If you are a homeowner in California, you may be struggling to manage your debts. You are not alone. Many Americans are dealing with financial obligations that they can no longer meet. In order to solve their monetary problems, a lot of people are reaching out to the best loan consolidation companies for help.
Loan consolidation looks like a perfect solution for a couple of reasons. Many of the people struggling with debts are frustrated by the number of loans for which they are responsible. It is also difficult to manage the various requirements, due dates and interest rates that pertain to these debts. A loan consolidation allows you to pay off all of the small debts and replace them with one, large debt owed to a single entity.
Ideally, such a plan gives you peace of mind as well as a lower interest rate. However, there are often unexpected drawbacks to these solutions. While you may qualify for a low interest rate, these companies actually have several rate tiers. You may end up paying much more in interest than you expected. The worst part of the whole solution is that it only replaces your debts with another debt.
If this does not sound appealing to you, then you may want to become one of the more than 100,000 people who have received debt relief from DebtconsolidationUSA.com. The experts in debt relief at this company do not believe that another loan is the right way out of debt for you. Instead, they propose to solve your financial problems with a solution known as debt negotiation.
Negotiating with Your Creditors
The purpose of negotiation is to convince your creditors to accept a large, single payment in order to close your account and cancel the remainder of your debt. This process begins when you stop making payments. It sounds scary. However, this is necessary if you want to get your creditors to take negotiations seriously. This approach only works with unsecured debts, such as credit card bills, medical debts and other types of personal loans.
While you are refusing to pay your creditors, you are making monthly payments to a settlement account. These payments amass in an account over time. One by one, you can use the saved funds in this account to pay off your creditors. When people do this, it usually takes anywhere from two to four years to buy off all of your creditors and close all of your accounts.
It is possible to try this all on your own. However, most collection agencies are very aggressive about recovering these funds. The representatives here are trained to deal with collections agencies and protect you during the few years that it usually takes to pay off these debts.
Why Is Debt Negotiation Superior?
If you take out a new loan to consolidate your debts, you remain in debt. What you really want is to get out of debt and to renew your credit rating. When you negotiate your debt, you can accomplish both of these things. You can erase your unsecured debts in four years or less. After you pay off your last account, your credit rating will usually recover very quickly. During the period of negotiation, this rating is usually quite bad. However, when the entire process is over, you will find yourself debt-free and in possession of a superior credit score.
Get Help Now
It does not pay to hesitate when it comes to financial matters. The longer you stay in debt, the more you will pay in the long run. Even the best loan consolidation companies cannot change that fact. Contact a debt adviser now if you want to free yourself from debt and recover a good credit rating as soon as possible.