understand their credit reports suggesting ways to improve and maintain a healthy score.
Remember, you're not alone help is only a phone call away.
Debt management programs are designed for consumers who are experiencing difficulty keeping up with their financial obligations. Through a DMP, your unsecured debts will be consolidated into one affordable, lower interest, monthly payment. You make one payment a month to this office in an amount needed to satisfy your creditors. Keep in mind that you decide when your payment due date will be. This allows you to schedule your payment so it does not interfere with other monthly obligations. We then disburse it to your creditors.
While on the program, you will enjoy long term lowered interest rates which helps you pay off the debt in less time than if you were handling the bills on your own. The lowered monthly payment will allow you to tend to other things in your life and budget, or, if you choose, you can pay extra. Eligibility on a DMP is determined during a credit counseling session with a certified credit counselor.
DMP enrollment not only consolidates unsecured debts into one payment but also provides financial education designed to help avoid making similar choices in the future.
The professional staff of Certified Credit Counselors have been trained to act as a liaison between you and your creditors. We have developed an extensive rapport with your creditors that allows our office to receive numerous benefits on your behalf.
You get to decide when your monthly payment will be due in order to avoid interfering with other monthly obligations. Additionally, your repayment term will be shortened allowing you to set other long term financial goals.
As your payment arrives each month the office will promptly distribute the funds to your respective creditors. Unlike other debt consolidation loan agencies, the office can disburses client funds on a daily basis rather than once a month. This is done to avoid unnecessary late fees and accrued interest that may occur by missing creditor due dates. Each month you will continue to receive your monthly statements from your creditors, which will indicate the arrival of your payment as well as the readjusted interest rates. Your financial information will be kept strictly confidential and only your creditors with the proper authorization will be able to access it. The only thing we want you to be concerned with is that you make your monthly payment on time so we can promptly distribute it to your respective creditors.
The benefits extended by your creditors to the office carry rates that are usually lower than what a bank offers on their credit consolidation loans. Even if you have poor credit or have been turned down elsewhere, we may be able to help. Many clients, before entering the program, were unable to obtain loans from a bank because of high debt ratios, a derogatory credit report, or not enough home equity - Debt consolidation loan
Debt Consolidation Programs Available Nation-Wide
The following is just a sample of some of the locations our debt consolidation programs are available in.
Buried in Debt? Our free services allow users to consolidate credit card debts into one manageable payment. Our credit card debt relief service are not a debt consolidation loan, a consolidation loans may lower your payment but the overall cost can add up and you could lose your home if you can't make the payments or the payments are late, more...
Our Credit Card Consolidation Quotes Offer...
One convenient monthly payment - With a flexible due date
Reduce or eliminate high interest rates - Finance charges reduced 30%-100%
Affordable monthly payments - Reduced by 30%-60%
Reduce the repayment period of existing debts - For example, from 25 years to just 7 years
Over-the-limit and late fees waived - Penalties normally ranging from $25 to $29 per account
Bring past-due accounts current - Current status reported by creditors to credit agencies
Reduce debt-to-income ratio - Actually reduce debt with less expense
Our debt consolidating quote may also... - Stop annoying phone calls and demanding letters
Credit card debt consolidation services
Through the use of our online credit card debt consolidating services we can help people with unsecured debt find a way to pay off their debts more quickly by reducing their interest rates and eliminate late fees. We are able to secure you the lowest payment possible without loaning you additional money or asking you to use your house, car, or any other asset as collateral.
Our site offers a full variety of credit card debt consolidating solutions that has helped hundreds of Americans get and stay out of debt each year. We specialize in assisting families and individuals experiencing real financial difficulties because of heavy unsecured debt loads.
