credit score – Accessup Search Fri, 25 Feb 2022 08:00:00 +0000 en-US hourly 1 credit score – Accessup Search 32 32 Alternatives to Debt Consolidation Loans Fri, 25 Feb 2022 08:00:00 +0000 Debt consolidation loans are personal loans used to merge high interest debts such as credit cards, payday loans or other bills into a brand new fixed rate loan. Once you have received the funds for this loan, they are used to pay off your other debts. If you pay off the loan on time, get […]]]>

Debt consolidation loans are personal loans used to merge high interest debts such as credit cards, payday loans or other bills into a brand new fixed rate loan. Once you have received the funds for this loan, they are used to pay off your other debts. If you pay off the loan on time, get a lower interest rate, and don’t incur any additional debt that you can’t handle, you might be able to pay off your debt faster and save a ton of money on interest.

However, while using these loans is a good way to consolidate payments and hopefully lower the interest rate on your debt, there are several debt consolidation loan alternatives for people who don’t. may not qualify for a debt consolidation loan or those looking for lower interest rates. .

Debt Consolidation Loan Alternatives

A debt consolidation loan is not for everyone. Since debt consolidation loans are unsecured personal loans, lenders may have stricter eligibility criteria or the loans may not be large enough for the types of debts you are trying to consolidate. Here are some debt consolidation loan alternatives:

  1. Balance Transfer Credit Card: A balance transfer card allows you to transfer debt from other credit cards – usually credit cards from other companies only – or use a balance transfer check to combine other forms of debt into one 0% interest rate. This promotional low rate period typically lasts 12-21 months, and a good to excellent credit rating is required for approval. Once the introductory period is over, you will be responsible for paying the card’s standard interest rate on the remaining balance. Additionally, most cards will charge you a balance transfer fee on the total amount you transfer, usually 2-5%.
  2. Home Equity Loan or HELOC: Home equity loans and home equity lines of credit (HELOCs) allow you to borrow against the equity in your home. While a home equity loan has fixed monthly payments at a fixed interest rate, a HELOC works like a credit card and has a variable interest rate. Both can be used to consolidate high-interest debt, but you risk losing your home if you can’t pay them off. Also, both require you to have some equity in your home. In comparison to debt consolidation loans, home equity loans and HELOCs often have longer repayment periods, larger loan amounts and lower interest rates.
  3. Refinancing by collection: A cash-out refinance replaces your existing mortgage with a brand new mortgage for more than your current outstanding balance. You can withdraw the difference between the two balances and use it to improve your home or consolidate your debts. As with using a home equity loan or HELOC, you risk losing your home if you cannot repay your new loan.
  4. Debt settlement: Debt settlement takes place when you negotiate with your lender to pay less than what is owed to settle the debt. You can negotiate with the debtor yourself or pay a fee to a debt settlement company or lawyer to negotiate on your behalf. Even if you, a lawyer, or a business successfully negotiate a settlement, your credit score can take a hit.
  5. Bankruptcy: Filing for bankruptcy involves going to federal court to have your debts canceled or reorganized to give you time to pay them off. While you can pay off your medical debt, personal loans, and credit card debt in the event of bankruptcy, paying off your student loans and tax debt is incredibly difficult. Before choosing this alternative, keep in mind that your credit score will take a hit; it may take years for him to recover.

The bottom line

While using a debt consolidation loan to merge your high-interest debts might make financial sense if you can get a lower interest rate, it’s not your only option. In some cases, choosing an alternate route may be a better choice. For example, you might be able to get a lower rate by taking out a home equity loan, since it’s a secured loan backed against your home.

However, it is also important to know the risks involved in choosing such an alternative. Shop around the different options and compare interest rates, repayment terms, and the trade-offs you’ll make with each before continuing.

Learn more:

Affordable debt consolidation Wed, 16 Feb 2022 23:09:09 +0000 Credit card spending has increased in the United States due to financial constraints caused by COVID-19. Texas leads the pack behind California for states with the highest increase in credit card debt, according to a Sept. 21 study by WalletHub. And low mortgage interest rates haven’t translated into low credit card interest rates. Surprisingly, the […]]]>

Credit card spending has increased in the United States due to financial constraints caused by COVID-19. Texas leads the pack behind California for states with the highest increase in credit card debt, according to a Sept. 21 study by WalletHub. And low mortgage interest rates haven’t translated into low credit card interest rates. Surprisingly, the median interest rate on all credit cards in the Investopedia Card Database for October 2021 is 19.49%.

These high interest rates can create financial hardship for people who have significant credit card debt. High payments can make it impossible to cover rising living expenses. Debtors who have fallen behind face non-stop collection calls and sometimes debt collection lawsuits. Fortunately, there are solutions to this crippling debt. Let’s look at the most common options.

Secured or unsecured debt consolidation loans:

Unsecured debt consolidation loans involve taking out a low interest loan to pay off higher interest credit card debt. Since these loans have no collateral that the lender can seize or repossess, they require high credit scores and excellent debt-to-income ratios to reduce their risk. Most secured debt consolidation loans use home equity as collateral. In Texas, your home must be maintained at less than 80% when using equity, so not all of the equity is available through a refinance or 2nd mortgage . However, if you have sufficient equity, the credit score requirements are lower than for an unsecured loan because your home is collateral.

Debt management plan with credit counseling:

A credit counseling program can offer some of the benefits of a debt consolidation loan, including the need to make one monthly payment and lower interest rates. There is no need to take out a new loan since the rates on your existing debts are reduced, so good credit scores are not required, but you must afford the monthly payments. However, this is considered a “hard” program, so if you want to take on more debt (and have the ability to pay for it), then this is not a program you should consider. Based on your current interest

rate, the monthly payment is likely to be lower than your combined minimum payments, and these programs are designed to pay off the debt in about five years or less.

Debt Negotiation for Debt Relief

Debt negotiation, also known as debt settlement, is another common way to resolve crippling credit card debt and personal loans. This is a hardship program, and similar to credit counseling, it is not an option if you plan to apply for more debt before completing the program. These programs are usually structured to last around 24 to 48 months, depending on your monthly budget and negotiated amounts. Monthly program payments can cost less than half of minimum payments. A reputable program will not charge trading fees until a debt is settled.

The savings are the result of not making monthly payments to your creditors. Instead, money is deposited in an FDIC-insured special purpose account while debts are negotiated and settled for less than the total balances, one at a time. The program is ideal for those who are about to fall behind or those who have already fallen behind, as failure to make minimum payments will negatively affect a credit score. However, it can be a great alternative to bankruptcy, and since the program can be completed much faster than most other options, you can also start rebuilding your credit score quickly. All debt negotiation programs are not created equal. Debt Redemption trading fees are often 20-40% lower than foreign firms. They also have special resources to help Texans who have been sued by a creditor or debt collector.

Chapter 7 or 13 Bankruptcy:

Bankruptcy may be the shortest and cheapest way to settle a debt if you can qualify for Chapter 7. Many people with large incomes or non-exempt assets have issues that prevent Chapter 7 filing and chapter 13 might be the only form of bankruptcy available. In some cases Chapter 13 will be more expensive than a debt negotiation program, and in other cases it will be less expensive. If you are considering this option, consultation with a Texas bankruptcy attorney is necessary. Debt Buyback does not provide legal advice.

Get Free Debt Relief Consolidation

Affordable Debt Consolidation in San Antonio, TX also has several offices in the Lone Star State to help Texans struggling with crippling debt. If you’re considering debt consolidation loans, credit counseling, or debt settlement, a Texas Debt Specialist can provide you with a free, no-obligation phone or office consultation. We can also refer to Texas bankruptcy attorneys when needed. Learn about your options for resolving your debt today so you can start living your debt-free life. Call 800-816-1003 or visit

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The BEST BAD CREDIT LOANS with GUARANTEED Approval in AMERICA Mon, 14 Feb 2022 04:34:48 +0000 Are you in search of the most effective loan for people with bad credit with an assurance of approval? If so, you’re lucky to be in the right place. Check out the Consolidationnow Guaranteed Cash… There are numerous Americans all over the country who have poor credit scores. Are there any options to help them when they’re facing financial […]]]>

Are you in search of the most effective loan for people with bad credit with an assurance of approval? If so, you’re lucky to be in the right place. Check out the Consolidationnow Guaranteed Cash

There are numerous Americans all over the country who have poor credit scores. Are there any options to help them when they’re facing financial difficulties and require an emergency cash loan fast? Are lenders willing to grant a personal loan even though they have a poor credit score? Are there any specific bad credit loans that need to be sought to get approval?

Simply put, if have a poor credit history, it can be impossible to qualify for the personal loans you need. If that is the circumstance, there’s no reason to be concerned. There are other options you could pursue to secure the personal loan you need.

In this thorough analysis of the subject of bad credit loans, we’re going to discuss the top online platform in America for loans with bad credit. This business is increasingly popular nowadays.

Our Elite List Of the Best Loans for Bad Credit in America With a 100% Guaranteed Approval On the internet

Money Mutual – The Best Low-Cost Loans with A Guaranteed Approval Online

#1. MoneyMutual:

MoneyMutualis an outstanding business. In the field of online loans for those with bad credit, there’s no better choice than MoneyMutual.

The award-winning and well-known talk show host on the daytime Montel Williams has been a spokesperson for MoneyMutual for many years. A person of his stature is an ideal choice for the frontman for MoneyMutual.

It is impossible to fail when you need an approved loan for bad credit. The team at MoneyMutual works hard to make sure that clients get their loans in just a few hours. Because of this feature, MoneyMutual is convenient since you can pay your charges as soon as they are due.

To be eligible for a loan with bad credit it is necessary to complete a couple of online forms to apply for a short-term loan. The forms should take no less than five minutes because they’re simple and require only basic information. The maximum loan amount is $5000. Occasionally, based on your circumstances, you may obtain more.

Interest rates depend on the amount of loan. So, make sure to you should only apply for the amount of amount you need. Due to the service offered by MoneyMutual, it is not necessary to be forced to stand in long lines or conceal your identity in the public. Now, you can apply for loans and then receive them in the comfort of your home thanks because of the Internet.

If you’re connected to the internet and know how to operate on a laptop or a smartphone, you could obtain a loan. MoneyMutual is a great way to make difficult credit loans easily accessible.

The rates for interest at MoneyMutual are determined by the amount of the loan and your financial situation and the time you’ll have to pay back the loan. However, different loan terms apply. This is the reason you must study these terms and conditions thoroughly before you sign the loan.

  • Important Items to Take Into Consideration Before Taking a Bad Credit A Loan

It’s quite simple to obtain a loan

MoneyMutualwill helps you connect with your lender as soon as possible. In addition, the client can make an application for loans directly from the start and pay only a small fee for the origination because of the straightforward application procedure.

  • Are you eligible to apply for an Unsecured Credit A Loan?

It is essential to meet the eligibility requirements for the loan in an emergency. MoneyMutual will require you to be at minimum 18 years old or a US citizen or resident of the United States, earn a minimum of $800 per month, and have a checking account. Even when you’ve had a check bounced or faced other credit problems, MoneyMutual can help you get a loan for a short period.


  • Very simple to use
  • It is easy to pay your bills monthly. create.
  • MoneyMutual respects its customer’s privacy
  • You can borrow up to $5000
  • 24-hour approvals are available 24 hours a day.


  • MoneyMutual isn’t allowed to conduct business in certain US states.

Complete Customer Service Experience with MoneyMutual

There are a lot of satisfied customers who have taken loans for bad credit through the MoneyMutual. The company always strives to ensure that its customers have a great experience.

Making an application for a bad credit loan through MoneyMutual is like the opening of an account. It’s a simple and easy procedure. It is committed to providing the best interest rates for those with poor credit.

Click here to go to MoneyMutual’s official site. MoneyMutual

Money Mutual

Online LOANS for people with bad credit and the most reputable bad credit LOANS in AMERICA With a guarantee for approval online.

Certain Important Facts to know about interest rates for loans with bad credit

Simply because the interest rate isn’t too high does not mean the loan is in favorable agreement and terms. Many customers are convinced that interest rates at low levels on loans with bad credit ratings are beneficial. However, this isn’t always the case.

Remember that when you are considering online loans for those with bad credit, interest rates may differ.

Some lenders offer mixed-interest loans. Be sure to know if the loan is provided with a fixed rate or with a declining balance. Loans that are fixed in interest rate can be found with significantly lower interest rates. However, this does not suggest that you’ll be paying lower.

Check the total cost of A Loan With Bad Credit Before You Apply for One

Interest payments aren’t the only payment you have to make when taking out an unsecured loan. See below for additional charges associated with the bad credit loans.

  • The Processing Fee

It is common for lenders to add on an additional charge of 1-2% of the amount of loan. These charges are added to the overall cost of the loan. It is recommended to choose an affordable processing fee.

  • The Prepayment Fee

There are instances when you can repay the loans with bad credit. There are other instances where you won’t be obliged to pay your loan in advance. Making a prepayment, in the end, can be advantageous to you since it will reduce your interest costs overall.

The prepayment penalty should be accounted for when the total cost. Prepayment penalties are used by lenders to force borrowers into staying on the loan and pay for the total interest expense. The less penalty for prepayment the greater.

  • The Late Payment Fee for Late Payment

You’ll be charged the late payment fee if you fall behind on one payment. Be aware that your lender expects you to repay your bad credit loan in time Therefore, you must be punctual with your payments to avoid trouble for the loaner.

What is the amount you Do You Need At The End Of The Day?

We recommend that you only ask for the amount you will need. We advise you to only get what you need. The lenders will usually attempt to convince you to take out more of the loan with bad credit. But, you might not need the cash however, you do are tempted to take the risk. We strongly suggest that you avoid this. Only take what you are required. Be sure you’re capable of repaying the amount.

Be aware of the fact that loans with bad credit are among the most costly forms of debt. What’s the reason you would want to make a payment for interest on the money you don’t need? Do not fall for ego-massaging marketing advertising. Make sure you only apply for the amount you require.

Always make sure to find the best Prices Before You Purchase One

Find all over the internet for the most affordable bargains. Don’t apply without verifying the cost. This could cause hard inquiries to the CIBIL credit report, which can affect your score on credit. You can get current pricing by contacting customer support.

Beware! Be sure to stay clear of any additional offers from Your Lender

Lenders can be a bit complicated. You are often told that there are no upfront charges. However, they may add the cost of insurance to your monthly payments. Be sure that they don’t try this on you. Keep an eye on the loan offer and go through all the information about the loan before you sign it.

The reason why they are doing this is that they wish to make more money on your loan, which will increase the amount you pay in interest to them. Don’t be deceived. Be sure to read the details of your loan before you sign the contract. Be aware that you are lending money after yourself. You need to be looking for your own best rate of interest.

The circumstances of your financial life could force you to obtain a loan. There isn’t any reason to take advantage of these add-on deals. Only you are accountable. There are many additional expenses. You should decline these loan offers and only accept loans that are favorable to you.

Keep in mind that when you are looking for online loans for people with bad credit, you can choose from several options for the kind of loan you will receive.

The types of loans you can Receive With a Bad Credit Score

The well-known Payday Loans for Those With Bad Credit

If you’re seeking bad credit loans that are the guarantee of approval, then you should consider payday loans.

Payday loans are unsecured loans, but they usually are due on the borrower’s next payday, not in installments. The number of loans can range between hundreds of dollars and less. Payday loans offer short-term high-interest loans with the risk of being in the loan being canceled.

If the borrower is unable to repay the loans they have taken out, they typically request more loans which could result in more loans. This means that rates of interest rise quickly and loans that have annual percentage rates of triple digits are common.

The fabled student loans Do You Need One?

Undoubtedly, many university students live on a budget. It is good to know that many lending agencies are aware of the financial challenges that university students face and offer assistance through student loans.

Students can use this loan to pay for the expense of laptops or textbooks as well as other educational expenses which will allow them to avoid the pressure of at a part-time job as they learn.

Title Loans Defined for You

If you own a car that you own, you could apply for a vehicle title loan. In general, you can get between 25 to 50 percent of the value of your car. According to FTD the amount of title loans typically range from $100 to $5500 in the majority of cases, and you’ll have 15 to 30 days in which to repay the loan. If not, the lender can be able to take your vehicle back.

Title loans typically come with the highest annual percentage rates. If you’re approved to take out a loan, you are legally required to give up your car title until the total amount of the loan cost, including the costs, is returned.

Cosigned Loans are a Great Alternative for You. you decide

A co-signed personal loan is backed with the help of more than one individual. If you are unable to credit or have no credit at all, the lender might require you to sign with a cosigner who agrees to accept and pay the debt if you fail to pay. A cosigner is a person who guarantees the loan to the lender. The presence of a cosigner could improve your chances of approval and also provide better terms for the loan.

This kind of loan can benefit the borrowers more because they can increase loan amounts, get easily accepted by lenders, and gain other benefits from loans. This type of loan benefit goes to the borrower who might be able to get more money or have favorable terms. Be cautious when contemplating this type of loan. Keep in mind the risk of financial loss associated with it could jeopardize your relationship.

How to spot a scam before you fall victim to a bad credit loan Scam

Does the lender reach out to You Directly if You Take Out A Payday Loan?

In the case of online loans for those with poor credit How often do customers are scammed?

The lenders will only contact you only if you’ve just made an application for a loan, or if they have any questions about your credit. However, personal loan scammers typically call victims by email, phone, or in-person and ask for specific information to gain access to their accounts at banks.

True lenders might call or write but immediately solicited loan offers are almost always a scam. And even more so if haven’t yet applied for a loan in the past, If you are unsure regarding the legitimacy of a loan offer you can look up the lender’s license on the official website of the attorney general of your state to determine if the lender operates legally.

Furthermore, you may be able to discern what is a fraudulent and a legitimate lender by their sales pitch. A guarantee of approval with no clear fees or the terms and conditions of loans, or even hints at the insignificance of your credit score is a clear indication of an underlying fraud and will not be able to complete the loan with a bad credit score.

Did anyone force you to take out a loan?

If you are looking for a poor credit loan take note of special offers that are limited in time and the most urgent requirements for application. The majority of reputable lenders provide consistent loan offers that are based on factors such as creditworthiness as well as the current rates for personal loans.

Additionally, while some lenders offer fee exemptions, they will affect your interest rate or other terms. Thus, if a lending institution is trying to convince you into getting a loan offering a lower interest rate only to inform you that the offer will only be available for a short duration, it’s likely to be a scam.

If the lenders refuse to divulge fees, What Options Do You Do?

Scammers who offer low-credit loans are often deliberately vague about charges and refuse to disclose these before the time or release them upon demand. Usually, these lenders will offer undefined fees, and then reveal them only after loan approval, to convince the borrower to accept the loan.

However, creditable lenders provide all fees applicable and are clear on the price of loans. Furthermore, the costs that are typical for credit are paid at the moment the loan is closed, and not following approval. If your lender fails to provide all the application and origination fees before the closing date, you could be the victim of fraud on your loan.

Have you been advised to pay your Fees immediately?

If a lender asks for payments before or shortly after approval, you’re almost likely to be being a subject of fraud. The fees for loan origination are paid at the time of closing and are usually taken out of the loan amount.

The Benefits of The Downside of Credit Lending with Guaranteed Approval

None Credit History Assessment

If you’re thinking of getting loans for bad credit with the assurance of approval, you can’t cover up your score on credit.

One benefit of a loan with a poor credit score is that they do not look at any credit histories. This means that when the lender evaluates your loan application, they won’t consider your credit score due to previous defaults or listing may not have a bearing on the loan application.

The lender’s primary concern is to decide if you have employment that is stable or sufficient cash to cover the current costs. Additionally, you must have sufficient funds to pay the expenses of the loan. Furthermore, you should have enough assets to pay for the loans requested. It is preferable that you can prove that you can work for one year to boost your chance of being approved.

On-Time Payments Can Raise Your Credit Report In No Time!

A bad credit loan provides you with quick access to the funds needed to pay your debt. Additionally, you get the chance for managing your money effectively and pay your debt on time. A well-planned budget and a prudent approach to managing debt can increase the chances that you will improve the credit scores of your friends. This will demonstrate that you’re trustworthy and honest to a prospective lender or potential lender.

Get a Huge Sum of Cash Today!

One of the benefits of bad credit lending is the ability to obtain a huge quantity of funds. Despite poor credit, you can get a large loan. The key is to repay it and earn enough to cover the monthly installments.

Another aspect to be aware of when seeking loans is the hidden fees and costs. Be sure to check for any additional charges from lenders.

Take a look at the flexibility of the Variety of Offers

Online loans for those with poor credit may offer a lot of flexibility!

Every borrower has a different situation. This is why bad credit loans are specifically tailored to your requirements. A reputable lender will provide an amount specific to your needs. They will look at the amount of the loan and repayment options, the time frame of flexibility, the loan amount, and rates of interest, as well as other factors.

When you are deciding on the best loan for bad credit it is crucial to be truthful to yourself. Be clear about your financial situation to your lender and make sure that they know your situation. Also, don’t rush and be patient in choosing the most appropriate deal for your requirements otherwise, you could risk further damage to your credit rating.

Get the Best Bad Credit Loans with the Guaranteed Approval

Do you require money immediately? Do you have a low savings account and an increasing amount of debt? If that’s combined with a low rating on your credit report, it could appear as if all hope is gone. But, fortunately, you can be able to get loans. You can get a bad credit loan quickly.

The loans for people with poor credit are among the easiest to get. For instance, payday loans or an unsecured loan can be obtained within a few hours of the application. However, you should not just wait until your financial situation gets worse before you take the necessary action however, bad credit loans could be an option if are ever in this situation.

The most frequently asked questions on Bad Credit Loans

Can You Explain what an Annual Percentage Rate (APR) is?

Annual Percentage Rates or APRs are other kinds of rates you might face when you apply for individual loans, mortgage auto credit cards, or loans. This is the amount that you’ll be required to pay over a year, and also for any extra costs that are included in the loan.

In general, the APR will typically be 0.1 to 0.5 percent higher than that of the interest. When the APR exceeds the interest rate, expect the possibility of additional costs. Many borrowers look at APRs when looking at loan options. Be aware that the APR is negotiated by the loan provider directly. Therefore, make sure to speak to them about this, and avoid the first APR given to you by your lender. Find out if there’s an opportunity to lower the rate.

If you’re receiving bad credit loans that have assured approval, do you have to worry about collateral?

Secured Loan VS Unsecured loan Which is the better option?

When you apply for a secured loan, the lender can seize private objects like your car or home as collateral. They will keep the collateral in the event you fail to repay the loan. If you don’t pay back the loan, they will keep your possessions.

Most borrowers use Secured Loans to borrow an amount of money. A lender will only loan an amount of money with the confidence that you’ll pay it back. The placing of your home on the line guarantees that you will do all that is possible to repay the loan.

Unsecured loans cannot use your possessions as collateral. Examples include student loans, credit cards as well as personal loans. The lenders take on greater risk when they loan this type of money because it is not backed by collateral to recover in the case of default. This is the reason the interest rates have risen.

Be aware that if you apply for bad credit loans that come with the guarantee of approval the credit score might play a role.

The significance of credit scores

If you’re looking to apply for an low-credit loan be aware that the credit report is one of the first items to be scrutinized by your prospective lender. If you’ve got a high credit report, you can make use of this great credit score to secure favorable terms for credit cards, loans and insurance premiums, rental and mobile phone contracts.

We suggest that you always keep an eye on the status of your credit report. Look for unpaid payments. If you find any issues in the credit report, you can address these before they become a serious problem.

Bad Credit Loans and Our Last Thoughts

You’ve got it. Online loans for people with bad credit are real!

This concludes our in-depth review of loan with bad credit. We hope that you get something of value from this article. Keep in mind that even if are not able to credit, you may still take out an emergency loan. It can be difficult if you’ve got poor credit scores however, you are still able to apply for a loan and get one.

Companies such as MoneyMutualare one of the market leaders and provide the top loans for people with bad credit. Be sure to pay back the loan in time. Be sure to pay in time, and negotiate the conditions with your lender before you sign a loan agreement with them. Negotiating is crucial for you to speak directly with the lender since you’ll want to ensure you’re receiving a reasonable interest rate, as well as acceptable terms and conditions.

The companies mentioned in this review are at the very top of their game. They are known for their professionalism, outstanding customer service, and great reviews from customers. They can help you get the loan you need if you require it, and also if you have a poor credit score.

If you’re looking for low-risk loans that have assured approval, we strongly suggest giving MoneyMutual the chance!

Visit the Official Website of MoneyMutual For More Details

QuinStreet: Reveals Three Common Debt Consolidation Mistakes Consumers Should Avoid Tue, 25 Jan 2022 10:57:12 +0000 Missteps can derail financial goals and set consumers back Foster City, California – January 25, 2022 – “New year, new me” is resonating on social media and many consumers have made resolutions to get their finances in shape. Debt consolidation can be a vital strategy to help consumers achieve their financial goals, but if they […]]]>

Missteps can derail financial goals and set consumers back

Foster City, California – January 25, 2022 – “New year, new me” is resonating on social media and many consumers have made resolutions to get their finances in shape. Debt consolidation can be a vital strategy to help consumers achieve their financial goals, but if they make certain mistakes, they can end up in worse financial shape. To help people avoid this, AmOne.comone of the leading personal loan sites, publishes its new report Successful Debt Consolidation: Your Complete Guidedescribing the most common errors and how to avoid them.

“If you’re juggling multiple credit cards or loans, a debt consolidation plan can help you comfortably manage what you owe and strive to pay it back,” says Kristin Marino, personal finance expert at AmOne. “However, there are some mistakes you may not be aware of that can make your debt problems worse.

Three Common Debt Consolidation Mistakes

  1. Believing that the debt has disappeared when it has not disappeared: People can be so relieved to see zero balances on their credit cards and other debts that they forget they still owe their consolidated loan balance – the debt just turns into another type of debt.
  2. Failing to address the underlying issues that created the debt: If someone is prone to overspending, a debt consolidation plan may not be a long-term solution unless behavior changes, so consumers need to focus on sticking to a budget.
  3. Choose the wrong solution for the financial situation: There are several debt consolidation options available and it is important to carefully research which solution offers the best solution, balancing payment term, interest rate and other factors.

AmOne’s guide outlines why people enter into debt consolidation deals and popular products used by consumers – such as debt management plans, personal loans and credit card balance transfers – to manage their debts and achieve their financial goals.

“Whether you want to lower your payments, lock in a fixed interest rate, increase your credit score, or get out of debt faster, debt consolidation can be a useful tool for achieving those goals,” notes Marino. “Making an informed decision about the path you take to get there can be critical to your success.”

Marino is available to discuss the best debt consolidation strategies to get individual finances in order this year, common borrower mistakes, and how consumers can choose the best solution to settle their debts.

About AmOne
AmOne is owned and operated by QuinStreet, Inc. (Nasdaq: QNST), a leader in providing performance market technologies and services to the financial services and home services industries. QuinStreet is a pioneer in providing online marketplace solutions to match searchers with brands in digital media. The company is committed to providing consumers with the information and tools they need to research, find and select the products and brands that meet their needs. AmOne is a member of QuinStreet’s specialty research and publishing division.

Since 1999, AmOne helped consumers identify the loan or credit solutions that best meet their needs, using proprietary loan matching technology. The company also provides free credit assistance from financial matching specialists. Since its inception, AmOne’s credit assistance efforts have generated more than $4 billion in loan approvals for consumers and business owners nationwide.

Twitter: @AmOneMoney

Media contact
Amy Eury
Senior Manager, Public Relations

Agreement to consider debt consolidation up to 85% LTV Wed, 19 Jan 2022 13:30:39 +0000 “We are committed to finding ways to help brokers support more clients, and increasing our maximum LTV for debt consolidation for borrowers who meet our higher credit rating will do just that. “ The lender increased the maximum LTV by 80% to give more choice to brokers whose clients meet its higher credit score requirements. […]]]>

“We are committed to finding ways to help brokers support more clients, and increasing our maximum LTV for debt consolidation for borrowers who meet our higher credit rating will do just that. “

The lender increased the maximum LTV by 80% to give more choice to brokers whose clients meet its higher credit score requirements.

Brokers will automatically be notified if their client is eligible for the increased 85% LTV limit when submitting a principle decision. Those who don’t qualify for the upper limit, but still meet Accord’s standard credit score, will be able to borrow up to 80% of the LTV for debt consolidation.

Accord will still only allow a maximum of ten debts to be consolidated for both secured and unsecured debt, and a debt consolidation limit of £50,000 still applies for unsecured debt.

Nicola Alvarez, Head of New Propositions at Accord, said: “We are committed to finding ways to help brokers support more clients, and increasing our maximum LTV for debt consolidation for borrowers who meet our higher credit score will do just that.

“Brokers have been talking about this for some time, so hopefully it will be good news that we have listened and are responding to an identified need with increased choice in the market.”

Struggling With Debt? Four Ways a Debt Consolidation Loan Can Help You Tue, 11 Jan 2022 15:48:53 +0000 Views of the publication: 236 Personal debt in the UK has risen by £ 63.7 billion since September 2020, with the average household owing nearly £ 63,000 according to Charity of money. While most people think they can balance their finances, many feel overwhelmed, Citizens Advice currently deals with nearly 2,000 debt issues every day. […]]]>

Views of the publication: 236

Personal debt in the UK has risen by £ 63.7 billion since September 2020, with the average household owing nearly £ 63,000 according to Charity of money. While most people think they can balance their finances, many feel overwhelmed, Citizens Advice currently deals with nearly 2,000 debt issues every day. So it’s no surprise that many are looking for a way to take control of their finances. This is where a debt consolidation loan could be the solution.

A debt consolidation loan involves taking out a larger loan to pay off all of your other debt, leaving you with one more manageable repayment each month. It is often used to simplify finances and get borrowers on the right track if they are struggling to get their debt under control. Here are four ways they can help.

1. Speed ​​up your way to free yourself from your debts

It can be easy to get into the habit of paying only the minimum monthly payment on credit cards, usually just five percent of the outstanding balance. This means that it will usually take decades to clear the balance, while still being charged a hefty amount of interest along the way. You’ll also always have access to whatever credit limit you have left, leaving you at risk of continuing to spend on the card and never actually reducing what you owe.

Likewise, a lot of people go so far with their overdraft that sometimes, even after getting paid, they don’t make it. In this situation, it can be difficult to justify asking your bank to lower your overdraft limit if that leaves you in trouble for the rest of the month. Also, if you accidentally go over your authorized overdraft limit, most banks charge a penalty and a higher interest rate, making it a costly situation.

Consolidating your debt into one loan means you’ll have a fixed end date in sight, so you’ll know exactly when you’re debt free. Provided you can follow the repayment schedule, knowing when your debts will be paid off can be a huge relief from financial stress.

The interest rate charged is usually much lower than that of a credit card, and spreading repayments over time can mean those payments are lower and more manageable. However, there are usually fees associated with these types of loans and different providers charge different rates, so it pays to shop around.

To get an idea of ​​how much you might need to borrow and for how long, the experts at have a very useful debt consolidation calculator.

2. Only process one refund

If you manage multiple lines of credit, one of the things you will need to manage is multiple amounts and repayment periods. While this is often facilitated by setting up a direct debit for the amount you need to pay, you still need to make sure you have enough funds in your bank account to cover each transaction.

This is where many run into problems: either they don’t have enough money to meet all the direct debits they’ve put in place, or they have so many repayments to make at different times that they it’s easy to forget what you owe where. The problem with missed or late payments is that they usually come with a fee, on top of the interest you would usually pay, which further increases debt. Add to that the damage this causes to your credit score, and it’s not hard to see why multiple repayments can quickly become a serious problem.

A debt consolidation loan benefits from only one repayment, for a fixed amount, at the same time each month until it is repaid. It is common for people to set up a direct debit so that this payment is taken automatically from their bank account shortly after payday. This means that they can be confident that they can repay the right amount, at the right time, month after month.

Another benefit of having only one refund is that it makes day-to-day life more manageable. Without having to keep track of so much, it should be a lot easier to see how much disposable income you have each month and a lot less stressful on you and your finances in general.

3. Potentially get lower interest rates

Most debt consolidation loans will fall under the umbrella of “homeowners” or “secured” loans, which means that your home will be used as collateral against the amount you borrow. Because of this security, there is less risk for the lender, who will therefore be more likely to offer you better interest rates.

This can be especially useful if your debt is spread across multiple lines of credit. In particular, payday loans, overdrafts and some credit cards carry some of the highest interest rates. If you have just enough money to pay off the bare minimum on this type of credit, and the interest rates are high, it could take you decades before you can pay them off completely.

By getting a debt consolidation loan with a lower interest rate, you will find that more of the repayment amount will go towards debt reduction, rather than interest.

Keep in mind that you usually take out a debt consolidation loan for a longer period of time than an unsecured loan. Although the interest rates may be lower, you may be able to pay off more interest overall. However, it is often worth it if it makes everyday life much easier.

4. Improve your credit score over time

If you’re struggling to manage your debt and you’re likely to be late, or worse, miss your payments altogether, it could really hurt your business. credit rating. Any missed or late payments will be recorded on your credit report for six years, which means that even if you’ve been paying off your debt for a long time, you could still be affected for years to come.

Also, if you repeatedly fail to keep up with your repayments, you may find that your lenders are taking extra steps to get their money back. This could include legal action, which could end up with you with a CCJ (County Court Judgment) or IVA (Individual Voluntary Arrangement).

These will also stay on your credit report for six years, but can make it nearly impossible to approve new lines of credit. While it’s best not to borrow more money while you’re paying off your debt, it could also affect much more ordinary, everyday things like renting out a property and getting a phone contract. mobile.

Paying off your creditors and closing your accounts with them using a debt consolidation loan is a great first step in improving your credit score. Then, provided you can keep track of your repayments on your debt consolidation loan, you will demonstrate to lenders that you are a responsible borrower who can manage credit well, which can go a long way in improving your credit score.

What Is Debt Consolidation And Is It A Good Idea? Fri, 07 Jan 2022 22:45:00 +0000 CNN Underscored examines financial products like credit cards and bank accounts based on their aggregate value. We may receive a commission if you apply and are approved for a product, but our reports are always independent and objective. According to Experian 2021 Credit Report, US consumers with credit card debt have an average balance of […]]]>

CNN Underscored examines financial products like credit cards and bank accounts based on their aggregate value. We may receive a commission if you apply and are approved for a product, but our reports are always independent and objective.

According to Experian 2021 Credit Report, US consumers with credit card debt have an average balance of $ 5,525, while the average credit card interest rate is currently well above 16%.

For those in arrears, high debt and a high Annual Percentage Rate (APR) can combine in the worst possible way, often creating a cycle of high interest debt payments that consumers cannot escape. And, even for those who can Keeping up with monthly payments, too much credit card debt can prevent them from reaching other financial goals, like saving for the future.

Either way, debt consolidation offers a way out of credit card debt that is much less serious than bankruptcy. You just have to be prepared to create a plan and stick to it until you are debt free. If you want to get out of debt for good, read on to find out how debt consolidation can help.

If you’ve been trying to plan your way out of debt or make more money but nothing seems to be working, debt consolidation might be the answer you’re looking for. With debt consolidation, you will essentially be swapping out the loans and credit card balances you have for a new loan product with better rates and terms, thus reducing your monthly payments or making it easier to allocate more. from your money to reducing principal on debt, or both.

Essentially, with a debt consolidation, you take out a new loan and use the proceeds from that new loan to pay off all of your old debts, and then make monthly payments only on the new loan. Broadly speaking, there are three financial products that consumers use for debt consolidation:

  • Debt Consolidation Loans, also called personal loans, allow you to refinance your debts into a new loan with a fixed interest rate and fixed repayment term.
  • Balance Transfer Credit Cards allows you to consolidate your debt on a new credit card that offers 0% APR for a limited time.
  • Home equity loans can help you consolidate your debt into a new loan product backed by the value of your home.

Whichever product you decide to use, remember that debt consolidation only really works if you stop taking on more debt. If you consolidate debt with a personal loan or credit card with balance transfer and continue to charge more for purchases on other lines of credit, debt consolidation is probably a waste of time.

Debt consolidation may or may not be a good idea. It all depends on how seriously you take the process and whether you have the discipline to carry it out.

As an example, let’s say you currently have $ 5,525 in credit card debt at an APR of 19%. In this scenario, you could pay $ 100 per month for this debt for 133 months – or more than 11 years – before it is paid off. During this period, you would have paid more than $ 7,701 in interest.

But what if you consolidate that $ 5,525 of debt into one personal loan? Although personal loans vary, most allow you to borrow money for two to seven years. Personal loans also come with fixed interest rates, fixed repayment terms, and fixed monthly payments.

In this example, you may qualify for a 60-month personal loan with an interest rate of 7%. In this case, you would pay off your balance with a monthly payment of $ 109 for five years (60 months). During that time, you would pay approximately $ 1,039 in interest payments. That’s a huge savings of over $ 6,000.

You can also consolidate your debt with a credit card. However, it’s important to note that while balance transfer credit cards offer an introductory 0% APR on transferred balances, the longest possible term currently offered is 21 months. After that, your interest rate will revert to the normal APR, which will always be high.

For this reason, a credit card balance transfer is only a good idea when you have an amount of debt that you can pay off during the card introduction period. If you need more time to get your debt under control than a balance transfer allows, you should consider a personal loan instead.

Finally, you can also consolidate your debt with a home equity loan that uses your home as collateral. In many cases, this can be a good idea, as home equity loans can come with low fixed rates as well as a fixed monthly payment and a fixed repayment term. Remember, you need good credit to get a home equity loan, and you can lose your home if you default on your payment.

But, in either of these cases, if after consolidating your debt, you overspend and accumulate an additional $ 5,000 in debt on the same original credit card that you used before that you can’t afford to pay off. that $ 100 in monthly payments on that debt, you end up paying an additional $ 4,985 in interest. Add that interest to the extra $ 5,000 of debt and your situation will be worse than you started with. This is why it is so important to stay disciplined and not keep spending more than you have when pursuing debt consolidation.

There are other debt consolidation options you can consider, some of which offer help from third party companies. For example, you might consider signing up for a Debt Management Plan (DMP), which takes place when a credit repair agency helps you negotiate interest rates and pay off your debts over a period of time. determined.

Just note that DMPs are not for everyone, and there is nothing credit repair agencies that offer DMPs can do that you cannot do on your own. Additionally, a number of credit repair agencies have gained a bad reputation, so be sure to do plenty of research before you embark on this route.

Another alternative is debt settlement, which is a process that helps you pay off your debts for less than you owe. However, it is essential to know that debt settlement companies ask you to stop paying your debts while they are working on your behalf. Not surprisingly, this can cause considerable damage to your credit score that can last for years.

Debt management becomes considerably easier when you have a reasonable interest rate and a monthly payment that matches your income. A big part of what debt consolidation does – it helps you transfer high-interest debt to a new financial product on better terms.

Another benefit of debt consolidation is that you can reduce the monthly payments you make. If you’re currently trying to cope with five or six credit card bills, consolidating debt with a personal loan company or peer-to-peer lender can help you make the jump to just one payment per month. .

With that in mind, several factors can determine if debt consolidation is right for you. These include:

  • Your solvency: You will need good credit or better to qualify for a personal loan at the best rates and conditions. If your credit is poor, you may not be eligible for a new loan with better rates than you currently have.
  • Your desire to repay debt: Debt management takes time and effort, and full debt repayment can take years. If you are not serious about debt consolidation, a debt consolidation loan may not leave you in the best position.
  • Your ability to avoid new debt: For your debt consolidation to be successful, you must stop accumulating more debt. While you are paying off your debt consolidation loan, you should only use cash or debit. At the very least, you should use credit sparingly.

So, should you consolidate your debts? If you pay credit cards with high APRs, debt consolidation may be just what you need. Remember, you will only pay off your debt if you make a plan, and most importantly, if you stick to it. If you take out a personal loan and continue to take on credit card debt, you could end up worse off in the long run.

Get all the latest personal finance offers, news and tips at CNN Underscored Money.

Best Debt Consolidation Options of 2022 Fri, 07 Jan 2022 08:00:00 +0000 Editorial independence We want to help you make more informed decisions. Certain links on this page – clearly marked – may direct you to a partner website and allow us to earn a referral commission. For more information, see How we make money. Juggling debt from multiple sources can make your finances feel like the […]]]>

We want to help you make more informed decisions. Certain links on this page – clearly marked – may direct you to a partner website and allow us to earn a referral commission. For more information, see How we make money.

Juggling debt from multiple sources can make your finances feel like the biggest puzzle in the world.

Debt consolidation can help organize those debts and monthly payments into something much more manageable. By streamlining your debts from different credit cards or lenders into one consolidated payment — especially if you get a lower interest rate in the process — you can jump-start your debt repayment success.

However, you need to be strategic about how you implement consolidation into your repayment plan. Choose a consolidation option that works with your credit score, matches your timeline and goals, and will help you establish healthy, long-lasting financial habits.

Choosing the Right Time to Consolidate

Before choosing a consolidation method, make sure you are at the right stage of your debt repayment journey to reap the most benefits. If you’re just starting out, your options may be limited.

“Often, if someone has maxed out or their credit has been affected, it can be difficult to qualify for many options,” says Katie Bossler, financial expert and quality assurance specialist at Greenpath Financial Wellness, a national non-profit organization that provides financial counseling services. “Or the conditions may not be favorable.”

This is all the more common as lending standards change in response to the economic downturn. Lenders and creditors reduce their own risk by being more selective about who they offer these options to, let alone who qualifies for the most favorable terms.

If your credit isn’t great today, start paying down your balances using standard best practices: pay more than the minimum amount due and start making additional payments when possible.

“As you pay down debt, your credit will likely increase accordingly, so these options may become available or be more favorable,” Bossler says. Once you are further along in the payment process and have improved your score through factors such as your positive payment history and low credit usage, your consolidation options may improve.

You should also consider the types of debt you want to consolidate and how you might approach your options differently. For example, credit card balances and high-interest personal loans can be consolidated, but you should generally only consolidate student loans with other student loans.

When you’re ready to consolidate, here are some options to consider:

Credit cards with balance transfer

Balance transfer cards offer zero percent interest introductory periods, usually between 12 and 18 months. After opening the card, you can transfer other high-interest debt balances for a fee and pay them off throughout the introductory period. As you do not accrue interest, each payment will go directly to the principal.

Jordanne Wells WiseMoneyWomen spent much of 2019 paying off $30,000 in credit card debt. She started by changing behaviors like adopting a strict budget, making regular extra payments, and automating her payment schedule.

But Wells, 34, says consolidating the balances of his most valuable cards onto a single balance transfer card was a key part of eliminating his debt.

“Instead of having five or six different cards that I was calling, it was just one big card. I could just hit it and do it.

But like everything else in 2020, balance transfers are getting trickier. Issuers not only pulled many of their best balance transfer offers, but they also tightened lending standards, so available cards are harder to get without great credit.

Pro tip

Whichever consolidation method you choose, be sure to save money by transferring your high-interest debt to an option with a lower APR. Over the course of paying off your debt, even a few percentage points in interest could add up to huge savings.

If you can qualify, always make sure you have a repayment plan in place before transferring your balance to a new credit card. If you are unable to repay a significant portion of your balance during the introductory period, you will only prolong your debt and may even pay more in the long run. In fact, some issuers retroactively charge interest back to the day you transferred your balance if you don’t pay the balance in full by the end of your introductory period.

Personal loans

Like a balance transfer, consolidation through a personal loan can help simplify your debt repayment by combining your debts into one standard monthly payment.

The best part? You can significantly reduce your interest. While credit card interest rates average around 16%, average personal loan rates are below 10%, according to the Federal Reserve (although terms vary, with the best rates going to those with the best credit). And since personal loan rates are often fixed, you don’t have to worry about your rate fluctuating over time.

Prepare to be proactive with paying off your debt if you choose a personal loan. Depending on the length of your repayment period, the amount you owe each month could be more than the minimum payment you’re used to paying on your credit cards, even taking into account the lower interest rate.

Before taking out a new loan, always make sure the repayment schedule matches what you are able to pay. Also, do your research to find a lender willing to give an interest rate lower than your current APR; you can get an interest rate as low as 6% with some of today’s best personal loan deals.

home equity

If you’re a homeowner, you may be able to use the equity in your home – what the home is worth minus what you owe – as a consolidation tool, through a home equity loan or home equity line. home equity loan (HELOC).

With a home equity loan, you can take out a lump sum, use it to pay off your high-interest debt, and then pay off the loan in standard monthly installments. A home equity line of credit acts more like a credit card; you can borrow against the line of credit as needed to pay off your other debts and then pay off the HELOC over time.

Like other consolidation methods, the best reason to consolidate through home equity is to score a lower interest rate (loans can be fixed, while HELOCs are often variable). Secured loans like these may also be more viable options for homeowners without great credit, as other consolidation methods generally require a good credit history.

But a home equity loan or HELOC can be risky. Because these are secured loans, using your home as collateral could risk foreclosure if you don’t pay. And since home equity loans are based on the value of your home, you could also risk owing more if your home’s value drops.

Debt management plan

If other consolidation options don’t work or you’re really overwhelmed with your debt balance, consider working with a nonprofit credit counselor on a debt management plan. These plans are designed to consolidate and reduce your monthly payments, whether your debt is from credit cards, personal loans, or even collection debt.

Always look for credible, non-profit credit counseling agencies such as those approved by the National Credit Counseling Foundation.

Credit counselors can help you negotiate the terms of your debt, lowering your interest rate and reducing your minimum monthly payments, often based on your discretionary income and the payments you are able to make each month . This could be a particularly useful option if you want to start paying off your debts, but are facing a period of financial difficulty.

“When you’re on a debt management program, you have that monthly payment and you know the debt will be paid off within that time frame,” says Bossler. Removing the pressure of arranging payments to different lenders on different dates throughout the month lets you focus on the other details that will help you pay off your debt, like streamlining your budget and cutting expenses.


Debt consolidation can be a great tool for paying off your debts, but you have to be smart about how you implement it. Take the time to work out the different types of debt you have and how different consolidation options can best align with what you can afford, your schedule, and your other financial goals.

“When you go through all of this, there’s not necessarily a right or wrong answer,” says Bossler. “It’s just a matter of evaluating the options available to you. Really understand the terms, the interest rates, what you’re getting into before you jump in.

Bronco Partners Examines Debt Consolidation vs. Debt Settlement Fri, 31 Dec 2021 08:00:00 +0000 Editorial credit: Artur Szczybylo Bronco Partners wants you to know that unsecured debt is a burden for everyone. But it doesn’t have to be: Write a review about Bronco Partners‘ debt consolidation loan and you will find that your debt can be manageable and affordable. A Bronco Partners Debt Consolidation Loan lets you prioritize what’s […]]]>

Editorial credit: Artur Szczybylo

Bronco Partners wants you to know that unsecured debt is a burden for everyone. But it doesn’t have to be: Write a review about Bronco Partnersdebt consolidation loan and you will find that your debt can be manageable and affordable.

A Bronco Partners Debt Consolidation Loan lets you prioritize what’s important to you: your retirement, a fabulous vacation, or even that new oven you’ve been coveting. Life is possible with Bronco Partners.

Bronco Partners Debt
Editorial credit: fizkes

“Debt settlement and consolidation have the same goal of helping clients get rid of credit card loans,” according to Bronco Partners. However, the two concepts are inherently different in how they help people solve their debt problems. While debt settlement is good for reducing the overall loan amount owed, debt consolidation effectively decreases the overall amount you owe the creditor.

The option that meets your needs depends on your current financial situation and your plans for dealing with your debt. Although this article covers both, it is essential that you consult a specialist. In the meantime, it is necessary that you do your research and familiarize yourself with both concepts before choosing one of the two. That said, let’s go.

What is Debt Settlement?

Debt settlement is the process of negotiating with lenders to resolve a loan and reduce the outstanding amount. Although this strategy is typically used to settle a large loan through a single lender, it can also be used to negotiate with multiple lenders.

What is debt consolidation?

Debt consolidation consists, as its name suggests, of consolidating all debts due and take out a new loan to repay the lenders, ideally at a lower interest rate and with quarterly repayment. It is commonly used by people trying to settle many unsecured obligations and other credit card bills.

The pros and cons of debt consolidation and debt settlement differ, especially when needed to get rid of liabilities. If implemented correctly, both can help you get out of debt faster and save more.

How do they work?

When considering the ideal strategy for managing your bills, you may be weighing debt settlement versus debt consolidation. However, it depends on your financial situation.

Debt settlement programs

Debt settlement is when you, or any negotiating agent on your behalf, try to negotiate with your lender to reduce the amount to less than the total amount owed. If the lender approves your offer, pay the settlement and the situation seems to be resolved.

Bronco Partners Debt Consolidation Programs

When you’re burdened with a lot of debt that you’re reminded to pay off every month, debt consolidation can be an effective part of your relief plan. However, it only helps when you can control your spending habits. When you miss out on one of your credit card bills, it can be difficult to recover. If you are paying less in repayments for your debts, consider debt consolidation.

Benefits of Debt Settlement

When a lender is willing to take a portion of the committed amount in exchange for eliminating the balance of the obligation, it looks like an effective option. Debt settlement is seen as potentially negative for borrowers in any debt settlement industry, not least because it can be a paradise for scammers. However, borrowers seeking debt settlement are aware that their alternatives are limited, and the benefits for such individuals are wise to consider.

Debts can be paid off faster

Some avenues of financial help, such as credit counseling programs and debt management plans, usually don’t have too many benefits. Debt settlement can help those who are drowning in debt pay off a lesser amount on current debt. In many cases, this debt settlement procedure is faster than other options.

Bankruptcy can be avoided

Borrowers who opt for debt settlement are often unable to choose among the options and continue to make repayments over the longer term. How it works is that lenders forgive part of the loan, provided the borrower agrees to repay a particular amount. The idea is that they get something instead of nothing.

Prevent being sued for a debt

Depending on your terms, one might have a unique idea of ​​what defines a much worse situation. With debt settlement, you can avoid being sued for non-payment.

Disadvantages of Debt Settlement

The benefits of debt settlement in terms of dollars saved can make it an attractive choice for financial aid. However, borrowers should consider the downsides to ensure they make the right decision.

Debt settlement fees

Most debt settlement companies charge high fees, often ranging from $600 to $3,200 or more. These costs are however not contributed to your obligation; on the contrary, they go directly into corporate wallets.

The effect of debt settlement on credit rating

Although not as damaging as bankruptcy, debt settlement can negatively affect your credit rating when dealing personally with your lenders. The lender may disclose the agreement to major credit reporting agencies. This would impact credit availability, job opportunities, terms of your upcoming loan, and other factors.

Advantages of debt consolidation

  • You can make it easier to practice paying off your debts. Each month, you pay one repayment to the creditor on one date rather than several repayments to various creditors with many different dates.
  • Fixing your credit will boost your credit rating, as long as you don’t use them as often as you used to.
  • In most cases, debt consolidation debts can be obtained for a rate ranging from 9% to 14%.

Disadvantages of debt consolidation

  • The amount of silt is not evacuated or decreases significantly. However, you owe some of the money and the debt problem will not go away completely unless you reduce your spending.
  • Duration can also be a factor. You should expect to take 3 to 4 years on a debt consolidation process until the debt is eliminated.
  • A good credit score is necessary for effective debt reduction. When the credit rating is low, you may be denied a refinance loan.

The conclusion of Bronco Partners

Debt consolidation and debt settlement are difficult unlike bankruptcy because many federal and state bankruptcy rules are more comprehensive than the previous two types of financial assistance. Still, it’s safe to say that while insolvency is a last option, bankruptcy is still a viable alternative to explore if you’re ready to start over completely. You can try debt consolidation or debt settlement on your own or contact a company; However, be sure to do your homework when finding your financial expert.

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The Basics of Debt Consolidation: What You Need to Know Mon, 22 Nov 2021 08:00:00 +0000 Credit card debt is common in the United States, with the average American having a credit card balance of over $5,000 in 2020. With high interest payments and large principal balances, it can be difficult to pay off credit card debt, resulting in a snowball effect that makes deleveraging difficult, if not impossible. A common […]]]>

Credit card debt is common in the United States, with the average American having a credit card balance of over $5,000 in 2020. With high interest payments and large principal balances, it can be difficult to pay off credit card debt, resulting in a snowball effect that makes deleveraging difficult, if not impossible.

A common way around this problem is called debt consolidation. This practice can be helpful, simplifying the process of paying off debt. It can also help you get a lower interest rate that allows you to pay more for the principal of the debt, paying off the total more quickly. But, there are some downsides to debt consolidation. Before taking this step, it is essential to know as much as possible about how it works and its impact on your finances.

How does debt consolidation work?

There are many debt consolidation programs and products available. In general, debt consolidation involves taking out a new loan or credit card and consolidating all of your existing debt into one monthly payment that you pay through that loan or card. You then make a payment each month on the new line of credit.

What are the types of debt consolidation?

There are three common types of debt consolidation.

  • Credit card balance transfers arise when you open a new credit card and then transfer debt from various existing accounts to that card.
  • Debt consolidation loans offered by a bank or credit union can be used to pay off a debt. You then have to repay the loan every month.
  • Credit counseling services work with you to tailor a solution to your specific debt problems. These services typically work with your creditors to negotiate lower payments, then make those payments with a fee that you pay them each month.

What are the advantages of debt consolidation?

Debt consolidation can have a number of benefits, the simplest of which is that the number of payments you need to make each month is reduced to one, simplifying the payment process and making it easier to track your debt. You’re also much less likely to forget an account and miss a payment since you’ll only have one to remember.

Additionally, debt consolidation can lead to lower interest rates, which means more of your payment is used to pay down the principal of the debt. This will help you pay off the debt faster.

Another benefit is the potential improvement in your credit score. Since the rate of credit utilization is a determining factor in determining your credit score, consolidating debt into a personal loan, for example, will have a positive impact on your credit score. Also, the faster you pay off the debt, the better your credit rating will be.

What are the risks of debt consolidation?

As with any financial decision, make sure you have all the information and read all the fine print before agreeing to a debt consolidation strategy. Some debt consolidation counselors are actually scams with high fees and interest rates that end up hurting your financial situation rather than helping it. If you’re considering consolidation, make sure you’re getting the best product by shopping around and comparing interest rates, loan terms, and fees.

For example, even if your interest rate goes down, if you pay off a debt over a longer period, the total interest you pay could be higher than in your current situation. Be sure to work with a reputable institution and do your research to ensure that the actions you are taking are truly in your best interests.

Finally, no financial maneuver will help you if you regularly spend more than you earn. When considering debt consolidation, you must first look at your expenses, create a budget, and cut back where you can. Debt consolidation will not solve existing financial problems that result from irresponsible spending. Debt consolidation in the right situation and on the right terms can be a useful tool for paying off debt. By having everything in one place, you can simplify your payments and pay off your debts faster. But, you should use these tools with caution and always do proper research before making any important financial decision.

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