Does consolidating your debt work
Lastly, pursuing a loan may resolve your current financial problem, but does little to prevent the reoccurrence of debt.In comparison, consolidating debt through a credit counseling agency’s DMP comes with far less strict qualifications.In this scenario, an account will be created to keep track of all the balances owed to current creditors.Prior to beginning repayment, a credit counseling agency (CCA) will negotiate with creditors to reduce interest rates and settle on manageable monthly payments.If you can secure a loan, you may be looking at a high-interest rate and longer repayment term.This solution ends up taking longer than other options.Alternative options include debt settlement, bankruptcy, balance transfer cards, and pursuing a personal or payday loan. Utilizing a debt management plan is typically the best method of repaying debt for the majority of individuals.It is highly accessible and can be accomplished with the least amount of money in the least amount of time.
However, all types of unsecured debt can be managed including past medical bills, debt in collections, personal or payday loans, and repossessions.Because this type of debt consolidation requires a loan, it may only be an option for those that can qualify for borrowing.There’s no guarantee of approval or that if approved, the amount will be large enough to cover all outstanding balances the client possesses.Depending on your particular situation, Debt Management can be a great option for debt relief as it doesn't require a loan and you can drastically lower your monthly payments, lower interest rates, and pay it off quicker than if you tried on your own.Debt Management is a consumer relief program whereby we arrange with your creditors to substantially reduce your interest rates and monthly payments on unsecured debt (such as credit cards), allowing you to avoid bankruptcy and the adverse effects it can bring to your credit rating.
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To find out if you qualify call 1-800-774-5779 or fill out the form above for a free, no-obligation and confidential debt assessment.