|The most difficult phase of a person is the debt phase. Once you are in the trap, you start to feel suffocated; it becomes difficult to come out of it and regain control of your self. You do not know how to tackle the calls from the collection agencies, which threaten not only your security but your family security also. Here you have to take a decision on debt consolidation loans, which can help you in many ways. It can help avoid filing bankruptcy, eliminate creditor harassment etc. Thus, it can give you a new lease of life and offers you a fresh start towards healthy personal finances. However, you are not alone in this adverse situation. The present debt ratio in the US is very high. Most American citizens have more than $8,000 as loans.
Due to bad credits, debt consolidation industry is thriving. These firms combine all your unsecured debt into one reduced monthly payment. This process saves you money, as your new monthly payment is less than what your total monthly payment would be if you added up what the minimum you owe to all of your unsecured creditors. In addition to getting your finances under control, you will benefit further from debt counseling.
The reduction in the burden, allows you to see your debts coming down every month. You do not have to keep a track as to whom to pay each month. You do not have to fear the harassing calls from the creditors. All you have to do is to deal with only one company and take care of only one bill. You can be assured that you will soon be debt free. These firms have a lot of experience and you can rely on
them to find a solution for you. You just have to complete a form and they will contact you with the details of the process.
The benefits of a debt consolidation program:
- Once you join a Debt consolidation program, you will be paying only the amount owed to various creditors and not the interest and penalty charges.
In case of consolidation of credit cards, if you have five credit cards you need to pay 5 bills every month. Once you go for debt consolidation, all your accounts will be consolidated into one account and you will pay only one bill each month.
- The average interest rate on all your credits is also reduced. In case your highest interest rate is 18% and the lowest is 8% then you will need to pay only 8%.
If you are joining a debt consolidation program, you can choose the payment plan that suits your payment abilities.
- Normally it would take about 15-16 years to be debt free, but in a debt consolidation program you will be debt free in 3-5 years.
Bette Schuldo can be reached at Debt Consolidation 101,Inc, which is a premier resource for debt consolidation information.