Pay Off Debt
For many residents in Virginia and elsewhere, starting to pay off their credit card debt can be challenging for any number of reasons, including unemployment, a personal hardship, or an unexpected medical crisis. If you are also in a similar predicament and feel like there is no end in sight for your debts, you might be interested in finding out how debt consolidation can potentially help you pay off your credit card debts at an accelerated pace and at potentially reduced interest rates.
Facilitated by a credit counseling agency or company, debt consolidation allows you to consolidate all your credit card and unsecured debts into a single and more manageable monthly payment. For many consumers, having one, simplified payment plan is preferable to making multiple payments to individual creditors. The goal is, with a more structured and more affordable repayment plan, you can ideally reduce your debts sooner than if you only continued to make the minimum payments at higher interest rates.
In addition, many consumers consider debt consolidation to be a popular alternative to bankruptcy, which is also a form of debt relief, but one that has a more damaging and longer lasting consequence on your personal credit. Find out if you qualify for savings and get a free debt relief analysis and savings estimate. Start here.
What You Need to Know About Credit Counseling
Debt consolidation through credit counseling, or a debt management plan (DMP) , is a proven and legal way for many consumers to get relief from credit card debts and other types of unsecured debts - such as medical bills, department store charges, or utilities. Before choosing a credit counseling service, however, it is wise to know some of the basics of how it works, what steps are involved, and what you can expect.
Facilitated by credit counselors, debt consolidation generally begins with a thorough assessment of your financial situation - taking into account your income, outstanding financial obligations, and other assets and property (if any). Once credit counselors have a clear picture of your finances and determine a reasonable amount of money that you can allocate to pay off your debts, they will typically develop a strategy to help you pay down your debts sooner than if you only continued to make the minimum payments at higher interest rates.
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With a game plan in mind, they will generally submit proposals to credit card companies, on your behalf, requesting that you may be able to pay off your debt at lower interest rates, and also allowed a waiver of late fees and other penalties. Creditors that accept the proposals are then added to the debt management plan. Credit counseling agencies, in turn, distribute those funds to creditors that are in the plan.
How Can You Potentially Benefit With Credit Counseling?
As mentioned earlier, the goal of debt consolidation through credit counseling is to provide you with a single, more structured, and more lenient repayment plan that can, ideally, help you direct more of your payment into paying off the principal on your credit cards versus just the interest.
For many consumers struggling with credit card debts, a debt consolidation plan - if followed faithfully - can put them on a path towards paying off their debts at an accelerated pace. In addition, reputable credit counseling agencies may even provide you with a due date (or the time funds are taken from your account) that takes into consideration when you get paid.
The bottom line is, credit counseling allows many consumers a way to potentially pay off or reduce their debts without seriously damaging their credit history - the way that bankruptcy typically would. That's why it makes sense to find out how much savings you can potentially get through credit counseling and discover how you can get a fresh financial start. Click here for a free debt relief analysis and savings estimate. - at no obligation to you.