Are you one of the many Americans struggling to keep up with your debt? As of December 2017, the average U.S. household owed nearly $16,000 in credit card debt alone. While income growth has increased by around 20 percent over the last 10 years, medical costs have increased by 34 percent, and food costs have increased by 22 percent. Is it any wonder that so many people are in over their heads? Fortunately, you don’t have to resign yourself to struggling under massive debt forever. Read on to find out how debt consolidation Texas can help.
Struggling with Debt?
Nobody intentionally sets out to end up with too much debt. Sometimes, the ease with which things can be charged onto credit cards gets the better of us; other times, unexpected occurrences like job losses and medical issues can sabotage even our best efforts. Regardless of how you ended up with debt that’s more than you can easily manage, it’s important to know that you have options—and they aren’t limited to bankruptcy. In fact, with the right debt consolidation assistance, you may be able to reduce your debt to a more manageable amount or to eliminate it entirely.
What is Debt Consolidation?
Like many people who have heard of debt consolidation, you are probably unclear about what it entails. Put simply, debt consolidation involves taking out a single new loan to pay off multiple debts. In doing so, it is often possible to save significantly on interest charges, to face fewer fees and penalties and to more easily get a handle on your overall financial situation. Instead of dealing with multiple debts with different interest rates, terms, balances and payment dates, everything is consolidated into one single, simple monthly payment.
Is Debt Consolidation Right For You?
When debt becomes too overwhelming, people often immediately assume that bankruptcy is on the horizon. However, bankruptcy is a drastic step that negatively impacts your credit for many years, and it’s often best to attempt debt consolidation first. You may be an ideal candidate if the following apply to you:
- you have good enough credit to qualify for low-interest credit cards
- your total debt doesn’t exceed more than 50 percent of your income
- you are currently able to consistently pay most of your debt with your regular cash flow
- you will take steps to prevent new debt from accumulating in the future
As useful as it can be, debt consolidation isn’t right for everyone. Debt consolidation services are designed for clients who have the following types of debt: credit card debt; past-due medical bills; personal unsecured loans and collection accounts. Our firm connects clients with law firms around the country that offer debt negotiation and debt settlement programs. However, debt consolidation is not intended for mortgages, IRS tax debts, payday loans, car loans or student loans.
Debt consolidation probably won’t help if the following apply to you:
- your total debt is small enough to be paid off within six months to one year
- you fail to take steps to correct excessive spending habits
- your total debt exceeds more than 50 percent of your annual income
Benefits of Debt Consolidation
For many, debt consolidation is an effective way for individuals to regain control of their financial situations without resorting to bankruptcy or other extreme measures. When people allow debt consolidation Texas to assist them, some of the benefits include:
One Monthly Payment
Instead of juggling and chipping away at several debts, make a single monthly payment to reduce your total overall debt.
Lower Interest Charges
In most cases, debt consolidation allows you to enjoy a lower interest rate on your remaining balance, which can save you significant money and help you to pay off your debt faster.
Reduced Fees and Penalties
With help from our debt consolidation Texas firm, you may be able to avoid late payment fees and other penalties as you pay down your debt.
No More Harassment
With a single monthly payment to manage, you won’t live in fear of harassing phone calls from creditors.
Eliminate Your Debt Faster
When debt is consolidated, interest fees, late fees and penalties are usually reduced. Your monthly payment therefore pays off more of your principal balance, which allows you to pay off your debt faster.
Improve Your Credit
While closing accounts can have a negative impact on credit, consistently paying bills late is much more disastrous. Once your debt is consolidated, you can more easily pay your monthly bill consistently and on time, which could immediately start improving your credit.
Regain Your Financial Footing with Debt Consolidation Texas
Until you reach out for help, it’s easy to feel as if your debt is too overwhelming to be dealt with. However, you will quickly see that excessive debt can happen anyone and that bankruptcy doesn’t have to be a foregone conclusion. In many cases, debt consolidation Texas with Christian Debt Counselors is all that is needed to regain some financial footing, and it is well worth it to investigate the available options. Our debt counseling company works with law firms around the country and is here to help, so give us a call today.