Get a Free Debt Consolidation Quote Before Choosing a Debt Consolidation Company
Consolidating your debt through a debt consolidation company can be a good way to avoid falling behind on monthly payments and in turn protect your credit score.
Before you select a company, get a free debt consolidation quote from several companies and compare to ensure that you get the best rates.
With a debt loan, all of your unsecured, consumer debt is lumped together into one loan, usually accompanied by lower and/or fixed interest rates and lower monthly payments.
A consolidation loan can be a secured loan with a house, vehicle or other property as collateral, or an unsecured loan done through a debt company.
Getting a secured loan is usually preferable to an unsecured loan, as interest rates tend to be lower; however, you usually need a good credit score in addition to some form of collateral.
If you don't have anything to put up for collateral, and/or your credit is poor, then you will likely have to use a debt consolidation company to get another unsecured loan.
In this process, the debt consolidation company buys your loans from your creditors at a discounted rate, and then reconfigures your loans into one lump sum amount, usually with a lower or fixed interest rate.
With debt settlement, your monthly payments are lower, but the loan usually takes much longer to pay off.
The number of debt negotiation companies has recently increased due to the rise in unemployment and struggling economy.
While many are legitimate and reputable, just as many are not.
That is why it is important to do your research and get several quotes.
When you call, ask for a free consultation.
Be wary of any company that wants to charge you for information, or wants you to pay fees up front.
Remember, you will be paying this company interest rates on your loan, so be careful of other charges.
At your consultation, present all of your debt information and a prepared budget.
In turn, be sure to find out all terms of the loan, including monthly payments, life of the loan, and interest rates.
They should also be able to tell you how much you will pay in interest once payment is complete.
Once you have gotten a free debt consolidation quote from several companies, sit down and make comparisons with your budget in hand.
Weigh the different monthly payments, interest rates, and payoff periods to decide which, if any, are right for you.
Before you select a company, get a free debt consolidation quote from several companies and compare to ensure that you get the best rates.
With a debt loan, all of your unsecured, consumer debt is lumped together into one loan, usually accompanied by lower and/or fixed interest rates and lower monthly payments.
A consolidation loan can be a secured loan with a house, vehicle or other property as collateral, or an unsecured loan done through a debt company.
Getting a secured loan is usually preferable to an unsecured loan, as interest rates tend to be lower; however, you usually need a good credit score in addition to some form of collateral.
If you don't have anything to put up for collateral, and/or your credit is poor, then you will likely have to use a debt consolidation company to get another unsecured loan.
In this process, the debt consolidation company buys your loans from your creditors at a discounted rate, and then reconfigures your loans into one lump sum amount, usually with a lower or fixed interest rate.
With debt settlement, your monthly payments are lower, but the loan usually takes much longer to pay off.
The number of debt negotiation companies has recently increased due to the rise in unemployment and struggling economy.
While many are legitimate and reputable, just as many are not.
That is why it is important to do your research and get several quotes.
When you call, ask for a free consultation.
Be wary of any company that wants to charge you for information, or wants you to pay fees up front.
Remember, you will be paying this company interest rates on your loan, so be careful of other charges.
At your consultation, present all of your debt information and a prepared budget.
In turn, be sure to find out all terms of the loan, including monthly payments, life of the loan, and interest rates.
They should also be able to tell you how much you will pay in interest once payment is complete.
Once you have gotten a free debt consolidation quote from several companies, sit down and make comparisons with your budget in hand.
Weigh the different monthly payments, interest rates, and payoff periods to decide which, if any, are right for you.