If you have reached a point where you can no longer afford to pay your monthly liabilities, you may find debt relief with debt consolidation. Debt consolidation, available in a number of forms, allows you to combine all of your many debts into one affordable and convenient payment, and with a reduced interest rate. You may choose from consolidation loans, credit counseling, or debt settlement as a way to obtain this debt relief.
Consolidation loans allow you to pay your debts with a single monthly payment and at a more affordable amount. When you take out a loan with your lender, they will pay off your debts and provide you with a home equity loan, mortgage refinancing, unsecured private loan, or some other form. Home equity loans and mortgage refinancing are types of secured loans. These types of loans hold your personal assets such as your home as security against loan default.
Basically, if you stop paying your monthly installments, your home will become property of the lender, which they will sell as repayment for your loan. Unsecured loans do not provide a guarantee for the lender which makes them harder to come by. These types of loans have higher interest rates and are generally only given to those with clear credit histories and high credit ratings.
Expand and learn more about basic borrower requirements at Lending Club (Not available in all states).
While credit counseling can get you a consolidated payment and lower interest rate as with consolidation loans, it also provides you with education on how to avoid getting yourself in this situation again in the future. They can help you learn to curb your out of control spending habits, budget, and even educate you on financing traps to look out for.
Debt settlement is a unique option because it eliminates your monthly payment and gives you the opportunity to pay your balance in full, at a reduced amount. You will go through legal arbitration with your creditors and lenders to agree on a reduced balance, which you will pay with funds you have been saving in a settlement account.
Ensure a positive debt consolidation experience by taking the time to investigate all your options, as well as the debt management company you are considering to place your trust in and work with.
Other Companies Offering Debt Consolidation Services
A New Horizon Credit Counseling Services Inc – Licensed non-profit credit counseling organization. Academic Loan Group – Consolidation of student and parent plus loans.
- AmerAssist – Debt restructuring for businesses.
American Debt Resources – A debt consolidation and counseling firm helping clients become debt free. Americorp Debt Consolidation – Provides debt consolidation of bills and unsecured debt. CCFC of America – Financial counseling agency providing nationwide credit counseling services.
- CRS Financial Services – Debt Management firm assisting consumers via budgeting and debt consolidation services.
- Cambridge Credit Counseling – National firm offering a debt consolidation plan.
- Consumer Alliance Processing Corporation – Debt management service provider for consumers and agencies.
Consumer Education Services Inc. – Non-Profit debt management organization.
- Credit Advisors – Provides fee-based debt counseling services.
Credit One Financial Solutions – Offers personal credit lines for consolidating debt. Crisis Credit Counseling – Provides debt consolidation & settlement services for consumers. Debt Consolidation Corp – Provides debt consolidation services nationwide. Debt Solutions USA – Financial firm offering a debt consolidation program. Discount Debt Solutions – Provides credit counseling services and debt management solutions. First American Debt Consolidation Loans – Provides assistance in debt consolidation and reduction of current monthly payments.
- Fundamental Financial – Student loan consolidation for medical, law, business and other graduate school professionals.
Graduate Leverage – Student loan consolidation and debt management company. Nation Wide Consumer Debt Relief Inc. – ISO certified Credit Counseling Agency. New Path Debt Solutions – Agency offers unsecured credit card debt settlement strategies. OneSimpleLoan – Offers student loan consolidation, reconsolidation, Federal and private education financial aid loans.