What Is Debt Consolidation And What Options Do I Have In Laredo Texas?

One option to consolidate debt is by combining more than one debt obligation into a new loan with a more favorable term structure, such as a lower interest rate.  The amount received from the new loan is used in paying off the older loan with the help of a bank or credit union offering Debt Consolidation in Laredo. Many people cannot qualify for this type of debt consolidation because it requires an excellent debt-to-income ratio and very high creditor scores.  Fortunately, there are other ways to obtain Debt Consolidation in Laredo.

Consider consolidating debt with Credit Counseling programs.  Credit Counseling is also referred to as a Debt Management Plan and does not require a good credit score, but you will need to be able to afford the monthly payments.  These plans offer the benefit of lower interest rates and lower monthly payments.  The other benefit is that debt can be paid off somewhat quickly, often in 5 years or less.

A third option is to utilize Debt Relief or Debt Settlement in Laredo to negotiate reductions in the balances.  This option also provides the convenience of one monthly payment, but it is designed for people who are in financial hardship.  The monthly amount could be less than half compared to the minimum payment in many cases.


Importance of choosing the right option for Debt Consolidation

Many Texans have used Credit Counseling in order to obtain Debt Consolidation in Laredo. Many others have used Debt Settlement and Debt Relief in Laredo as other options.  There is a rise in this demand for Debt Consolidation Services because of the benefits.  Here are some additional facts about different forms of debt consolidation and debt relief. 

  • A Debt Consolidation Loan could further improve your credit score:  If you consolidate all your loans by taking a low-interest personal loan, then you can enhance your credit score in a few months as you will be reducing your rate of credit utilization.  Keep in mind that you will need excellent credit scores to obtain a debt consolidation loan, so this can be a catch-22. 
  • Debt Consolidation will turn multiple payments into single payments:If you have multiple high-interest card balances on your shoulder, consolidating all the debts into one single source can reduce the stress of multiple payments. This can also reduce the amount you pay each month and shorten the time to pay off the debt by using a debt consolidation loan or credit counseling. 
  • Lower interest rates: Manyunsecured installment loans and most debt associated with credit cards have high-interest rates. Credit card interest rates can rise, making the payments unaffordable. By consolidating multiple high-interest debts into oneinstallment loan or by using credit counseling, you are lowering the interest rate and will have one fixed payment.
  • Credit Counseling:  Unlike debt consolidation loans, these programs do not require an excellent score to lower the interest rates.  If you have excellent credit scores, these programs will cause a reduction in the scores.  The benefits may far outweigh the lower credit score because the interest rates may be significantly reduced.  The lower interest rates may allow a lower monthly payment than making the combined minimum payments, and the time frame to pay off the debt could be reduced to 5 years or less.
  • Debt Relief or Debt settlement:  As with Credit Counseling, these programs also do not require a good credit score.  The savings can be huge because the principal balances are negotiated and reduced, not just the interest.  These programs can allow for the lowest monthly cost compared to the other options, and the time frame to resolve the debt can be the shortest.  Most debt settlement programs are estimated between 24 to 48 months but can be as short as 12 months. However, debt settlement is a hardship program and is designed for people who want to avoid bankruptcy.  If you have excellent credit scores, they will be reduced, but you may be able to eliminate the debt and rebuild your credit somewhat quickly.  Another benefit of eliminating the debt is improving your debt-to-income ratio, which is often more important than a credit score. 
  • Less stress:  Any of these options will reduce the financial stress in your life.  You can manage your payments easier with and focus on paying one monthly amount.  

Affordable Debt Consolidation is not a lender and does not loan anyone money.  However, their Texas Debt Specialists have resources and can make recommendations if a Debt Consolidation Loan is right for you. Affordable Debt Consolidation does offer Credit Counseling, Debt Settlement, and Debt Consolidation in Texas.  Learn the pros and cons of each option.  Talk to one of their friendly and knowledgeable Texas-based Debt Specialists to learn about their advantages and savings over out-of-state companies.  Ask about their lowest-fee guarantee and start eliminating the stress of your debt today. 



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