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How Debt Consolidation Works
Debt Consolidation debt relief is an option that many debtors consider when seeking resolutions for their unsecured debts. It is important that you have an understanding of exactly what debt consolidation debt relief is and how it works before you settle on this form of debt management. Debt consolidation combines all of your unsecured loans, such as credit card bills, utility bills, medical bills and student loans, into one loan with one monthly payment. Debtors who opt for debt consolidation find it easier to manage their money and enjoy the benefit of a lower interest rate.
It is possible to combine all of your unsecured debts through debt consolidation, by taking out a debt consolidation loan. This loan is then used to payoff all of your unsecured debts. Because this process will then make credit available on your credit cards, it is wise to limit the amount of cards that you have and use after debt consolidation. You wouldn’t want to rack up more debt in addition to the debt consolidation loan.
What many people don’t realize is that debt consolidation doesn’t really ‘solve’ your debt because it doesn’t eliminate it. Debt consolidation is a good tool to use if you need to restructure your debt and balance your budget. However it is important to be aware of the consequences of debt consolidation. Through this process you convert your unsecured debt into secured debt, because you must offer a form of collateral in order to take the loan out, and this means that if you don’t pay, you could forfeit the collateral.
Qualifying for Debt Consolidation
Because the process of debt consolidation involves taking out a loan, only a limited number of debtors actually qualify for this debt resolution option. One must have a good credit score and some form of collateral. This often means that only homeowners are eligible for debt consolidation. Candidates for debt consolidation must also have the ability to pay back the loan, meaning that a favorable debt to income ratio is crucial. Lending institutions will not offer the option of debt consolidation to those who do not meet these criteria.
Luckily there are other options for those who fail to qualify for debt consolidation. To see if you can qualify for our debt settlement program, please take a moment to fill out our no obligation debt settlement form. Whereas debt consolidation resolves debt with even more debt, debt settlement completely eliminates your debt in 12 to 36 months.
When you enroll in our Credit card debt settlement program, your personal debt settlement coach will review your finances and devise a budget and plan for your settlement. Then our debt settlement representative will begin contacting your creditors and negotiating with them. Through debt settlement, you can completely payoff your debt by only paying 50% or less than you actually owe. You only pay one low monthly payment during the program, and you get the knowledge and expertise of our specialists to guide you along the way. Please take a moment to Fill out our free, no obligation debt settlement form, so we can show you how to become debt free in 12 to 36 months., so we can show you how to become debt free.
Offering Professional Debt Settlement Help to 50 US States
List of States where we offer debt settlement
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