Every week, the experts at Liberty Settlements talk with individuals who are in the throes of severe financial difficulty. Liberty Settlements reports that increasing numbers of citizens are opting to file bankruptcy in an effort to reduce stressful financial pressures but that many choose this solution too early, and sometimes without considering suitable bankruptcy alternatives.
According to Liberty Settlements, several options exist if you do not wish to declare bankruptcy. Typically, the most popular option is obtaining a debt-consolidation loan and using it to pay off all existing credit lines. In other words, debt consolidation means acquiring a new, unsecured loan and using those funds to pay off other outstanding debts.
Liberty Settlements says that an unsecured debt consolidation loan will help you consolidate all your unsecured debt and avoid bankruptcy. Choosing this route may save you hundreds of dollars per month when you use loan proceeds to pay off existing debt – especially if that debt is in the form of high rate credit cards. While many individuals utilize home equity loan funds to pay off or pay down high interest debt, Liberty Settlements points out that it is not necessary to own a home in order to qualify for a debt consolidation loan.
Debt consolidation loans may be repaid over a longer term at lower interest rates, informs Liberty Settlements, and so your monthly repayments are lower. If the loan is collateralized by a home or other real estate, then the interest rate and payments may be even lower, adds Liberty Settlements.
But Liberty Settlements cautions that it’s important to compare the benefits vs. risks of a debt consolidation loan before signing on the dotted line. You may want to seek professional assistance from a debt settlement service like Liberty Settlements. The decision on which option will meet your needs best will depend on whether you qualify for low mortgage rates on debt consolidation loans as well as just how much debt you need to consolidate.
True, says Liberty Settlements, borrowing for debt consolidation immediately eliminates multiple debt bills every month. You won’t receive calls and letters from creditors every week. Your credit rating will not be further damaged, in fact you will probably see it begin to improve. You’ll save money with lower interest payments and once credit cards and other debt is paid off, you have the hope of a new beginning and can create a budget to live frugally and wisely.
Debt consolidation can be a valuable tool, assisting in managing and reducing your debt, especially if you’ve been unsuccessful in doing that on your own. There is no way that you can completely fix bad credit without the ability to reduce debt and pay your bills on time. However, once your debt has reached a certain level, this can seem almost impossible to accomplish.
A credit counselor at Liberty Settlements can provide you with other options, including debt management plans and debt settlement programs. Call Liberty Settlements today for more information at 877-269-0288.