If you feel that your debt is getting out of control, perhaps now is the time to consider a debt management program that can help you get started on managing your debt. Debt consolidation allows you to take all your unsecured debt – credit cards, department store charge cards, medical bills and phone bills – and combines them into one easily manageable monthly payment.
Debt consolidation can be facilitated by either a home equity line of credit or, if applicable, a debt repayment plan. To determine if you qualify for a debt repayment plan, you will have first have to through a credit counseling agency and they would need to verify that you can get an interest rate reduction with your current lenders. If you do qualify, you can apply all unsecured accounts you would like to pay down, which would then close those accounts. You cannot use any account that you have in debt consolidation.
Also, if you interest rates average around 10% or less, a debt consolidation plan may not be the best. However, if your interest rates average around 20%, you rates would be significantly reduced. You would then pay more towards principle and therefore get your debt paid off quicker.
Debt consolidation might not be for everyone. If you think you are a candidate for debt consolidation or would like to learn more about debt consolidation and if it would work for you, call our toll free number, 1-800-621-4GOD (4463) or simply complete the online application to have a debt specialist contact you immediately.