Best debt consolidating companies
That’s why dishonest companies that promote too-good-to-be-true debt relief programs continue to rank as the top consumer complaint received by the Federal Trade Commission.
Something has to change, and you’re considering debt consolidation because of the allure of one easy payment and the promise of lower interest rates.
The truth is debt consolidation loans and debt settlement companies don’t help you slay mammoth amounts of debt.
Banks and credit unions offer a variety of traditional loans and other products, but they typically don’t cater to debt consolidation loans for people with bad credit.
Banks and credit unions often use a risk-based pricing model, meaning the bigger the risk they think you are in terms of repaying the loan, the higher the interest rate they’ll charge you.
But let’s be honest: Your interest rate isn’t the main problem. This specifically applies to consolidating debt through credit card balance transfers.
If that’s not bad enough, you’ll end up shelling out $46,080 to pay off the new loan versus $40,392 for the original loans—even with the lower interest rate of 9%.
Minimum monthly payments aren’t doing the trick to help nix your debt.Before you go down the wrong road, take some time to realize there are choices for you, regardless of your credit history and financial situation.In addition, the more you understand about the differences between the many debt relief options, the more likely you are to make a smart decision and get on the road to financial freedom.Two words for you: , although often the terms are used interchangeably.We’ve already covered consolidation: It’s a type of loan that rolls several unsecured debts into one single bill. Debt settlement means you hire a company to negotiate a lump-sum payment with your creditors for less than what you owe.Here are the top things you need to know before you consolidate your debt: But here’s the deal: debt consolidation promises one thing but delivers another.