The Debt Archives
You need a budget. Budgeting isn’t just for when you find yourself in credit card debt (although that’s a big reason people start their budget), and they aren’t just for […]
The New York state comptroller’s office just released information about credit card debt in the United States. The four states with the highest populations had the most overall credit […]
It’s now the end of January, and in mailboxes across America, credit card bills from the holidays are arriving. January statements tend to be the largest ones of the year […]
The Federal Reserve, in their monthly report released Monday, noted that American credit card debt has reached a record high. The current amount of credit card debt owed by Americans […]
Unsecured Debt When it comes to debt relief, unsecured debt is more commonly settled and consolidated than secured debt. Unsecured debt is not tied to assets or collateral, and often […]
Good and Bad Credit Scores for Debt Relief Good credit isn’t necessarily required to enter a debt consolidation, of debt settlement program. While a good credit score will most likely […]
Collectively, around 43 million Americans have student loan debt. In fact, Americans owe around $1.3 trillion in student loans debt. For federal student loans, there are a variety of loan […]
While chapter 7 and chapter 13 bankruptcy erases most unsecured debt that is not considered a “priority,” it is still extremely difficult to get rid of these types of debt. […]
What Is Collections? If possible, it is best to avoid the headache and stress of having a bill go into collections. Not only is it typically a negative experience, but […]
About the Balance Transfer Credit Card People wanting a credit card to help with debt consolidation can apply for a balance transfer credit card. This card can help consolidate debt […]
- Takes your existing debt and try to settle with your creditors for a lower amount. If you pay off the settled amount, your debt will be considered paid in full.
- Negotiates with your creditors on your behalf.
- Fee based on a percentage of your total starting debt or a percentage of the debt they save you.
- Most settlement companies have you create a separate "escrow" account where you will make monthly contributions over a certain amount of time to contribute to your settlement. Once there is a substantial amount of funds to show your creditors, the settlement company will try to negotiate a lower amount of debt.
- Combines all your debts and creditors into one monthly payment.
- Allows you to pay one monthly payment to the consolidation company, instead of multiple payments to different creditors.
- You no longer owe your original creditors; instead you pay one monthly payment to your consolidation company.
- Consolidation companies can help negotiate lower interest rates on your debts and help lower your total debt payment in the long run. A lower interest rate will lower the amount you owe in the end.
- Allows you to consolidate all your different debts into one personal loan that can be paid off over time.
- Can offer borrowers a lower interest rate with a longer payback term (compared to high-interest credit cards or medical bills). This will lower the amount of money required to pay off the loan over time.
- Personal loan debt consolidation can be an effective way to raise your credit score quickly (within 3-6 months).
- Borrowers can receive funds from their loan within only a few days.
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