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DEBT CONSOLIDATION

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America Debt Resolutions an A+ Rated Company, and its debt relief partners specialize in helping consumers review multiple debt relief programs, such as credit card debt consolidation, debt management, credit counseling, and includes a debt settlement program with NO FESS PAID IN ADVANCE. We guarantee you will not pay any fees for the services until our negotiators have successfully settled/resolved a debt for you

Important information that you need to know.

Debt Consolidation

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Also known as a consolidation loan, debt consolidation is the substitute of several loans with a single loan, often with a lower monthly payment and a longer repayment period.

Regarding debt consolidation, the Federal Trade Commission states, that a consumer may be able to lower the cost of credit by consolidating debt through a second mortgage or a home equity line of credit, but these loans require the home as collateral. If you cannot make the payments, or if your payments are late, you could lose your home.

The credit counseling program allows you to:

  • Significantly reduce your interest rates

  • Help with collection / creditor calls

  • Get out of debt much faster

  • Remove excessive fees

  • Rescue your credit score

What’s more, the costs of consolidation loans can add up. In addition to interest on the loans, you may have to pay “points,” with one point equal to one percent of the amount you borrow. Still, these loans may provide certain tax advantages that are not available with other kinds of credit.

Source: Federal Trade Commission, “Facts for Consumers”

Resolve the Debt

Therefore, by consolidating your unsecured debt with a home equity loan, you run the risk of losing your hard-earned assets if you default on your payments. You will still pay the full balances on your unsecured debt and must have a low debt-to-income ratio to qualify.

Understanding Debt Consolidation

The journey to financial stability and freedom is challenging, especially if you manage multiple debts with varying interest rates and payment dates. Debt consolidation is a powerful financial strategy that can help individuals take control of their money and find a the way to a debt-free opportunity. In this article, we will study what debt consolidation is, its benefits, and by what means it can serve as a vital step in your financial voyage.

What is Debt Consolidation?

Debt consolidation is a financial approach allowing individuals to simplify their debt administration by combining multiple debts into a more convenient loan. This typically involves taking out a new unsecured loan to pay in full existing debts, leaving you with one, generally lower interest rate debt to focus on. It can be utilized for various types of debt, including credit card debt, utility bills, personal loans, medical bills, and more.

What are the Benefits of Debt Consolidation?

1. Lower Interest Rates: The primary benefit of debt consolidation is the possibility of securing a lower interest rate on your consolidated loan. By securing this, you can reduce the overall cost of your
obligations, ultimately saving money in the long run.

2. Basic Financial Management: Managing multiple debt payments with different payment due dates and interest rates can be stressful. Debt consolidation simplifies your financial life, with only the
need to make a single monthly payment.

3. Better Credit Score: Successfully managing your debt through consolidation can certainly impact your credit score. Timely payments on one, lower-interest loan can help build your credit over time.

4. Fixed Monthly Payments: With a debt consolidated loan, you'll have a fixed monthly payment, achieving a simpler budget and plan for your finances.

5. Less Stress: Debt consolidation can provide serenity by reducing financial stress and offering a clear strategy to becoming debt-free.

Kinds of Debt Consolidation

You have several methods to consolidate your debt, individually with its own set of pros and cons:

1. Individual Loans: You can take out a personal loan with your bank or online lender to pay off your current debts. Personal loans commonly come with fixed interest rates and terms.

2. Balance Transfer Credit Cards: Specific credit cards offer introductory 0% APR balance transfer periods. Moving your high-interest rate credit card balances to a 0% card can be an effective way to consolidate your debt.

3. Lines of Credit or Home Equity Line of Credit: If you own a home, you may be able to open a home line of credit and use the equity in your home to secure a loan or line of credit for debt consolidation. BE CAREFUL with this option; you are using your home as collateral for unsecured debt, and failure to repay could lead to foreclosure and loss of your home.

4. Debt Management Programs: Credit counseling groups can help you create a debt management plan, combining your creditor payments into a one monthly payment. The program may also negotiate lower interest rates with most of your creditors and maintaining your payments paid on time.

Factors to Review Before Debt Consolidation

Before following debt consolidation, it's important to assess your financial circumstances, look at your budget and weigh the pros and cons:

1. Realize the Total Cost: While a lower interest rate is attractive, it's imperative to know the total cost of your consolidated loan, add in fees and any other possible costs of extending the loan and early payoff penalty’s.

2. Make a Promise to have Responsible Financial Behavior: Debt consolidation is not a magical resolution. It's essential to commit to responsible financial behavior to prevent falling back into debt.

3. Review Different Consolidation Options: Take the time to study and compare various consolidation methods to find the debt resolution that best suits your needs and financial situation.

4. Look for Professional Advice: Consult a financial consultant or credit counselor to confirm what debt consolidation is the right option for you.

In Conclusion

Debt consolidation is an effective tool for individuals searching to simplify their financial lives, reduce their interest rates, reduce stress, and work toward financial freedom. By realizing what debt consolidation is and exploring the available choices, you can make an educated decision on your path to becoming debt and stress-free. In summary, debt consolidation can be beneficial; it is essential to combine it with responsible financial budgeting and management for long-term success on your financial voyage.

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