Is Debt Consolidation the Right Option for You?

Debt is a tough topic to discuss. It can make you feel uncomfortable, embarrassed, and stressed when you hear the four-letter word. You may also feel as if there are no more options left when your debt continues to grow along with your worries for your financial future. There are several debt relief options available for those in need of help and today we’re going to take a closer look at debt consolidation.

What is debt consolidation?

Debt consolidation means you’ll take out a larger, low-interest loan and use that money to pay off your high-interest unsecured loans. You’ll make one monthly payment lower than the sum of the monthly payments for all your credit card debts and other unsecured loans.

Is debt consolidation for everyone?

With any debt relief option, you’ll need to choose what will work best for you. You are always welcome to call us for a free consultation so we can guide you to the best debt reduction option for your circumstances. It’s also important to do some of your own research and consider your personal financial situation.

What are the advantages?

Some advantages of a consolidation loan include consolidating multiple payments into one. You may also reduce the interest rate and also lower your monthly payment.

What are the disadvantages?

Some disadvantages include the plausibility of even getting a consolidation loan these days. To get a secured consolidation loan you need to have the home equity and the credit score to qualify. That also puts your home at risk if something goes wrong. If you don’t have a home and are seeking an unsecured consolidation loan, the interest rate will be higher and they are very tough to qualify for if you can even find someone willing to provide one.

Does it work? What’s the catch?

There’s no catch, but we do have one note: you have to look at all of your options and pick the one that works best for you. Choosing the wrong option can put you in worse financial standing than you were before sought debt relief. Do plenty of research, assess your options, and ask for help if you need it.

New Era Debt Solutions is ready to lend a hand. Contact us for a free consultation today so you can start living debt free. You can also receive a free debt analysis so we can help you choose the option that works best for you and your situation.