Defuniak Springs Credit Card Debt Consolidation
Are you overwhelmed with your credit card debt? Do not worry, you can get a solution for your financial setback, with or without a loan. Credit card debt consolidation in Defuniak Springs, FL aims to reduce monthly interest fees as you pay your monthly rate at a lower cost.
A financial strategy will help. Debt consolidation merges multiple balances in a single debt, which can be paid through a loan, a manual payment, or a management program. It is mostly suggested in debts that incur high interests, such as credit cards. As you go through this process, you will be able to reduce your debts until you have paid them all. It works as the monthly rates and fees are lessened.
If you are in a terrible financial mess, this financial strategy suits your situation. Imagine paying solely for a lowered monthly rate and reduced interest fees to one creditor? You will not have a hard time keeping up with all your bills to different sources of debt. This will help you a lot, especially if you have an unstable or inadequate income. You will have enough time to regain your financial status again!
Call Optimal Debt Solutions at (561) 475-5788 if you need help with your credit card debt.
How Does Debt Consolidation Work?
Unsecured debts such as that of credit cards ultimately need debt consolidation. Usually, terms can become tricky, and interests are impossible for this type of debt.
To make debt consolidation work for you, you need to calculate the total amount of money that you send to pay for your credit cards every month. In addition to that, you also need to compute the mean of interests that you pay for those cards. This gives you a comparative analysis of your debts and how much you spend each month to pay for them in total.
After that, take a look at your budget per month. Add the total value of other expenses such as necessities (food, electricity and water bills, medications, hygienic needs, etc.), residential fees, transportation, utilities, and others. How much is left now?
Sometimes, the remaining money can be sufficient to settle some debts. Or maybe adjusting to the budget will do. But what if it’s not enough? What if no matter how you adjust to your budget, you still can’t manage to pay for your bills?
If your answer is yes, then it’s about time that you get yourself a debt consolidation loan or a management program. With this approach, you’ll see how you can slowly eliminate your debts and live a life without thinking about them even when you’re asleep.
What is Debt Consolidation with a Loan?
Probably, the first idea that comes into your mind to settle your balances is to loan from a bank. Well, that’s possible. Although, you have to make sure that the loan you can acquire is an amount larger than the total sum of your debts.
You also need to understand that what you’re going for is another debt, that you also need to pay for, by the way. So, you eliminate a previous debt, and then you need to pay for another one again.
As you negotiate with the loan creditor, you can both settle for a reasonable interest rate per month. Then, you start paying the loan monthly with the agreed interest fee. Normally, you are allowed to repay the loan for 3-5 years. The interest you are charged with is the main consideration.
Before lending you money, creditors examine your credit score—your worthiness to handle and pay for credit. It is a huge factor in determining how much to lend you and how much interest to charge you with. If they see that you cannot pay your previous debts properly, you are more likely to fail in acquiring your desired amount.
Moreover, if the loan interest rate is not less than the interest rate you are asked of in your credit card debt, then it makes no difference at all.
What is Debt Consolidation without a Loan?
Indeed, it is possible to pay for your credit card debts without getting a loan from another moneylender. Credit counseling agencies offer nonprofit debt consolidation by utilizing a debt management program. It does not require a consumer to take out a loan from a bank.
In lieu of that, these nonprofit credit counseling agencies will negotiate with the card companies you are involved in to come into an agreement that reduces your monthly rate at an affordable cost as well as the interest rates that are billed with it.
After all the negotiation and approval, you are now responsible for paying monthly to the credit counseling agency, which will distribute the agreed amount of money to each respective source. The agency can also request that the card companies would cancel the underlying charges such as late payment fees, or over-the-limit charges.
You have to know that this is not a quick, expeditious process of getting out of your financial trouble. Typically, it takes 3-5 years for the debt management programs to be successful in clearing your debt away. Furthermore, missing a payment means the agency can revoke the compromise that was granted to you.
Consulting with a Card Debt Expert
If your card debts are overwhelming you and affecting your overall health, but you are out of solutions, let our credit management company in Defuniak Springs give you a big hand. In Optimal Debt Solutions, we are committed to getting our clients out of financial trouble. We can begin processing your debt management program right away and applying our negotiation strategies when communicating with the card companies you are involved in. If you need immediate financial help, call us or book a free evaluation now through our website.
Call Optimal Debt Solutions at (561) 475-5788 to get a free consultation with one of our Credit Card Debt Consolidation Experts!