Benefits to consolidating debt

01-Aug-2017 08:04

In the meantime, you likely will be racking up costly late fees and interest charges on all your debts.

In the case of debt settlement pros and cons, this is just one of the many cons associated that make it a dicey choice.

Also, there normally is a transfer fee involved (2–3% of the balance being transferred) and an expiration date (usually 12–18 months) on the 0% interest rate.

Numerous sources offer personal loan options — most often a bank, credit union, or online lender.

Get Financial Help Now Debt settlement is negotiating with creditors to settle a debt for less than what is owed.

This method is most often used to settle a substantial debt with a single creditor, but can be used to deal with multiple creditors.

Zero percent balance transfers are extremely attractive offers by credit card companies, but usually are limited to consumers with excellent credit scores.

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The two terms are often used interchangeably, which leads to a great deal of confusion on the part of consumers, who may not realize that these are vastly different debt relief services.

For example, if you owed ,000, you might offer the creditor a lump-sum payment of ,000.

If the creditor accepts the offer, you make the payment and the matter , because if you owe more than one creditor, as is often the case, you must go through the process with each one.

The pros for debt consolidation are obvious: You are simplifying the process of paying your bills.

You make one payment to one lender with one deadline every month in place of multiple payments to multiple creditors with multiple deadlines.

The two terms are often used interchangeably, which leads to a great deal of confusion on the part of consumers, who may not realize that these are vastly different debt relief services.

For example, if you owed ,000, you might offer the creditor a lump-sum payment of ,000.

If the creditor accepts the offer, you make the payment and the matter , because if you owe more than one creditor, as is often the case, you must go through the process with each one.

The pros for debt consolidation are obvious: You are simplifying the process of paying your bills.

You make one payment to one lender with one deadline every month in place of multiple payments to multiple creditors with multiple deadlines.

Credit counselors also can provide solutions that you can take with you after completing the program.