Debt Consolidation - Florida
Are you interested in finding out if debt consolidation will give you relief from your debts, including credit card debts and other types of unsecured debts (such as medical bills, department store charges, or even utilities)? If you are, you are certainly not alone. Many residents in Florida and elsewhere are also in financial distress due to any number of reasons, such as unemployment or a personal hardship. But the good news is, you may be able to find much-needed relief by consolidating your debts.
Also called a "debt management plan" or DMP, debt consolidation allows you to combine, or "consolidate," all your unsecured debts into one, more structured, and more manageable payment plan made to a credit counseling agency. While debt consolidation is a smart financial move for many consumers, there are other debt relief options available, including debt settlement and debt consolidation loans. These debt relief methods have become popular alternatives to bankruptcy - which has a more damaging and longer lasting impact to personal credit. To explore your debt relief options, answer a few, simple questions to get a free debt relief analysis and savings estimate.
What Are the Benefits of Debt Consolidation?
The term "debt consolidation" has come to represent a wide variety of debt relief options in the industry. But what it actually refers to is the process of combining, or "consolidating," credit card and unsecured debts into one, more affordable, and more manageable monthly payment made to a credit counseling agency that, in turn, distributes funds to creditors. When you enroll in a debt consolidation program, you will speak to credit counselors who will review your outstanding debts, and review how much money you can reasonably dedicate each month to paying down your debts. Once they have a good understanding of your finances, credit counselors typically develop a strategy to help reduce your debts by submitting proposals (on your behalf) to creditors asking for reduced interest rates, or the waiving or elimination of any late fees or penalties. Creditors that agree to the proposals are placed into the debt management plan.
The goal is, with a single, more predictable, and more affordable payment plan, you can ideally direct more of your payment towards paying off the principal of your loans rather than just the interest - and eventually, reduce your debts sooner than if you continued making the monthly payments on your credit card debts at higher interest rates. If you are interested in finding out how much you can save every month through debt consolidation, request a free debt relief analysis and savings estimate. - at no obligation.
Can Debt Consolidation Loans Help?
Many consumers make the mistake of thinking that debt consolidation is the same as taking out a debt consolidation loan, so it is wise to understand their fundamental difference. As noted earlier, debt consolidation involves combining your unsecured and credit card debts into a single, more affordable payment plan made to a credit counseling agency. In contrast, debt consolidation loans involve combining your high-interest debts into one, lower interest loan.
A debt consolidation loan typically involves taking unsecured debt and paying it off with funds that come by way of a "secured" loan. Simply put, it is a loan where you would have had to put up your home or other asset as collateral. In many cases, consumers who get approved for a debt consolidation loan generally ring up new credit card charges. As a result, many of them will have new, high-interest credit card debts to deal with on top of their loan. Under this scenario, a debt consolidation loan has generally made their debt situation go from bad to worse. When you consider the hidden pitfalls that may occur when taking out a debt consolidation loan, it is wise to explore your other debt relief options - like debt consolidation - that not only help you reduce your debts, but can also give you solid information about how to better manage your budget.
Your Savings With Debt Consolidation
Each individual's debt situation is unique, as are the reasons for getting into debt in the first place. For some, the reasons vary from having lost or reduced income, rising medical expenses, or an unexpected personal crisis. For others, credit card debts are typically the painful consequences of too many impulse buys at the mall or at your favorite online retailer. But regardless of the reasons why you falling months behind on your payments, debt consolidation may be able to help manage your debts and potentially lead to savings.
However, the amount of savings that you can potentially get, every month, depends on how much you owe, the current interest rates that you are paying, and any late fees or penalties you have. Keep in mind that with a debt consolidation program, you will be provided with a more structured and more lenient repayment plan that can help you pay off your debts sooner than if you only continued to make the minimum monthly payments and at a pace that you can manage.
That's why it is a smart move to find out how debt consolidation can help you get back on track with your finances as well as help you make a fresh start. Request a free debt relief analysis and savings estimate - now to get you started.