Consolidate your personal debt

You’ve heard about businesses consolidating or restructuring their debt in order to avoid having to declare bankruptcy, and you are probably wondering how you could benefit from the same type of debt management strategy. If businesses that owe thousands of dollars are eligible for debt consolidation or negotiation, couldn’t the same apply to you? Depending on your level of debt and the type of debt you carry, you may qualify for personal debt consolidation, a great debt reduction solution for people who are bogged down in high interest debt such as credit card debt.

Types of debt

One of the most important factors in personal debt consolidation is the type of debt you hold. Depending on the debt consolidation company you work with, only certain types of debt may qualify for consolidation. For example, some common kinds of debt that are generally not included in any debt consolidation program include child support, mortgages, legal fines and car loans. On the other hand, debts that qualify for most debt consolidation programs include credit card debt, unpaid utility and medical bills, store charge debt, and in some cases, membership debt. Before you sign up for a personal debt consolidation program, speak with a debt consolidator about what debts qualify and which do not.

To learn more about making the choice of personal debt consolidation, click here.

What is personal debt consolidation?

Unlike business debt consolidation which focuses on reducing debt that a business has accumulated and credit card debt consolidation which concentrates only on reducing or eliminating credit card debt, personal debt consolidation merges all personal debt that a person may have amassed, including credit card debt. In fact, personal debt consolidation primarily works with credit card debt because it is unsecured debt that is subject to high interest rates.

Personal debt consolidation works best with unsecured debt—i.e. debt that has no collateral attached to it—because creditors have little recourse when it comes to collecting on unsecured debt. Your home, for example, cannot be seized simply because you have $30,000 worth of credit card debt.

Is personal debt consolidation right for you?

Do you have a significant amount of personal debt spread out over several different creditors? Think about the amount of interest you pay each year on this debt, getting along by making only the minimum payment on each of your credit cards. Sure, making the minimum payments will keep the creditors from calling you, but it won’t make much of a dent in the overall debt you owe. For this reason, many people have turned to personal debt consolidation.

Personal debt consolidation loans are intended to assist you in overcoming your debt load as quickly as possible, and with the least amount of stress. Often high credit card bills mean even the minimum payment is too high to pay, and even for those who can afford it, paying thousands of dollars in interest alone can be very frustrating. With a personal debt consolidation loan, you can pay off your creditors immediately, without paying them one more cent in interest. Then you make one monthly payment toward paying off your debt consolidation loan. With a lower interest rate and an amortization plan that makes each monthly payment affordable, anyone with a lot of personal debt would be foolish not to consult a debt management expert about personal debt consolidation.

For more detailed information on personal debt consolidation, contact us here.

How Do We Compare?
Read about how Debt Consolidation Counselors is different than most credit counseling and debt settlement agencies out there.

Do You Qualify?
Find out if you qualify for the DCC program.