Debt consolidation is often recommended to people with debts that carry high interest, such as credit cards. Once you join this program, you will clear your debt in no time since the monthly rates are lower. If you are in a financial crisis, this strategy is perfect for your situation. Imagine having only one creditor and for a decreased monthly payment and reduced interest rates.

 Additionally, you will have an easier time keeping up with bills and expenses. Debt consolidation will benefit you a lot, particularly if you have an unstable or insufficient income. You will have ample time to recover your financial standing.

Debt Consolidation Loan in Pembroke Pines

Debt consolidation loan eligibilityWhen it comes to settling your accounts, probably the first thought that pops up in your head is borrowing from a bank. It is possible, but you have to ensure that the amount you acquire is greater than the combined gross value of your debts. Also, you should understand that by taking out another loan, you are adding another debt that will also need to be paid. So, you will have eliminated a loan, only to start paying for another.

You can negotiate with the creditor and agree on a fair monthly interest rate. Then you can start making monthly payments with the interest fee that you agreed upon. Usually, you would be required to repay the loan in 3 to 5 years. The main thing to consider should be the interest you are charged.

Before any creditor lends you money, they have to review your credit score to determine if you are eligible and if you can manage to pay them back on their terms. 

Your eligibility is a huge determining factor on how much to lend you and how much interest they should charge you. If they find that you can’t settle your other debts, they will probably not lend you your desired sum. Besides, if their interest rate is not lower than your card debt interest rate, it won’t make any difference.

Debt Consolidation Without a Loan

It is indeed possible to clear credit card debts without taking out a loan from another moneylender. Debt relief companies provide debt consolidation through their debt management programs. This does not require borrowers to take out new loans from the bank. 

The debt relief company you choose to work with will negotiate on your behalf with the credit card companies that you owe and come into an arrangement that lowers your monthly payment to a reasonable cost together with the interest rates billed with it.

Once they have agreed on a settlement, it is now your responsibility to pay monthly to the debt relief agency, which will transfer the sum that was agreed on to your creditors. The agency may even convince your lender to waive the underlying costs such as over-the-limit charges or late payment fines.

How Does Debt Consolidation in Pembroke Pines Work?

Bad credit consolidation loansUnsecured loans such as credit card debts require debt consolidation. For debt consolidation to work for you, you need to determine the cumulative amount that you pay every month for your credit card. Additionally, you will need to calculate the mean of the interest that you pay. 

This offers you a statistical view of your accounts and the amount you spend monthly to pay them all. You should then take a peek at your monthly budget, find the net sum of other costs such as basic necessities and see how much you have left.

Often, the leftover sum may be adequate to pay off some debts. Another option is to adjust your budget and avoid overspending, but even that may not be enough. What if you somehow cannot still afford to clear your debts no matter what strategies you use? The only other available option is getting a debt relief package. After taking this approach, you will slowly eradicate your debts and get rid of all your worries.

Finding a Credit Card Debt Consolidation Expert in Pembroke Pines

If you feel frustrated because you can no longer manage your credit card debt, do not panic. Encompass Recovery Group has a solution for your financial setbacks. Our debt consolidation program is here to help you reduce monthly interest rates. We will help you come up with a financial strategy by rolling all your debts into one. This single debt may be paid through a management program, a manual payment, or a loan. 

We will begin processing the debt recovery program right away and implementing our negotiating tactics while dealing with your credit card companies. If you need urgent financial support, contact us or book an evaluation on our website now.

References and Resources

Debt consolidation

Debt management