Take Control with Debt Consolidation
Lower your monthly payments and cut your interest rates to save money.
When you overcharge or rely too much on your credit cards to cover shortfalls in your budget, your monthly debt payments can become more than you can manage. Debt consolidation is something you can use to regain control. The faster you act, the more likely you are to avoid things like bankruptcy and severe credit damage caused by missed payments and collections.
The resources in this section are designed to help you understand what debt consolidation is and how you can use it to get ahead when you start to fall behind. If you have questions or need help, call us at or get started now with our free Online Application.
What is debt consolidation?
Debt consolidation is the process of combining multiple debts at the lowest possible interest rate. Instead of paying several different accounts every month, you only have to worry about one . At the same time, because the interest is lower, your debt doesn’t grow as fast AND more of each payment you make goes to paying off the principal (original debt owed) versus the interest accrued every month.
How does debt consolidation work?
There are a few different ways to consolidate credit card debt. The method you choose is really dependent on your credit score and your personal preferences.
- If you have good credit, then you can use do-it-yourself debt consolidation options, including a balance transfer and a personal unsecured debt consolidation loan.
- If your credit is not the best (or if you’ve had past credit mistakes), it’s likely you won’t qualify for do-it-yourself options. If you want to consolidate you’ll need to go through credit counseling and consolidate using a debt management program.
No matter which option you choose, the process of consolidation works in much the same way. Instead of multiple debt payments each month, you only have one payment to worry about. Your goal in consolidation should always be to get the lowest interest rate possible.
Are there any risks when you consolidate debt?
In most cases, as long as you consolidate your debt in the way that’s right for your situation, there is very little risk. You just have to make sure you’re using the right option for your unique financial circumstances.
Of course, if you use the wrong consolidation option, then you could be looking at actually increasing your monthly payments or paying more in added interest before the debt is paid off. In addition, if you don’t complete your debt consolidation plan correctly and make all the payments on time, it could damage your credit.
But again, you don’t have to worry about any of that as long as you have the right debt consolidation program for your situation. The payments should be manageable for your budget and as long as you stick with your payment plan, you shouldn’t have any trouble.
If you’re in doubt about debt consolidation
If you’re considering debt consolidation, but want to make sure you’re choosing the right option for your situation, call us today. A certified credit counselor will evaluate your situation for free and help you identify which options will work for you. To get started, call or request for a free Debt & Budget Analysis online now.