What is Debt Consolidation Counseling?
Debt consolidation counseling usually refers to a type of debt program administered by non-profit credit counseling agencies. These agencies advise consumers about their budgets and set up debt management plans with their creditors where interest rates are lowered, helping them to become debt free faster. On average these programs last between four and five years, and consumer pay back their debts with 9% interest.
To speak with a consultant about whether this is the option for you, submit a form now!
Personal Loans
One of the main debt consolidation options are personal loans. Depending on your current rates, using a personal loan to manage your debt may save you quite a bit on interest, but usually these loans still charge a very high rate because they are unsecured, or no collateral is attached in the event of non-payment.
Home Equity Loans
Home equity loans are another great option for debt consolidation. Not only can they lower your interest rates, a home equity loan might even be tax deductible.
There are two different kinds of home equity: a home equity line of credit (HELOC) and a home equity loan. With debt consolidation, the home equity loan is the more popular option. This option allows you to take out a second mortgage using your home equity. You're loaned a sum of money at a fixed interest rate and make monthly payments on the loan.
Debt Consolidation Counseling Programs
Debt consolidation counseling programs are something else to look into. Debt settlement and credit counseling are great options depending on your situation. In a debt settlement program, such as the one offered thru DebtShield.com, clients are able to settle their debts for less than they owe and become debt free much faster. To learn more about both of these debt consolidation counseling options, submit a form for a completely free, 10 minute consultation!
Your debts aren't something that have to weigh you down and loom over you throughout your days like a dark cloud. Change the way you live your life, the way that you spend your money and enroll in a debt consolidation program in order to help get your financial house back in order. Getting out of debt isn't as easy as going into debt, but the freedom that you experience and the knowledge that you gain will more than make up for it. Start now!