Are you getting calls from a debt collector? Or are several debt collectors calling you. If so, I don’t have to tell you what an unpleasant experience this is. Debt collectors are usually paid on a sort of commission basis, which is that they get paid based on how much they can collect from debtors like you. This means their only objective is to transfer money from your pocket to theirs – by any means possible.
How to get debt collectors off your back
Maybe you’ve already figured this out on your own but if haven’t, here’s the bad news. There are only two ways to really get out of debt and that’s by declaring bankruptcy or paying it off. If you’re really in trouble and I mean serious trouble with debt, filing for bankruptcy can be a viable alternative. But for most of us, it comes with too high a price as it will stay in your credit report for 10 years. Plus, it’s a public record so that anyone can see you have had a bankruptcy, including potential employers some of whom will not hire anyone who has had a bankruptcy.
How a debt consolidation loan could help
Assuming you don’t want the stigma of a bankruptcy in your record and you don’t have the money to pay off your debts, there are ways to better manage them. One of the most popular of these is a debt consolidation loan. The way this works is pretty simple. You just get a loan from your bank or credit union and use the money to pay off all your creditors. You’ll get those annoying debt collectors of your back and will have a lower monthly payment than the total of the monthly payments you’re making now.
I’ve already listed the most important upside of a debt consolidation loan, which is that you’ll have a better monthly payment. Here’s an example of what I mean. Suppose you owe $15,000 on three different credit cards with interest rates that average 18%. If you were to move your balances to a bank loan with an 8.25% rate, you’d lower your monthly payment by about $145.
Less stress, more peace of mind
Another important benefit of a debt consolidation loan is that you’d have less stress and more peace of mind as you would have gotten rid of those nasty debt collectors. Plus, you’d know that you’re now controlling your debt instead of it controlling you. You would also have just one monthly payment to keep track of in place of the multiple payments you have to remember now.
Is there a catch to debt consolidation loans?
Unfortunately, there is a downside to debt consolidation loans. In fact, they have several negatives. First, you’re not really paying off your debts, you’re just transferring them from one set of creditors to another. If you now owe $15,000 on credit cards you’ll have to borrow $15,000 to pay them off and will still be that much in debt. Second, you’ll end up paying more in interest because it will take longer to pay off the loan than if you just paid off the credit cards. In fact, if you did borrow the $15,000 and took seven years to pay off the loan, your total interest cost would be $4,795.
The biggest downside
The biggest negative to a debt consolidation loan is that you may not be able to get one. Banks and even credit unions are very leery about lending money to people who are struggling with debt. And if you’ve been in your home for less than 10 years, you might not even have enough equity to get a line of credit or a second mortgage.
Let us do the consolidation for you
Our debt consolidation providers have helped thousands of people just like you consolidate their debts and become debt free in a reasonable amount of time. Stop fighting with your debts and debt collectors. Call our toll-free number and let us explain our 100% satisfaction guarantee and what we could do to help you become debt free. Since it’s a free call, you have absolutely nothing to lose except those terrible debt collectors.