Consolidation Companies -New York
For many residents in New York and across America, credit card debt has become an unfortunate part of life due to any number of reasons and made debt consolidation companies a source for help. Like many, your debt may be the result of the loss of a job or income, personal hardships, or escalating medical costs.
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If you have also been hit hard financially and are falling months behind on your credit card payments, you might be interested in finding out how consolidating your debts can potentially lead to savings, every month, and provide a way to pay down your debts at an accelerated rate.
Companies that offer debt consolidation services typically work with consumers who carry multiple, high-interest credit card debts and other unsecured debts (like medical bills, utilities, department store charges). What debt consolidation allows you to do is to combine all your debts into a single, easier-to-manage and more affordable payment which, if followed faithfully, can help you pay off your debts sooner than if you only continued to make monthly payments at higher interest rates.
As an alternative, there are also many companies that offer debt settlement services, which is another viable form of debt relief. With debt settlement, you are given the opportunity to settle, or negotiate, with credit card companies for substantially less than what you owe. Today, both debt settlement and debt consolidation have become popular alternatives to declaring bankruptcy - which can help clear out debts, but it can have a more damaging and longer lasting impact on your personal credit.
To explore your debt relief options, request a free debt relief analysis and savings estimate. Begin here.
Benefits of Consolidating Debts
While the circumstances that have led many consumers deeper and deeper into debt may vary, one thing is certain - your debts won't just magically disappear. If you are also struggling with credit card debts and are going nowhere with your payments, you may be interested in what debt consolidation can do for you.
Facilitated by credit counselors, debt consolidation typically begins with a review of your outstanding debts and a determination of how much of you can reasonably dedicate to paying off your debts. After developing a relief game plan to help you pay off your debts at an accelerated pace, credit counselors submit proposals to your creditors asking for a reduction in interest rates or a waiver of any late fees and other penalties.
The goal is, with a more affordable and simplified payment plan, you can ideally direct more of your payment into paying down the principal on your debts versus just the interest.
How Debt Settlement Can Help
Debt settlement, as a form of debt relief, is fundamentally different from debt consolidation through credit counseling. With debt consolidation, you are paying the entire amount of your debts with more lenient payment terms; with settlement, you are hoping to settle, or negotiate, with creditors for substantially less than what you owe. Many credit card companies view debt settlement as a viable alternative to selling off "bad debt" to third-party debt collectors who often pay them as little as 10 cents on the dollar.
For many consumers, debt settlement can be a smart financial move, but it also has potential risks: When you enroll in a debt settlement program, you are 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 defaulting on the terms of your credit card agreements.
In addition, when consumers settle with a credit card company, those that generally had good or excellent credit prior to debt settlement will see a decline in their credit ratings. 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.
How To Choose A Debt Relief Company
If you are ready to take the next step in exploring your debt relief options, a reputable debt relief company or agency can certainly help you. As you compare and contrast your debt relief options, do your due diligence. It is generally recommended that you review a company's Better Business Bureau (BBB) rating to find out the company's track record of customer service.
The bottom line is, if you are overwhelmed with credit card and unsecured debts, you have many debt relief options available that can help you pay down your debts, and help you get a new lease on life.
Compare your debt relief options - such as what different companies offer in the way of debt consolidation versus debt settlement. Start today by getting a free debt relief analysis and savings estimate. at no cost or obligation to you!