Are expensive credit cards and loans weighing you down? Do you want to make a fresh start with your finances? We are looking to save you money and our dedicated team will explore every avenue to bring back a smile to your finance. Our dedicated team specialise in researching the market to obtain the best mortgage deal at the right rate for you, lifting that heavy financial burden you're carrying around. We want to put a smile on your face by saying - WE CAN HELP.
To reduce your debt with a poor credit history, you have several options. While none will solve your credit problems overnight, they can help you get on better financial ground. A debt consolidation loan can help you reduce your monthly payments, while lowering interest rates. A debt consolidation program services your debt and negotiates lower interest rates. The final option of debt settlement or bankruptcy pose longer credit repercussions.
Debt Consolidation Loan
A debt consolidation loan is either a home equity loan or a personal loan which is used to pay off your bills and unsecured debt, including credit cards. A home equity loan allows you to deduct your interest from your taxes.
With both types of loans, you can negotiate terms for smaller payments over a longer period. However, remember that you will be paying more in interest this way. You also want to make sure that your debt consolidation loan has lower interest rates than what you are currently paying.
Debt Consolidation Program
Debt consolidation programs service your debt by negotiating lower fees with your creditors and administering payments. All debt consolidation companies will get you the same low interest rate on bills since this is predetermined by the creditors. The difference between companies comes from the amount they charge for fees and their customer service for following through with accounts.
By using a debt consolidation program, you prove to creditors that you are committed to paying back your debts. Within a couple of years, you can have improved your credit to the point of being able to apply for new credit, even a mortgage loan.
Advantages of Debt Consolidation
1)Eliminate, prevent, reduce further interest chargers and missed payment penalties. If the borrower has defaulted on the account, further charges are added ontop of the outstanding debt. Debt consolidation is a way of re-crediting the lender and avoiding further charges and costs.
2)Single monthly payments can cover all your debts, against this reduces the interest you pay which means more money is available to you for personal gain. Debt consolidation acts as a method of taking all the branches of a tree into one main branch. The consolidation company takes one single payment on a monthly basis which is then distributed across those of whom are owed.
3) Reduced rate of interest, Counselors working in the consolidation program negotiate with the creditors and achieve a much lower rate of interest. This way the debts are restructured with new interest rates and the minimum payments are also less than they once were.
4) Structure repayment plans with advice, Counselors prepare a repayment plan for those looking to consolidate their debts. The repayment plan is useful and lets consumers save some money for various situations; hence the chance of getting default on debt consolidation program is reduced.
5) Freedom of debt is closer, People tend to pay minimum on their credit cards and revolve the balance to successive months. This elongates the indebted period infinitely. Even if anyone pays little more than the minimum, it might take 12 – 15 years to become debt free. The result is, you keep paying more and more to the credit card company.
A successful debt consolidation program can make one debt free within 2 to 4 years and saves some money for you.
6) Stop those unwanted calls, letters and bailiff threats. No one likes being hassled, it can become very frustrating. Debt consolidation satisfies the creditors to
the point in which there is minimal contact made.
7) Improve your credit at the same time. Making reliable payments and meeting payment deadlines in the debt consolidation program will improve your credit score, as you show that you can manage your payments, how ever this does take a long period of time, usually a year at minimum to start noticing the benefits.
