Debt Consolidation Reviews - Pennsylvania
During tough financial times, many residents in Pennsylvania and elsewhere are finding themselves in need of relief from credit cards and many types of unsecured debts, and searching for reviews on debt consolidation. If you are also struggling with debts such as such as medical bills, department store charges, or utilities, and are not going anywhere with simply making minimum payments, it might just be a smart idea to review your debt relief options - including debt consolidation, debt consolidation loans, or bankruptcy.
To review debt consolidation as well as your other debt relief options, you can request a free debt relief estimate - along with a savings quote - today. Start by answering a few questions here.
Debt consolidation has become a sort of catch-all term for the many forms of debt relief available; what it typically involves is combining all of your high-interest debts into ONE, simplified, and more structured monthly payment made to a credit counseling agency. As you may notice, one of the advantages of debt consolidation is that you can typically take all of your credit card and unsecured debts and consolidate them into an easier-to-manage payment.
For many consumers, the simplicity of this approach is generally just one of the reasons why debt consolidation has become a popular alternative to bankruptcy, which has a more damaging and long lasting effect on your credit.
How Debt Consolidation Works
As noted earlier, one of the benefits of debt consolidation (also known as a debt management plan or DMP) is that it allows you to combine multiple credit cards and unsecured debts into ONE, more manageable, and more structured payment made to a credit counseling agency. Simplicity aside, debt consolidation can also provide additional benefits - such as reduced interest rates, or waiver of late fees and other penalties.
To get these benefits worked out for you, credit counselors typically submit proposals on your behalf to creditors asking for more lenient payment terms. The goal is, with a more manageable and more affordable payment plan, you can, hopefully, direct more of your payment into paying off the principal balance on your debts rather than just the interest.
In addition, there is the potential to get savings when one enrolls in a debt consolidation program. The amount of money saved, however, depends on the amount of your original debt, the current interest rates that you are paying, and any benefits that creditors (who are part of the DMP) are willing to extend.
Explore your debt relief options. Request a free debt relief estimate and savings analysis, at no obligation to you.
Credit Counseling vs. Debt Consolidation Loans
For many debt-relief seekers, an alternative is a debt consolidation loan - which is, generally, a lower-interest loan that can help pay off multiple credit card and unsecured debts. But be sure to review the differences between debt consolidation through credit counseling versus debt consolidation loans. Though a loan may be a smart move for disciplined debtors, this approach has the potential to create more problems down the road. Here's why:
A consolidation loan typically uses an asset like a home or a car to "secure" or collateralize the loan. The risk is that if you, for some reason, hit a bump in the road and default on your loan terms, you could put your home or property at risk.
Another problem: Many consumers with debt consolidation loans typically start using their credit cards again and start accumulating new charges all over again. In this case, they typically end up with new, high-interest credit card charges on top of their original debt consolidation loan.
Make The Smart Choice
While taking out a consolidation loan may be a good choice for disciplined debtors, for many consumers, a debt consolidation program is preferable as it provides a more structured and predictable way out of debt. In addition, it typically provides benefits - such as reduced interest rates, or waiver of late fees and other penalties - that can certainly help many consumers manage or pay off their debts sooner than if they only continued to make their minimum payments at higher interest rates.
The bottom line is, if you want to start tackling your debts and regain control of your life, it may be a good time to review debt consolidation and your other relief options and find out how they can help you.
Start today by answering a few, simple questions and get a free debt relief analysis along with a savings estimate.