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Is Debt Consolidation Best?

February 27, 2012 6 comments

by Lizzy Bale

Do you need advice on consolidating your credit card debts? Have you just gone through a nasty divorce and now you’re stuck with a mountain of credit card debt that you can no longer afford to pay? Have you just lost your job or suffered a medical emergency that caused you to miss work and suffer a drop in income? Let us offer you some debt consolidation advice to help you set your mind at ease and offer hope to your desperate situation.

If you find yourself struggling to meet the minimum payments on your credit cards each month, it’s time to figure out a solution to your debt problems. All options should be considered.This includes borrowing from your IRA or 401K, taking out a home equity loan, peer to peer lending, unsecured debt consolidation loans, debt settlement and even filing for bankruptcy to get a fresh start. Debt consolidation can help when you are stressed over bill payments

If you are like the average American household you have close to $20,000 in unsecured loans that you are having difficulty paying. How should you go about managing your debt problems?

How Can Debt Consolidation Help Me?

Credit card consolidation can help you get control of your finances once again. You can select a payment plan that you can afford and work on reducing how much you owe. You can get help with reducing the number of debt collection calls you get every day. You can see how soon you will finally be debt free and reduce your stress, worry and anxiety levels.

When you consolidate your debts you get the time and money you need to reduce your debts at one of the lowest costs possible.

Can You Save With Credit Card Consolidation?

You wouldn’t think that you needed to ask a question like this because when you consolidate you save money right? Not always. Some types of debt consolidation programs only work on extending the length of time you have to pay off your bills. These types of plans do not offer any cost savings, they only give you more time to pay off what you owe.

When you choose one of our recommended debt consolidation programs, you can save thousands on your debts AND you can reduce your debts in as little as 24 to 48 months.

Do You Need A New Debt Consolidation Loan To Save Money?

Wells Fargo Bank is offering Texas debt consolidation home equity loans for 8% for up to $30,000 as long as you have a FICO score of 700 to 850. You need good credit to get an unsecured debt consolidation loan these days. Most consumers looking for debt relief through debt consolidation do not have good enough credit to qualify for a new loan. So even if you wanted to consolidate your bills with a low rate consolidation loan, you will likely get denied for that loan.

Taking out a new loan is usually not the best solution for your financial problems. Even the prospect of peer to peer lending is not as attractive if you have fair or poor credit. If you’ve missed a credit card payment or two then you probably have too many negative marks on your credit report to get the best consolidation loan rates. You could get a 5 year loan rate of as high as 35% with a closing fee of just under 5%. Unless you have excellent credit, a consolidation loan is not going to save you money.

Debt Consolidation With Bad Credit?

Yes it is possible to consolidate your bills with bad credit. We have debt relief companies that do not have credit score requirements. You can have the worst credit ratings and still qualify for a debt relief plan.

As we have just discussed, a loan is usually not the best course of action to get out of debt if you have bad credit.

We also recommend not dipping into your IRA or 401K for a hardship withdrawal to pay down your debts either. The opportunity costs of these actions are too high to make them beneficial to your financial situation.

What Is Your Debt Consolidation Advice?

You will get the most bang for your buck when consolidating unsecured loans and debts. This includes Visa, MasterCard, Discover and American Express credit cards. This also includes your medical and hospital bills, payday loans, cash advance loans, and other unsecured personal loans.

We recommend filling out the form or calling us to get a free debt analysis. You can find out how much you can save in minutes.

There is no obligation and your information will be held strictly confidential.

There is no fee to get started and no fees until your debts are successfully resolved.

Is Debt Consolidation The Best Way To Get Out Of Debt?

There are many ways you can choose to get rid of your debt. The debt solutions we are recommending are just one way. It will not work for everyone.

How many companies will tell you that?

There are pros and cons to filing bankruptcy just like there are pros and cons to debt management plans and credit counseling.

The debt relief programs we recommend are also known as debt settlement and debt negotiation.

We will work to match you with a provider who will negotiate with your creditors on your behalf.

This can help you reduce your debts by thousands and have you debt free in as little as 24 to 48 months.

We’d like to think this is the best way to get out of debt but it is not the only way to pay off all your bills.

Does Debt Consolidation Ruin Your Credit?

The best candidates for debt settlement are consumers who are already behind on their monthly credit card payments. When you miss your payments your FICO score drops. So if you are already behind on your bills, you will already have bad credit. This disqualifies you from consolidation loans and home equity loans. But does not disqualify you from negotiating with your creditors.credit solutions for past due accounts

Once you have paid off your debts through settlement, you will have an excellent debt to income ratio which is what lenders desire and you will be able to quickly increase your FICO score.

You will also be able to tell if you have ruined credit by checking your credit card statement and seeing what your APR is. If you are paying over 20% on your Visa or MasterCard then you have bad credit already. Paying these high interest rates make it difficult to get out of debt without help.

You could be stuck paying off these bills for the rest of your life, losing thousands of dollars a year to interest charges.

We can help you reduce your outstanding balances by thousands and help you avoid bankruptcy.

Will Debt Consolidation Work With Bank of America, Citibank, Chase, Capital One, Discover Card, American Express Credit Cards?

Yes, debt consolidation will work with most of the major credit card companies. Not all creditors will agree to a settlement offer. This goes for all debt relief companies in the industry. Run away from a company that says they can get settlements from 100% of credit card banks. The major credit card banks like Bank of America, Chase, Citibank and Discover Card do settle credit card accounts for less than full balance all the time. They don’t advertise that they offer these plans for obvious reasons.Consolidating Credit Cards

Is Debt Consolidation Better Than Bankruptcy?

There’s a common answer to most poker questions that is appropriate here – “It Depends.”

Everyone’s financial situation is unique. For some bankruptcy makes sense and for others, not so much. It depends on your financial circumstances.

Chapter 7 bankruptcy allows you to wipe the slate clean, discharge your unsecured debts, and start over. The main negative is the black mark on your credit report for 7 to 10 years. Chapter 13 bankruptcy forces you to repay most of what you owe to your creditors. It also comes with the negative mark on your credit report.

How Much Does A Debt Consolidation Company Cost?

You can compare our debt consolidation plan cost to one of the leading attorney debt settlement plans and see we are a better deal. They want to charge you 25% of your debt plus a $50 monthly fee. The debt relief companies we recommend only get paid when they successfully resolve your debts. Their fees are comparable to all the top performance based debt relief firms. They even offer a money back guarantee if you are not satisfied.

Is A Debt Consolidation Plan Right For Me?

Allow us the opportunity to evaluate your situation and provide a free debt consolidation quote. If you like what you hear, great. If not, no hard feelings and we wish you the best. We’d appreciate the opportunity to offer our debt consolidation advice for your situation.


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