• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

National Debt Relief

National Debt Relief - A+ BBB Accredited Business - Get Relief From Credit Card Debt, Medical Bills And Unsecured Loans

Talk to a debt counselor toll free:

800-300-9550

Get Relief From Credit Card Debt

Medical Bills and Unsecured Loans

  • Apply Now
    • Qualifications
    • Is This Right For Me?
  • Proven Results
    • Debt Relief Benefits
    • Credit Card Debt Relief
  • Debt Relief
  • Credit Card Debt Relief
  • Debt Consolidation
  • Login
HomeBlog Debt ConsolidationLoans For Debt Consolidation
Video Transcript

Free Debt Consolidation Quote

By clicking "Get Free Quote", you agree that the phone number you are providing may be used to contact you by National Debt Relief (including autodialed and prerecorded calls, as well as text/SMS messages). Msg. and data rates apply, and your consent to such contact is not required for purchase.
  • National Debt Relief, LLC BBB Business Review
  • McAfee SECURE sites help keep you safe from identity theft, credit card fraud, spyware, spam, viruses and online scams

Loans For Debt Consolidation

December 31, 2012 by National Debt Relief

Stamp Shows Consolidated Loan approvedWhen you look in a mirror, what do you see looking back? Is it a frazzled looking person all stressed out by debt? Being heavily in debt causes stress and stress can cause physical symptoms. You could be experiencing an irregular heartbeat, an upset stomach, insomnia, headaches and even worse. If you do nothing, the problem will only get worse. This is why one of your best moves could be to find loans for debt consolidation.

How a credit card consolidation loan could help

The idea behind debt consolidation loans is very simple. You just borrow enough money from some source and use it to pay off your debts. The major advantage of using debt consolidation is that you will have a lower monthly payment than the sum of the payments you’re making now. Plus, you will have only one payment to make a month, which will be much easier to keep track of and pay on time than the multiple payments you’re probably making now.

Try your bank or credit union

The first place to find loans for debt consolidation is your bank or credit union. If you owe less than $10,000, you should be able to get an unsecured loan or what’s often called a signature loan. On the other hand, if you owe $10,000 or more, you may have to try to get a secured loan. This is one where you pledge an asset as collateral to secure the loan. The asset most Americans use to secure one of these loans is their house – in the form of a refi, a second mortgage or a homeowner’s equity line of credit. Of course, you must have enough equity in your house to borrow the amount of money you need to pay off your creditors. You will also need to have reasonably good credit to get either a secured or unsecured loan.

Borrow from your retirement fund

The best person to borrow from is you. If you can borrow from yourself, you don’t have to worry about your credit rating or fill out a loan application. How can you do this? It’s pretty simple. If you have a 401(k) or an IRA retirement account, the chances are you can borrow money from it. For example, most 401(k) plans allow you to borrow up to $50,000 or half of what you have in your account, whichever is less. You will need to pay the money back within five years and you will pay interest on it – but to yourself.

While you can also borrow money from an IRA, it’s not as good a deal as a 401(k). You can take money from it but only for a 60-day period for it to be considered tax-free. If you fail to put the money back within those 60 days it will be treated as ordinary income and subject to regular income taxes. If you’re less than 59 ½ there will also be a 10% penalty. Plus, you can’t put the money back.

Borrow from your life insurance policy?

If you’re paying on a whole life insurance policy, the chances are that it’s accumulating cash value. How much cash value it has will depend on how long you’ve had the policy. If you’ve had it for 10 years or longer, you may have a fair amount of cash value. In this case, you should be able to borrow all or part of your policy’s cash value. The best part of borrowing on an insurance policy is that you can take as much time as you like to pay back the money or not pay it back at all. Of course, when you die, your heirs would not get the money you borrowed. In other words, if you have a $100,000 whole life policy and borrowed $30,000, your heirs would get only $70,000.

The downside of debt consolidation

The major negative of a debt consolidation loan is that it does nothing to slash your debts. If you owe $15,000 in unsecured credit card debts and get a loan to pay them off, you’ll still owe $15,000 and will ultimately have to pay it all back. This is why many Americans have turned to debt settlement. This is where we negotiate with your creditors to get your balances reduced to help you get out of debt in 24 to 48 months. We’ve saved our clients hundreds of thousands of dollars and there’s no reason why we couldn’t help you pay off your debts for less than you owe. Call our toll-free number or start a chat so that we can explain debt settlement and how you could harness it to become debt free.

Do you qualify for debt consolidation?

National Debt Relief
National Debt Relief

National Debt Relief is one of the largest and best-rated debt settlement companies in the country. In addition to providing excellent, 5-star services to our clients, we also focus on educating consumers across America on how to best manage their money. Our posts cover topics around personal finance, saving tips, and much more. We’ve served thousands of clients, settled over $1 billion in consumer debt, and our services have been featured on sites like NerdWallet, Mashable, HuffPost, and Glamour.

Follow National Debt Relief: Facebook Twitter Instagram Linkedin

Primary Sidebar

Consolidate Your Debt!
Find out how NDR could help.
  • Get one low monthly payment
  • Avoid bankruptcy
  • Get out of debt in 24-48 months
Get Your Free evaluation
Free Debt Consolidation Quote
By clicking "Get Free Quote", you agree that the phone number you are providing may be used to contact you by National Debt Relief (including autodialed and prerecorded calls, as well as text/SMS messages). Msg. and data rates apply, and your consent to such contact is not required for purchase.
 Trusted By Our Clients

"..."

Easy National Debt Relief Caller: Austin Transcribed WE 1/17/2021 Austin: Our call may be recorded. What led you to National Debt Relief and why did you choose National Debt Relief over a different company? CARA: Honestly, it was just kind of on a whim. I just saw a commercial, I think, and then looked it up. And we were just tired of living paycheck to paycheck and not feeling like we were getting anywhere with our debt. Austin: What were your thoughts and was wondering as far as like the enrollment process, what process or where are you at this point in the process? CARA: We are almost done. Well, they've paid off almost everything or we've paid off almost everything. We're working on our last credit card. So I think our last payment will be in December, so nearing the end. Austin: Do you remember the name of the negotiator? I'm sure you've probably worked with a couple of people, but what's the name of the negotiator that you worked with? CARA: Well, I didn't really, I guess really work one on one with like one negotiator. I don't think. We just got email saying, "This is where we're at with this. Do you agree?" you know, type situation. Austin: Do you feel that there's anything that maybe the negotiator did well or anything that they could have improved? CARA: No, I don't think so. Nope, I don't think so. We've been happy with everything so far. Austin: Have you seen any positive impacts from working with National Debt Relief, just to kind of notice any changes to your life? CARA: I mean, definitely less stress, and then we've just been able to be better about our spending and our budget and everything. It helped get us on track. Austin: How would you rate your experience with National Debt Relief on a scale of one to five, where five means you would recommend to friends and one means very dissatisfied? CARA: I'd say 5. Austin: Would it be okay if we shared your comments as a review on our public site with a first name and city only, they're for National Debt Relief and to help other consumers make good choices? CARA: Probably not. I live in a smaller area. If anybody were to hop on and say Cara from Beddington, they would probably know. Austin: We can definitely remove that 'cause we very much respect your privacy. So we can either remove the name and just do a ‘C’ or completely remove the city and just do like ‘Cara from the USA’ whatever -- mainly comments than identifying you, I guess would be important. CARA: Yeah, I don't care if you use like my name and just put USA. I just don't -- where I live, it's not a very big area. Austin: I can totally respect that. Not a problem at all. CARA: Yes, we are a little bit of ashamed of having to go this route, but it was what was best for our family at the time. Austin: Would you like us to email you a link to that review whenever it's published? CARA: Yeah, that'd be great. Austin: Our call may have been recorded.

Trustpilot star rating Trustpilot star rating Trustpilot star rating Trustpilot star rating Trustpilot star rating

Cara Waterman
ConsumerAffairs Reviews

Latest Debt Consolidation Posts

  • Is A Debt Consolidation Loan Right For Me?
  • Step-by-Step Guide To Consolidating Debt
  • Debt Consolidation Loans For Bad Credit – A Good Idea?
  • Is A Home Equity Loan A Good Idea For Debt Consolidation?
  • 3 Hard Questions To Ask Your Debt Consolidation Company
National Debt Relief, LLC BBB Business Review AFCC Top Ten Reviews Gold Top Consumer Reviews Consumers Advocate Trust Pilot
Company
  • About Us
  • Contact Us
  • Blog
  • Careers
  • Corporate
  • Privacy Policies
  • Terms Of Site
  • Disclaimer
  • Sitemap
Products
  • Debt Relief
  • Credit Card Debt Relief
  • Debt Consolidation
  • Debt Settlement
  • Calculators
  • FAQs
Debt Resources
  • Credit Card Debt
  • Medical Debt
  • Personal Loan Debt
  • Unemployment
  • Divorce Debt
  • Retiree Debt
  • Veteran Debt
  • Business Debt
  • Personal Finance
Follow Us
  • Facebook
  • Twitter
  • Linkedin
  • Instagram
  • Pinterest

© 2021, National Debt Relief, All Rights Reserved.

Disclaimer
Disclaimer
Disclaimer