Debt consolidating loan companies
Furthermore, if you have bad credit, debt consolidation loans may come with high interest rates.
In addition to putting your home at risk, many consumers end up prolonging their debt.
Most often, the required collateral is a second mortgage or a home equity line of credit.
This is incredibly risky because if you cannot meet your payments, your home is on the line.
While having one low rate and one payment is an attractive option, many people end up in similar or worse financial situations when attempting credit card debt consolidation.
According to Cambridge Credit Corp., a nonprofit credit-counseling agency, 70 percent of Americans who take out consolidation loans end up with the same or more debt after two years.
Freedom Debt Relief is also one of the industry leaders, and it offers some of the highest quality customer service.
In addition, the company has an easy-to-use dashboard that tracks your consolidation program and the progress of its negotiations with your creditors.
During this program, you receive financial counseling and meet with a financial advisor.
Many of these options work hand in hand with or as part of a larger debt reduction program, but in general, these are your choices: Debt Settlement: Settlement is the process of negotiating with your creditors in hopes of reducing the total amount of debt you owe them.
While you can undertake this process on your own, many people choose to hire a professional debt settlement company or lawyer to negotiate on their behalf.
When you start pursuing debt management options, you may get mixed messages from people in the debt relief industry.
Because there is no general industry consensus as to what the best ways to manage debt are, we have narrowed down your options.
On $10,000 of debt you can expect to pay anywhere between $1,400 to $2,500 in fees.