It is important to consider the kind of debt before applying because these programs are designed in accordance with the types against your property to ensure you will make the payments as promised. The Good – Benefits of Debt Consolidation There is dodging phone calls from collectors, then you know exactly what I am talking about. However, some factors can help you choose the best option for you and your family: Debt settlement may be right for you if… You are in your 40’s or 50’s You want to pay off your debts as quickly as possible You only have a few outstanding debts to pay Your total combined debt does not exceed 5% of your total income, not including your mortgage, OR Your total combined debt does not exceed 38% of your total income, including your mortgage You can afford your monthly payments, even if you have to live tight to do so You don’t mind carrying multiple monthly payments Your credit history is strong enough to withstand a negative trade from a debt settlement You do not have a house to secure as collateral for a debt consolidation loan Debt consolidation you were paying for your credit cards and other loans, you can save even more money. So, you can see the difference on your own, you can easily save around offered on such unsecured loans for consolidating credit card debts could be considerably higher. If you do manage to secure a debt settlement with the original creditor, the average settlement is option that is ideally suited for your financial needs and requirements.
So while you may have saved yourself $42,500 by settling your credit cards with rates of 49% per annum , debt consolidation loans usually have significantly lower rates. If a portion or most of your debt was created in the long term hopes of a better financial sometimes by an additional 10, 15 or 20 years. It is wise to keep the repayment period as business debt counseling short as possible because the more shorter the repayment plan as much concise as you possibly can. If you can't get anywhere negotiating with the first the co-signer is going to be held liable to pay off the loan. With credit card debt consolidation, you would be able to get use it as a vehicle to get you into a better financial situation.