Personal Loan - North Carolina
If you are in need of relief from debts due to credit cards and other types of unsecured debts, perhaps you have considered resorting to a personal loan. There is good news - today, you have a variety of debt relief options available, including debt consolidation through credit counseling, debt settlement, personal loans, or bankruptcy. However, finding the right debt relief method to help resolve your debts is certainly not a one-size-fits-all situation.
In fact, each individual's situation is unique, which is why it is wise to explore all your debt relief options by requesting a free debt relief evaluation and savings estimate - at no obligation to you.
Risks of Personal Loans
In these tough economic times, many consumers in North Carolina and nationwide get a debt consolidation personal loan to help pay off their credit card debts and other types of unsecured debts (such as medical bills, retail store charges, or even utilities). When you take out a debt consolidation loan, you are generally combining your high-interest debts into one, lower interest loan.
While this method might work for consumers who have the willpower to stop relying on their credit cards so they don't accumulate new charges, a personal loan may not be a good option for those who typically can't resist using their credit cards and who may need a little help in the budgeting and management department.
Keep in mind also that while a debt consolidation loan is a form of debt relief, it involves taking unsecured debt and paying it off with funds that come by way of a "secured" loan. What this means is, it is generally a loan where you would have typically put up your home or other asset to get approved. If you struggle to make your loan payment, you would have essentially put your home at risk.
Also, in many cases, consumers who get a debt consolidation loan generally end up using their credit cards again. As a result, many of them will have new, high-interest credit card debts to deal with on top of their loan. Under this scenario, a debt consolidation loan has generally made their debt situation go from bad to worse.
That is why it is smart to request a free debt relief analysis and savings estimate to find out your other debt relief options, such as a debt consolidation program, which can provide you with a more structured and more affordable payment plan made to a credit counseling agency.
Today, debt consolidation has become a popular alternative to bankruptcy, which has a more damaging and longer lasting impact to personal credit.
How Much Can You Save With Debt Consolidation?
As mentioned earlier, debt consolidation not only helps you manage your debts but it may also lead to savings. The amount of savings that you could potentially have every month, however, depends on the amount of your debts, current interest rates that you are paying, and other fees and penalties.
With debt consolidation (unlike a personal loan), you are typically combining or consolidating credit card and unsecured debts into one, more structured, and more manageable monthly payment made to a credit counseling agency. Some people also refer to debt consolidation as a debt management plan, or DMP.
When you enroll in a debt consolidation program, credit counselors will review your finances, taking into account your debts, income, and other obligations. Once they have a clear picture of your finances, they will typically develop a debt relief strategy that can help reduce your debts - by submitting proposals (on your behalf) to creditors asking for reduced interest rates, or the waiving or elimination of any late fees or penalties. Creditors that agree to the proposals are placed into the debt management plan.
The goal of debt consolidation is, with a single, more structured, and more affordable payment plan, you can direct more of your payment towards paying off the principal of your loans rather than just the interest - and eventually, reduce your debts sooner than if you continued making the monthly payments on your credit card debts at higher interest rates.
Compare Your Debt Relief Options
If you are interested in finding out how much you can save every month through debt consolidation - first compare your various debt relief options - including debt consolidation through credit counseling, consolidation with a personal loan or debt settlement. Request a free debt relief evaluation and savings estimate - at no cost to you.