Many consumers are struggling to make minimum payments on their debt, and debt consolidation is a great option to find relief from debt. To pay off your high interest debt fast, you can also go for a debt consolidation personal loan. This simply means that you consolidate all other debts into one debt and get a personal loan for this amount only. Then, the loan normally pays off all the debts, leaving you just paying the loan.
Debt consolidation may be useful for some people because it can keep them out of bankruptcy; however, there are also some disadvantages to debt consolidation, which you should also consider. Firstly, debt consolidation requires a very high interest rate, sometimes up to 24%. For someone who already has a poor credit score, or debt problems, this may be a huge disadvantage. Usually, if a person consolidates his debt by getting a single monthly payment made to one lender, he or she can qualify for a low-interest loan that comes with a lower interest rate.
Another disadvantage of debt consolidation is that it does not offer any relief to the creditors in the form of debt settlement. By settling the debts through a debt settlement, both the lender and the debtor benefit. It is true that the creditors do benefit in that they are able to recover at least some of their money by settling the debts instead of losing all the money in the entire process.
Another disadvantage of debt consolidation is that usually the debt consolidation loans are secured by your house. If you default on your payments, the lender can take your house and sell it to get back the money owed to him. This will have a negative impact on your credit rating and will be an embarrassing ordeal for you. Some people end up choosing bankruptcy to escape this humiliation.
You can eliminate your debt problems by using a debt management plan. A debt management plan is a vpayment plan that allows you to pay off your debts through flexible payments. The debt management company distributes regular payments to the lenders on your behalf. You also benefit by eliminating late fees, harassing phone calls and intimidating letters from your creditors. There is no need to opt for bankruptcy and there is no humiliation involved.
You can find out how qualified you are to find an authorized partner through the debt relief network. Through this network, you can compare several debt consolidation companies and find one that fits your needs and offers you the best terms. All you have to do is fill out the application online. If you qualify as an authorized partner, you will be given a quote to pay and you will be on your way to debt relief. For more details on debt consolidation visit https://www.arizonadebtreliefhelp.com/tucson-az/.