Debt consolidation in Pennsylvania is not the answer for everyone. However, it might be a solution for you if you have the following qualifying debts:
- Credit Cards
- Personal Loans
- Collections Accounts
- Medical Bills
- Other Unsecured Debts
It’s not always easy to determine whether or not debt consolidation is the right plan for you. Hopefully after you’ve taken the time to consider the following questions, it should be easier for you to make a decision about how to handle your current debt.
Will You Be Able to Receive a Lower Interest Rate after Consolidation?
Debt consolidation means that your debts will be combined into one. This way, you will have one lower interest rate and only one monthly payment. Having a lower interest rate is one of the main reasons most people consider debt consolidation. It also means that you will pay a lower amount of interest over the life of your loans.
Do You Have So Too Monthly Payments to Make that You Cannot Keep Track of Them?
You may be in a situation where you have several debts that you owe to several different creditors. Undoubtedly, this will add a high level of stress and will make it hard to stay on top of monthly payments. Maybe you have already lost control and failed to make payments on these debts. That’s when your creditors send your accounts to collection agencies, and your situation seems out of control.
If the above-mentioned scenario is the case for you, debt consolidation could definitely help you. After consolidation, you will only have to make one payment toward your credit card debt or your medical bills, making your financial burden more manageable each month. You can stop worrying about how you are going to make several payments each month that you cannot afford, and you will have more money to put toward your mortgage, phone bill and grocery bill making life a little more stable.
Have You Tried to Get Out of Debt and Were Unsuccessful?
It’s better to make an attempt to pay your debts in full before you consider debt consolidation. That’s because you learn so much from getting yourself out of debt. However, it’s not always possible for you to become debt-free on your own, and you shouldn’t feel ashamed of that fact. If you simply do not make enough money to pay your minimum credit card balances in a reasonable amount of time, it is time to think about debt consolidation.
Are You Aware of How You Got Into Debt?
Before you get started on debt consolidation, you have to know what caused you to fall into debt in the first place. This can be a painful examination of how you handled your finances, but it is necessary and will help you in the future.
In most cases, you probably acquired a lot of debt out of necessity. For example, you may have taken on a student loan that allowed you to go to school for a degree. You may have obtained an auto loan so that you could travel to the job that you got with your degree and you may have a mortgage because you also needed a place to live. These three types of debt are the most common types that Americans have today, but they are not the ones that debt consolidation can address.
Credit Cards, Medical Bills and Utility Bills
The debts that you need to concern yourself with at this moment are the unsecured debts, and the most common is credit card debt. Before debt consolidation, you will want to think about how you used your credit cards. Perhaps you used them to pay for special treats for yourself and your friends. You may be an impulsive shopper who didn’t put a lot of thought into the purchases you were making. Maybe, you used your cards to finance a lifestyle that was beyond your means.
If you have gotten into credit card debt because of misuse, it’s important to realize that you need to limit your spending and live within your means. Once you begin a debt consolidation program, you will be unable to use your credit cards to overspend or to make ends meet. Debt consolidation is not going to make it so that you can live without debt. It will only help you manage your debts so that you can have a better financial future.
When Not to Pursue Debt Consolidation
Unfortunately, you will not be able to pursue debt consolidation in Pennsylvania for a mortgage, a car loan, IRS tax debts, student loans or payday loans, but you will be able to seek consolidation for unsecured debts if you have those types of debts. Furthermore, if you don’t owe a significant amount of money on your unsecured debts and would be able to pay them in full in six months, debt consolidation isn’t for you.
Our Debt Consolidation Program can help you if you have any of the unsecured debts listed above. Sometimes, we can even include IRS debt, but our program does not tackle mortgages or auto loans. Debt consolidation in Pennsylvania would love to help you eliminate financial stress, and regain control of your life.