It seems that many people in America are experiencing a financial crisis. When this is the case, debt consolidation companies want to be available to offer their services to the many individuals who are struggling with debt. Deciding which debt consolidation firm is right for you, isn’t one that you should take lightly. Taking the time to choose a counselor for debt consolidation loans Tennessee doesn’t have to be difficult if you follow the advice in this article.
Research Credit Counselors Tennessee
You don’t have to settle on the first credit counselor you contact. During your first phone call with a counselor, take the time to interview him or her. For example, ask them what their qualifications are and about their experience as a counselor. You should be able to spend as much time as you need with this counselor to determine if they would be a good fit for you. You can also take this time to ask about the fee for the service.
Find Out What the Company Is Offering You
Companies that advertise that they offer debt consolidation loans Tennessee may not actually do that. These companies may focus on debt management, debt settlement or credit counseling, however, this is not the same as debt consolidation. Debt consolidation means that you will receive a loan that pays all of your debts in full. It will be your counselor’s job to negotiate an interest rate for this loan that is lower than the interest rates that you are paying on all of your debts separately. Then, you will make one monthly payment to the lender that is much easier for you to manage.
The Loan’s Terms
Making one payment a month for a your debts will be a huge relief, but before you can set this up, you need to consider the loan’s terms first. Your debt consolidation loan will be advantageous to you if the loan’s terms are shorter than the ones on your current debts. In the event that the terms are longer, you could end up paying more interest on the debt than you would if you left things the way that they are now.
On the other hand, if the terms are longer but your payments are much lower, you may decide that this is an improvement over your current situation. You would be paying this debt for a longer time, but the lower payments would give you a chance to breathe. It will be up to you.
Fees for Debt Consolidation Tennessee
Every time you take out a new loan, you will have to pay fees. These are known as “origination fees,” and it is a good idea for you to know the amount that these fees will add to the loan before you sign on the dotted line. Calculate the fees that you will be charged for the loan so that you can make sure that it isn’t more than you are willing to pay. The only other fee that you should be required to pay on this loan would be a late fee if you ever make a late payment, which you should avoid.
Setting up a Meeting
If you are at the point where you believe that credit counseling for a debt consolidation loan would be helpful, it would be an excellent idea to set up a meeting with a counselor even if you do not obtain debt consolidation loans Tennessee. You would have the opportunity to learn a lot about your own finances, and this may be all that you need at this time.
On the other hand, you may have decided that a debt consolidation loan is something that will be very beneficial for you, and Christian Debt Counselors can help you with this. We can assist you if you have credit card debt, accounts in collections, overdue medical bills, personal loans and other unsecured debts. We may even be able to help if you have IRS tax debt.