Debt is like a messy pet that you forget to lock up before going on an extended vacation. Left free to do what it pleases, it’s sure to make a mess of everything that you hold dear.
While your debts can’t rummage through your clothes closets or eat all the food in your pantry, they can still cause plenty of trouble. In fact, your mounting debts could wind up forcing you to declare bankruptcy.
You may have heard about various debt consolidation agencies that advertise quick relief from your unsecured obligations. Since there are several different methods of debt relief out there, it’s important that you seek out the type of help that’s right for your situation. You need a trusted source of debt consolidation advice to help you do this.
You Can Try To Pay Down Your Debts On Your Own
Don’t believe anyone who tells you that you can’t pay down your debts on your own. It’s entirely possible to muster the financial resources required to shrink and eventually eliminate your balances for good. To do this, you’ll need to pay down your debts one at a time. Begin with a particularly high-interest credit card or loan and work your way down the debt ladder until you’ve paid off your least expensive debt.
This process can save you hundreds of dollars in potential interest charges and reduce your payoff period by several years. However, it’s hard to muster the discipline to stay on schedule during a self-managed debt repayment plan. Such a plan might also require you to make uncomfortable cuts to your household budget. Your family might not be willing to make such sacrifices.
How Professional Debt Consolidation Companies Can Help
If you’re looking for a professionally-managed program of debt relief, you have several potential choices. Before making your decision, take the time to absorb a few key bits of debt consolidation advice.
First, it’s important to remember that debt consolidation can help you reduce only your unsecured debts. Since secured obligations like your car note or home equity loan are connected with physical assets that can be forfeited during default or bankruptcy, they can’t be consolidated or reduced by normal means. To alter the terms of a mortgage or auto loan, you’ll need to enter a program of refinancing.
Then again, a debt consolidation program that reduces your burden of unsecured debt could still prove useful. In fact, it could mean the difference between a devastating declaration of bankruptcy and a stable financial future. Unsecured debts that can be reduced by debt consolidation include medical bills, personal credit lines, court judgments, retail-store cards and regular credit cards.
Will A Debt Consolidation Loan Work?
You could choose to take out a debt consolidation loan to help pay down your debts. Although it might seem unwise to open yet another line of credit while you’re trying to get a handle on your current debts, this method of debt relief might meaningfully reduce your total burden.
Once you agree to the terms of your loan, your debt consolidation lender will pay off your existing unsecured creditors and leave you responsible for a single larger loan. This greatly simplifies your repayment arrangements by requiring you to send just one monthly payment to your lender.
Unfortunately, debt consolidation loans can carry high rates of interest unless you have a good credit score. The interest rate on your loan could be as high as 20 percent or more if you have bad credit. This might be even more expensive than the average rate on your old debts. Due to their expense and other factors, most borrowers who listen to unbiased debt consolidation advice from financial experts choose not to take out debt consolidation loans.
Consider The Debt Consolidation Loan Alternative
Rather than take out a costly loan that many produce limited long-term savings, opt for a proven debt relief program from a trusted provider. National Debt Relief, one of the country’s foremost authorities on debt consolidation, has been providing debt settlement services for years.
Like a debt consolidation loan, the debt settlement process can help you reduce and pay down your debts in less time than a self-managed program of debt relief. Unlike a debt consolidation loan, it can actually reduce the principal balances on your existing debts.
In other words, National Debt Relief can dramatically cut the total amount that you owe to your creditors. Once you enroll in a debt settlement program, you won’t owe your creditors another dime until your debts have been settled.
The process often takes less than 48 months and requires no upfront payments. You’ll only owe National Debt Relief for its services once your first debt has been settled and you’re well on your way to financial freedom.
To learn more about the debt settlement process, call National Debt Relief at 1-888-703-4948 or complete the no-obligation debt consultation form today. You’ll receive more debt consolidation advice and discover how to get your finances back on track.