When it comes to debt relief many people think debt consolidation is the only answer. But it doesn’t have to be. You may be able to save money with a debt consolidation loan, but there are other options available. Some of the more common debt relief services in Tucson are debt consolidation, debt negotiation, debt consolidation/settlement and bankruptcy. Studying each and every choice to get the best method for your situation can also be very frustrating and time consuming.
If you are considering debt consolidation to pay off your multiple debts then there are several factors that you should consider. The first factor that should be considered is if you are able to secure a low interest rate. Interest rates can vary from company to company and it is not uncommon for them to be several points higher than the next company. When looking for debt consolidation agencies make sure they have competitive rates.
Once you know the interest rate you should look at the different service plans offered. There are several debt relief agencies that offer different plans and some of the better ones will even help with credit counseling. When searching for the right agency find out what is included with the plan and what additional services are offered. Some of these services may be debt management or debt settlement.
If you choose debt management you will still be responsible for paying off your loans, but the debt management company will do this for you. This debt relief option can save you a lot of money because the agency can negotiate for a lower rate of interest and lower payments. Debt management agencies can also help you budget and reduce your spending habits. They can also counsel you on how to avoid future debt.
If you go with debt consolidation you will pay a single monthly payment to the debt consolidation company and they will distribute that payment to each of your creditors. They will hold onto your payment until you have enough saved up to settle all of your loans. The debt settlement process is much like bankruptcy but your credit score will remain intact. In debt settlement you will make one lump sum payment and the agency will bargain on your behalf with your creditors.
The important thing when trying to find debt relief options is to research as many of the companies as possible. Each debt management agency will offer different debt relief programs and they may not all be for you. Researching and choosing debt consolidation and debt management is an important decision.