Your step-by-step guide to consolidating debt.
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Are you struggling to manage all of your debt obligations? Would you benefit from combining all of your debts into one monthly payment, potentially reducing the burden of interest and fees? If you are experiencing financial hardship, debt consolidation may be right for you.
Debt consolidation is the process of turning multiple debts into one financial obligation. This is often done by taking on another line of credit, like a credit card or a personal loan, and using those funds to pay off existing debts. Another common consolidation tactic is to enroll two or more debts with the help of a debt consolidation service. Consolidation can help streamline your payments, make your finances less overwhelming, and is a great bankruptcy alternative.
Consolidation is usually done using one of three methods:
You can quickly pay off multiple debts using the money gained from a new loan, allowing you to focus on one monthly payment instead of multiple bills. This method is better for people with a healthy credit score, as a lower score could lead to a high-interest rate loan.
For as low as a 1-3% fee, you could transfer your debts from existing credit cards to a new card with a low or 0% interest rate. However, these rates are typically introductory and only available for a limited time, so it’s crucial that you have a plan set to pay the card off as quickly as possible.
Debt consolidation services allow you to combine multiple debt obligations into a single monthly payment. They also work to offer customized solutions that could lower eligible monthly payments by 40% or more and significantly reduce the burden of interest.
If you are looking for ways to get out of debt and have the discipline to stick to your consolidation plan, you could see your debts eliminated in as little as 24-48 months. Benefits of consolidation include:
Simplified Payments: Merging multiple debts into one reduces the number of payments, due dates and account logins you have to remember.
More Manageable Debt: If you’re feeling overwhelmed and losing track of multiple payments, reorganizing your debts through consolidation can help make things less confusing.
An Assigned End Date: Sometimes the best motivation to pay off debt is knowing there’s a light at the end of the tunnel. Most debt consolidation companies create a customized payment plan and a target graduation date, allowing their clients to better see their progress and work their way toward the finish line.
We understand how stressful and overwhelming it is to be in debt, which is why helping you pay off your debts as efficiently as possible is our top priority. Our team is ready to review your unique financial situation and match you with the best debt consolidation option possible.
You can get started with Accredited Debt Relief by applying online or calling us at 800-497-1965. We’ll then put you in touch with one of our Consolidation Specialists who will review your current financial needs and provide you with a personalized plan. Our previous clients have been able to overcome their enrolled debts in as little as 24 to 48 months.
With an A+ rating from the BBB and our American Fair Credit Council (AFCC) accreditation, we’re committed to providing our clients with excellent service. Learn more about your debt and bill consolidation options by contacting Accredited Debt Relief today.
Linda's attempt to help a struggling friend led to a massive amount of credit card debt. Accredited Debt Relief helped her eliminate her $30,000 of debt, giving her peace of mind and a brighter outlook on life.
Depending on finances and credit history, debt consolidation may or may not be your best option. Consider the pros and cons to consolidating:
Pros
Simplified Debt Management: One monthly payment is easier to keep track of than multiple creditors, payment amounts and due dates.
Pay Off Debt Faster: If you consolidate your debt, you’re much more likely to pay everything off faster than if you continue to only make your minimum payments.
Fixed, Lower Payments: Clients who consolidate through a debt consolidation company often receive a consistent, lower monthly payment. With a predictable deposit schedule set in place, you can create a budget that leaves room for other expenses.
Cons
Temptation to Spend: Debt consolidation on its own will not help you develop better budgeting or spending habits.
Doesn’t Always Reduce Your Monthly Payments: Some consolidation strategies like loans may not reduce your monthly payment enough to get you immediate relief — you’re simply moving the debt to a new location. However, some methods of debt consolidation can reduce your eligible monthly payment by 40% or more.
Debt consolidation involves combining multiple debt obligations into one monthly payment to simplify the repayment process. Consolidation can be done through personal loans, credit card balance transfers and with the help of debt consolidation services.
Yes! Although it’s not guaranteed, many people save money and time with debt consolidation. Many people may receive a lower monthly payment and pay off their debt in 24 to 48 months.
Your credit score can be impacted if you consolidate your debt. However, your credit score can recover over time if you practice good financial habits, like making consistent monthly payments and reducing your credit utilization.
We recommend working with a top-rated debt consolidation service that has experience assisting their clients with their debt. You can verify the trustworthiness of a company by looking for positive reviews from their customers and reviewing their accreditations.
Accredited Debt Relief has helped people across the country consolidate and overcome their debts. With an A+ BBB rating, we offer customized financial solutions that can help you get out of debt. To learn more and receive a free, no-obligation consultation, contact us today.
Loans are typically paid in monthly installments that include interest and fees accrued. They can be an effective way to overcome debt, but only if you meet specific criteria.
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Consolidating your credit card debt can help simplify your monthly payments and fast track you to paying off your debt. Unfortunately, there are a few things that can derail your progress.
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Debt consolidation is a common method of refinancing that involves paying off high-interest debt with a new lower-interest loan.
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