Debt Consolidation Loans
Are you a resident of Missouri who is struggling with debts spread across multiple credit cards and other types of unsecured debts and wondering if a debt consolidation loan will help? If so, you're not alone. Across America, many residents are also overwhelmed with credit card debt due to any number of reasons, such as unemployment, medical bills, or personal hardships. The good news is - help is available. Many consumers have found relief from their debts thanks to a variety of debt relief options, including debt consolidation, loans, debt settlement, and bankruptcy.
Debt consolidation is certainly a popular option among many consumers who are looking to get relief from their credit card debts as well as unsecured debts like utilities, department store charges, or even medical bills. With consolidation, consumers can combine multiple debts into a single, more manageable, and more predictable payment plan made to a credit counseling agency.
Another popular debt relief option is debt settlement, also referred to as debt negotiation. What debt settlement allows is for consumers to negotiate with their individual creditors to get them to agree to a substantially reduced amount of what they owe. Depending on their debt level, many consumers also try to qualify for loans to get relief from credit cards, but keep in mind; loans generally allow consumers to combine multiple debts into one, lower interest loan, but they do not involve enrolling in a credit counseling or debt management plan. Today, these debt relief options have become popular alternatives to bankruptcy, which has a more severe and longer lasting impact to one's credit score.
Find out how you can get debt relief and how much you can potentially save by answering a few, simple questions to get a free debt relief analysis and savings estimate. Start now to see how much you can save!
Benefits of Debt Consolidation
For many consumers, high credit card debt is not always the result of reckless spending or impulse buys. In a tight economy, many consumers have fallen on hard times as a result of unexpected financial hardships - like unemployment or doctor bills. As mentioned earlier, one proven debt relief option is debt consolidation, or a debt management plan (DMP). The goal of a debt consolidation plan is to "consolidate," or combine, your unsecured debts into a single, more manageable and more structured monthly payment made to a credit counseling agency.
Coordinated by credit counselors, debt consolidation typically begins with a thorough review of your finances, outstanding debts, and other assets. This process allows credit counselors to assess your debt situation, the interest rates that you are paying, and the balances on your credit cards. Then, when they have a clear picture of your finances, they typically submit proposals to creditors, on your behalf, requesting lower interest rates and the waiving of late fees and penalties. Creditors that accept the proposals are then added to the debt management plan, and receive payment through the credit counseling agency. If followed faithfully, debt consolidation can help you pay off your debts at a more accelerated and predictable pace.
Loans to Pay for Debt?
Many consumers, depending on their debt situation, get a personal loan to help pay off multiple, high-interest credit card debts. As noted earlier, a debt consolidation personal loan typically involves combining your high-interest credit card and unsecured debts into one, lower interest loan. A debt consolidation loan involves taking unsecured debt and paying it off with funds that come by way of a "secured" loan, or a loan where you would have to put up a collateral, like your home or other asset.
Keep in mind that unlike getting relief using debt consolidation or credit counseling, a personal loan involves paying off your debts with a brand new loan. In many cases, a loan is a potential risk for consumers who are not disciplined enough to stop using their credit cards. Many consumers who get a debt consolidation loan generally end up using their credit cards again, and accumulate new, high-interest credit card debts to deal with on top of their loan. In this case, a debt consolidation loan has generally made their debt situation go from bad to worse.
Debt Consolidation Savings
For many consumers who have the discipline to monitor their budget and stop using their credit cards for most of their purchases, debt consolidation can help them get on a path toward reducing their debts and potentially lead to savings. Keep in mind, however, that while it is the credit counselor's responsibility to request from your creditors a more lenient repayment plan, it remains your responsibility to ensure that you have the funds available in the account set up by the credit counseling agency. In addition, make sure that you understand how much savings you can potentially get, every month, when you enroll in a debt consolidation program. Typically, your savings depend on several factors: these include the total amount of your debts, the current interest rates, and any late fees or penalties.
The bottom line is, if you are ready to start managing and paying off your credit card and unsecured debts, take the next step and find out what debt relief can do for you and your family. To explore your debt relief options, request a free debt relief analysis and savings estimate - at no cost to you. Start today!