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Will Debt Consolidation End Your Debt Trouble? |
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There’s no doubt about it, dealing with debt can be a struggle. When your debt load is overwhelming large, the only thing you can think about is a solution.
If you’re like most people you want to ease the debt burden, but don’t want to ruin your credit with bankruptcy. Debt consolidation may have crossed your mind as a possible solution.
Is it the right one for you?
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What Is Debt Consolidation? |
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Debt consolidation is combining all your separate debts under a single debt umbrella. People commonly do this with a debt consolidation loan,
a loan that has the specific purpose of being used to pay off your debts. There are ways to consolidate your debt that don’t involve getting a specialized loan.
If you have a credit card with a high enough credit limit, you can use a balance transfer to put all your debts onto that single credit card. A major appeal of consolidation loans is convenience. Instead of paying 20 different creditors who are charging different rates at different times
of the month, you take out one big loan and pay off all those accounts. Then you make a single payment on that loan once a month.
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Why Not Debt Consolidation? |
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- Debt consolidation is not debt reduction. You are not paying any less than what you owe.
- Risk of losing your home. You could put your house at risk if you consolidate your debt with a loan that’s secured by your home.
If there is ever a time that you can’t make your payments, you could face foreclosure.
- Credit profile will be negatively impacted
- Ease doesn't automatically translate to savings.
- For many consolidation-loan candidates, their current credit woes mean they won't get the lowest-available interest rate.
Plus, when there is nothing to secure the loan (such as your home), expect the lender to bump up the rate.
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What are differences with debt settlement? |
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- Debt settlement is better because it costs less and is quicker than a debt consolidation.
- Reduces your total debt drastically. You are paying a significant reduced amount that you owe typically 40% to 60% less. Unlike debt consolidation, there is not reduction as to the amount you owe.
- Consumer Debt Group provides you the legal backing of as we are affliated with law firm.
- Provides flexible payment arrangements (changes can be made if needed)
- Alternative to Bankruptcy
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Take action now or call us at 1.877-939-3328 today and find out how we can help you.
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