subject: Debt Consolidation Faqs That You Must Know [print this page] Here are some debt consolidation FAQs that will help you to decide if consolidating all of your debt into
one payment is right for you. It is essential that you understand that there are certain pros and cons
regarding debt consolidation and it will differ among individuals.
1) What exactly is debt consolidation?
It's a manner of combining all your active debts by taking out a new loan or remortgage that'll help
you pay almost all of your debt quickly.
2) Do I need to consolidate my debts?
This is the most common debt consolidation FAQ. Debt consolidation could raise your disposable income (spending money) by reducing your monthly payment that used to go towards your credit cards.
It will make your living a lot easier. The more debt you possess, the harder it is to keep track of them.
Making late payments will worsen your credit rating and cause late fees.
3) How can debt consolidation reduce my monthly expenses?
Many unprotected debts (mostly department store and credit cards) have greater interest rates. If you
find a debt consolidation loan with a cheaper interest rate, this will likewise minimize your monthly payment.
4) Do I need to have a property to consolidate my debts?
No. You could get rid of unsecured debt even if you dont posses any property. However, your interest
rate will be higher if you dont use your home as collateral for the loan. Quite simply, youll be less likely
to find a consolidation loan with a desirable interest rate. Also, you can certainly minimize your monthly
payments by choosing to pay the debt over a longer time frame.
5) Will there be downsides to debt consolidation?
A debt consolidation company may charge you high closing costs, so shop around. Make sure you get
the estimate of the closing costs in writing. Some unscrupulous lenders will verbally state a figure and
then when it comes time to sign the loan documents, the number suddenly increased!
Another potential down side is that it furthermore permits you to cause new debts, since you have a
credit limit on your cards with a zero balance. This is too tempting for most people.
6) What's the distinction between a debt consolidation loan and a debt consolidation mortgage?
In a debt consolidation mortgage, you eliminate a new mortgage significant enough to repay your
unprotected debts and your mortgage. If you perform this, youll just pay once a month your mortgage
payment. With a debt consolidation loan (secured or unsecured), you borrow enough to settle your
unsecured debts.
If you cant qualify for a debt consolidation loan, then I suggest that you seek advice of a debt consultant
in order to pay off your unsecured debt as quickly as possible. I hope these debt consolidation FAQs
helped you.
Debt Free Solutions is a debt consulting company located in Long Beach, CA. We have been in business for 10 years. We assist Americans across the U.S. to eliminate excessive credit card and other unsecured debt.
We utilize various programs and strategies to aid them in dissolving their debt in the quickest, safest, and most efficient method possible. We also analyze the risk factor. We structure our programs to drastically minimize the risk that is inevitable with all debt elimination programs.
We offer our clients much more than a debt settlement company does. The vast majority of debt negotiation companies simply settle your debts on your behalf with your creditors- nothing more.
On the other hand, we provide free services to significantly help to minimize the risks that are involved wIth negotiating with your creditors.
First, we offer a free, no-risk 10 day trial service. During our free trial, we negotiate with your creditors on your behalf to lower your interest rates. Also, we research to see if you have any old debts that you are not legally liable to repay. If, for any reason, you are not completely satisfied, you simply walk away. No commitments. No contracts.
Next, we provide a comprehensive credit repair service to all our clients. This is a $795 service that is absolutely free!
Also, we offer free attorney consultation (a maximum of five sessions) in case one or more of your creditors makes any threats.
Last, we provide a written guarantee that our clients creditors will settle for an average of 50% or more for all of the debts they attempt to negotiate.
Our services are competitively priced- and include the above free services!
