Simplify Your Finances with Debt Consolidation
Informal Debt Settlement
Knowledge is Power
Benefits of Debt Consolidation
Simplify your finances: You’ll have one monthly payment to manage instead of multiple payments to different creditors.
Lower your interest rates: Debt consolidation can help you secure a lower interest rate, which means you’ll pay less in interest over time.
Pay off your debts faster: With a lower interest rate, more of your payments will go toward the principal balance, allowing you to pay off your debts faster.
Improve your credit score: If you’re able to make timely payments on your consolidated debt, you can improve your credit score over time.
Types of Debt Consolidation
Debt consolidation loans: These are personal loans that you can use to pay off your existing debts. You’ll then make one monthly payment to the lender until the loan is paid off.
Balance transfer credit cards: These are credit cards that offer a low or zero interest rate for a limited time. You can transfer your existing credit card balances to the new card and pay off the debt before the introductory period ends.
Debt management plans
These are programs offered by nonprofit credit counseling agencies. A counselor will work with you to create a repayment plan that fits your budget, and negotiate with your creditors to lower your interest rates and fees.