Taking control of your debt
What is Debt Consolidation?
Debt consolidation involves taking several debts, such as credit cards, medical bills, personal loans, and more, and combining them into one bill (preferably at a lower overall interest rate). So instead of sending payments to multiple creditors each month, you can make one payment to cover everything. This generally results in lower total monthly payments, and can help you avoid late payment fees and other penalties, since the billing and financial tracking is much easier to handle.
Our goals: helping you get out of debt sooner, lowering your interest rate and monthly payments, and protecting your credit score.
How Does Debt Consolidation Work?
First, we determine if your financial situation warrants, and makes you eligible for, debt consolidation. Factors we consider include your income, your credit standing, how much total money you owe, how many loans or debt sources you have, and the terms of those debts.
There are several debt consolidation options, depending on each individual’s situation. They can include credit card consolidation, a personal loan, a home equity line of credit, or a home equity loan, among others.
Any of these solutions would ideally result in a smaller monthly payment, so the debt can be paid off more easily. While this may create a longer repayment period, the total payments would be less. Paying off the debt would be combined with more disciplined budgeting (to avoid more debt), followed by a savings plan.
What Will I Need?
Making a debt consolidation decision requires you to gather all the bills on which you are carrying debt. These could include credit cards, medical expenses, utilities, phone bills, and vehicle debts, for example. Try to determine how much you can afford to pay every month, leaving yourself enough for regular expenses like mortgage or rent, food, and transportation. Once we have your numbers in hand, along with other relevant financial information mentioned above, we can work with you to consolidate your debt.
Living Smarter Going Forward
If you’re approved for debt consolidation, we'll work toward getting your debts paid, improving your credit, and moving forward with a sound savings plan.
Make an appointment today to inquire about debt consolidation.