Reduce your interest rates and monthly payments
What is debt consolidation?
Debt consolidation is the process of combining multiple debts into a single monthly payment. This provides several benefits:
- It simplifies bill payments
- You can reduce or eliminate interest charges
- It lowers your total monthly debt payments
Debt Consolidation in Action Featured Story
Debt Consolidation in Action – a case study from Texas
This month’s featured debt consolidation case is from El Paso, Texas. Karee had almost $16,000 in credit card debt when she came to Consolidated Credit.
The credit counseling team negotiated her interest rate down to 5.73%. And as a result, her monthly payments dropped by over 50%, from more than $600 a month to just over $300 a month. And instead of taking over 11 years to pay off her debt, it took less than 5 years.
Karee saved almost $6,500 in interest charges alone. And she had this to say about her experience: “Paying off my debt has been simple and stress-free from the beginning. Everyone has been very helpful and supportive. I never thought I’d ever be out of debt, but in less than a year I will achieve my goal!
Comparing options to consolidate
There are 3 basic options for consolidating unsecured debt like credit cards:
It’s important to note that the first two options offer do-it-yourself consolidation. While people often prefer DIY solutions, make sure to evaluate these options carefully. There are certain increased risks that come with consolidating debt on your own.
Is consolidation the right choice for you?
This is not the only solution you can use to eliminate debt. However, it is one of the best solutions available to lower monthly debt payments and save your credit.
Where do I go to consolidate?
It’s not always necessary to go through a third party to consolidate your debt. For DIY debt consolidation solutions, you simply work with a lender or creditor to get the financing you need for consolidation. However, the management of the plan rests solely with you. Only assisted debt consolidation requires third-party help all the way through the program.
- Consolidation Help Guide: Where to go to start your consolidation plan
- Comparing Companies: How to choose a reputable program provider
Specialized options for consolidation
Debt consolidation can work for more than just credit cards. Other unsecured debts, such as payday loans and medical debts, can be consolidate as well. There is also specialized consolidation for student loan debt and debts held by military Service Members and Veterans. The following articles can help you explore these solutions:
- Consolidate Medical Debt: How to consolidate unpaid medical bills that have passed to collections.
- Payday Loans and Consolidation: It is possible in some cases to consolidate payday loans; learn how.
- Military Consolidaton Guide: Explore specialized debt consolidation options that are only open to Service Members and Veterans.
- Student Loan Consolidation: Learn how to consolidate private and federal student loan debt to accelerate repayment.