Bad Credit Loan-New York
If you have been struggling with high credit card debt, causing you to fall several months behind on your payments, you're not alone. Many residents of New York and all over America are also experiencing their own debt crisis and may have seen their credit rating go from good to bad. The good news is, there is help available. These days, your available debt relief options may include debt consolidation through a credit counseling agency, debt settlement, loans, or even bankruptcy. Here's a brief overview:
Debt consolidation typically involves combining, or "consolidating," your credit card debts into a single, more structured, and more manageable payment made to a credit counseling agency. In contrast, debt settlement allows many consumers who are truly buried in debt to settle, or negotiate, with their creditors for substantially less than what they originally owe. Finally, personal loans typically involve combining your high-interest credit card debts into one, lower interest loan. These days, these debt relief methods have become popular alternatives to bankruptcy which can provide many consumers a fresh start, but it affects one's credit rating in more damaging and longer lasting ways.
To see if you qualify for debt relief without a loan and to see how much you can save, request a free debt relief analysis and savings quote today.
Debt Consolidation Benefits
As noted earlier, debt consolidation or a debt management plan is a popular debt relief option among many consumers who are searching for a more structured and predictable path to becoming debt-free. Debt consolidation typically involves combining or "consolidating" debts spread across multiple credit cards, as well as other types of unsecured debts like utilities, medical bills, or department store charges, into a single, more affordable, and more manageable monthly payment made to a credit counseling agency.
When you enroll in a debt consolidation program, you will generally get a one-on-one consultation with a credit counselor who will review your finances, income, and total debt amounts. Once they have a clear picture of your finances and determine a reasonable amount that you can allocate to paying off debts, they will typically develop a strategy that can hopefully lead to a more lenient and more affordable payment plan. This strategy generally involves submitting proposals (on your behalf) to your creditors asking for reduced interest rates, or waiving or elimination of any late fees or penalties.
Creditors that agree to the proposals are placed into the debt management plan. As mentioned earlier, the goal of debt consolidation is with a single, more structured, and more affordable payment plan, you can typically direct more of your payment towards paying off the principal of your loans rather than just the interest and eventually, reduce your debts sooner than if you continued making the monthly payments on your credit card debts at higher interest rates.
"Pay Off Debts with a Loan?"
Depending on their debt situation, many consumers may consider personal loans to help pay off their credit card debts. As noted earlier, a debt consolidation personal loan typically involves combining your high-interest credit card and unsecured debts into one, lower interest loan. Take note: A debt consolidation loan involves taking unsecured debt and paying it off with funds that come by way of a "secured" loan, or a loan where you would have to put up a collateral, like your home or other asset.
Keep in mind that unlike debt consolidation through credit counseling, loans are generally associated with certain risks. Many consumers who get a debt consolidation loan generally end up using their credit cards again, and accumulate new, high-interest credit card debts to deal with on top of their loan. Under this scenario, a debt consolidation loan has generally made their debt situation go from bad to worse.
In comparing a personal loan with debt consolidation, a loan may be a smart move for disciplined consumers, however, debt consolidation through credit counseling does provide a way to consolidate high-interest debts into a single, more affordable payment plan, and may be a preferred way to pay off your debts on a set schedule.
To see if you qualify for debt relief without a bad credit loan, request a free debt relief analysis and savings quote today.
"How Much Can I Save with Consolidation?"
For many consumers who have the discipline to monitor their budget and stop using their credit cards, debt consolidation may put them on a path towards reducing their debts and potentially lead to savings. Keep in mind, however, that while it is the credit counselor's responsibility to request from your creditors a more lenient repayment plan, it is your responsibility to ensure that you have the funds available in the account set up by the credit counseling agency.
In addition, make sure that you understand how much savings you can potentially get, every month, when you enroll in a debt consolidation or debt management plan. Typically, your savings depend on several factors: the total amount of your debts, the current interest rates, and any late fees or penalties.
The bottom line is, if you are ready to pay off, manage, and reduce your credit card and unsecured debts, take the next step and find out what debt relief can do for you and your family. Compare your debt relief options now by answering a few questions to get your free debt relief analysis and savings estimate. Start today!
For many consumers, debt settlement is a smart financial move, but like other debt relief options, it also has potential drawbacks: When you enroll in a debt settlement program, for instance, you will be typically advised to stop paying your credit cards and start accumulating funds over a certain period of time that you can later use to make a reasonable settlement offer. In this scenario, when you stop paying credit card companies, you run the risk of being sued for, essentially, defaulting on the terms of your credit card agreements. In addition, when consumers settle with a credit card company, those that generally had good credit prior to settling may see their credit scores go down. However, in spite of the risks to their credit score, the impact of debt settlement is still not nearly as severe or long lasting as bankruptcy.
The bottom line is, there is a viable solution to your debt crisis and a way for you to regain control of your finances - whether it is in the form of debt consolidation or credit card debt settlement. Take the first step in finding out how debt relief can help you by getting a free debt relief analysis and savings estimate - at no obligation to you.