Debt Consolidation and Peace of Mindby Emily Kerr
Loan Page Columnist
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Most of us don't carry the amount of debt the United States does, but in today's world, almost everyone has debt. Sometimes it's manageable. Sometimes it's not. And sometimes it's manageable but still needs to be addressed before you can apply for a new home loan or refinance your mortgage. That's when debt consolidation comes into the picture.
Debt Consolidation ServicesDebt consolidation is exactly what it sounds like bringing all of your debts together and combining them into one payment. There are nonprofit and for-profit companies that work with debt consolidation. Nonprofits don't charge a fee. For-profit companies build a small, reasonable fee into your monthly payments.
Getting Your Debt on the Same PageUnder a debt consolidation plan, you make one monthly payment for all of your debts. The benefits of a debt consolidation service are that the service can negotiate lower fees, lower payments, lower interest rates, and sometimes reduce or eliminate late fees on the payments that you're making to creditors. Your consolidated monthly payment could very well be lower than what you were paying in multiple payments to your creditors each month. Debt consolidation can potentially shorten the duration of time required for you to payoff your debts.
Credit Score RisingIt's good to be out from under your debt and be able to take a deep breath again. You would also be able to refinance your mortgage or apply for a new home loan to finance an education or take a dream vacation. Once you're making on-time payments, your credit score should start to improve. Debt consolidation can give you that peace of mind.
National Debt Clock
About the AuthorEmily Kerr is a freelance writer with over 425 articles published. She writes about everything from new home construction to new home loans and everything in between.
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