By using debt consolidation, you are choosing to combine all of your bills into one simple affordable monthly payment. This is can truly be life saver since you are only required to write out one monthly check instead of several. When you’re going to use this kind of a service, you should know a few things first.
Do you hold a life insurance policy? Consider cashing out the policy, in order to meet the demands of your overwhelming debt. Call your insurance agency to see if you can cash in your policy. You may be able to borrow against your investment to pay for your debts.
Let creditors know you are using a debt consolidation agency. Some creditors will work with you to lower your interest or adjust payments as necessary. This is crucial, as they’re probably unaware you’re speaking with others. Just having an intention to get things straight goes a long way with a lot of companies.
Mortgage Rates
If you are a homeowner in need of debt consolidation, consider the possibilities of refinancing your mortgage and using the money for debt relief. Mortgage rates are low right now; it’s the right time to take advantage of this method. Also, you may find mortgage rates to be lower.
Sometimes, you can use your retirement or 401K money to pay for credit cards. However, you should only do this if you are certain you will pay back the money. If you are unable to, you may have to pay a penalty fee or taxes.
Figure out if you’re dealing with people that are certified to counsel you when getting debt consolidation. Agencies such as the NFCC ( National Foundation for Credit Counseling) can recommend reputable companies with qualified counselors. Doing so will give you confidence in your decision and choice of company.
One thing you can do to get debt consolidation services would be to borrow money from people you know. Note, however, that this can be quite risky to the relationship if the loan is not repaid. Only do this if you are going to pay it back, since this might be your last chance.
A debt consolidation company should try using methods that are personalized. If you notice that the counselors do not ask you specific questions about your financial situations and want you to quickly sign up with them, avoid them. Debt counselors need to offer customized solutions.
Investigate how well a debt consolidation company communicates with customers. You could encounter questions or concerns after you sign the agreement; therefore, you will want to be able to contact them and have them answered. Make sure they’re easy to touch base with, by phone, email, fax or other methods, so that you never have to wait for an answer to an important question.
Debt Consolidation
Learn the physical location of your debt consolidation service. Some states don’t require licensing to have a debt consolidation agency. You have to be positive that the company you go with isn’t located in a state like this. Some simple online research will give you all the information you need regarding the licensing of debt consolidation professionals.
When consolidating debts, the outcome is to be able to have one affordable payment each month. You might choose to do this in 5 years, or choose a longer or shorter term. This way, you can work towards a goal and know when you will pay off your debts.
Debt consolidation agreements in the context of Chapter 13 bankruptcies may help you hang onto real estate. If you’re able to get everything paid off within 5 years you may be able to keep your personal and real property. You might even be able to get interest payments eliminated altogether.
Debt Consolidation
Debt consolidation is a great idea if you feel overwhelmed with payments. Use the information from this article to help get your finances on track. Read more to be sure you know everything there is to know about debt consolidation.
This is a limited-time offer. We are not able to guarantee availability if you wait!
