Find out what debt consolidation means and how it can help you lower your monthly payments.
Consumer credit counseling, a form of debt management, is ideal for those that don't qualify for a loan but still want a lower rate. Get more information here.
Read what you need to know about this alternative to bankruptcy. Cut your payments and find a plan that fits your monthly budget.
Thinking about making a fresh start? Discover everything you need to know about the different types of personal bankruptcy and small business bankruptcy.
If you are carrying unsecured debt and are in need of a lower interest rate, a fixed rate, or just want the convenience of having one payment each month, you may find that a debt solution is what you need to get your finances in order. Carrying a substantial amount of debt, especially credit card debt, can drag down your credit score and can cause a lack of financial security in your life.
What Is Debt?
According to the Federal Reserve, Americans are carrying more than $2.4 trillion in debt, excluding mortgages. Part of this debt is $700 billion in revolving credit card debt and another $1.6 trillion is in non-revolving short and intermediate credit debt (examples of this type of credit debt would be student loans).
Not everyone in the United States shares in this huge amount of debt. Some families (about 25 percent) have no outstanding debt. In addition, for those households that use credit cards, it's estimated that 30 percent fully pay their debts each month. This means that approximately 45 percent of Americans are carrying that $700 billion debt load.
If you're one of the millions of Americans struggling with debts, there are options available to you. Whether you're just able to keep up on your minimum monthly payments and are looking for a better way to manage your money, or if you're already late in paying your bills, there are ways you can get your finances back under control.
Debt Consolidation Loan Solutions
A debt consolidation loan may be right for you if you're on time with your payments and simply want to reduce the number of payments you have. Most often, this means a secured loan, a loan that is connected to collateral like your home. Putting something like your home at risk to pay off your creditors can create a problem if something unexpected happens and you are unable to pay your bills - you could face losing your home. However, there is another type of debt consolidation loan available, an unsecured debt consolidation loan.
With an unsecured debt consolidation loan, you don't have to risk of any of your assets to get the loan you need to pay off your debts. As long as you are disciplined and aren't having any troubles in making monthly payments, consolidating your debt with an unsecured loan may work for best you.
Debt Management Solutions
One debt management option is credit counseling. Credit counseling is when a consumer credit counseling service (CCCS) helps to review your finances. A consumer credit counseling service can create a customized program to help you get out of debt.
One of those programs is called a debt management plan (or DMP). With a debt management plan, you make one payment to the consumer credit counseling service and they distribute that money to your creditors. The credit counseling service works on your behalf to lower your interest rates and reduce late fees. They do this so more of the money you are paying each month brings down the actual balances. This form of debt management is intended for people who are current on their payments and can afford their current bills. This helps them to get out of debt sooner.
A benefit of using a debt management solution is that with the help of a credit counseling service late payments usually won't appear on your credit report. Monthly payments are being sent to your creditors and that will be reflected in your payment history.
Debt Settlement Solutions
With debt settlement, a company negotiates with your creditors on your behalf to reduce the amount of money you owe. Instead of taking out a loan to pay off multiple debts, a debt settlement company helps you to reduce your overall debt to make it easier for you to pay down.
Debt settlement is better for people who are late on their payments, have experienced a financial hardship like loss of job or unexpected medical bills or who need a lower payment amount. Using a reputable debt settlement company can help you to get out from under debt more quickly, but this form of debt solution will have a short-term impact to your credit history that should be taken into consideration.
Bankruptcy can be expensive and will have a long-term negative impact on your credit history. That's why it's important to receive expert guidance if you're considering declaring bankruptcy. There are several different types of personal bankruptcy alone. Determining which, if any, bankruptcy options are right for you requires experience and an understanding of the Bankruptcy Code.
How AmOne Can Help
At AmOne, our mission is to work with you to match you with the highly rated debt solutions available in your state. Our free service connects you with industry-leading providers who can help you achieve your financial goal, whether it is becoming debt-free or learning wiser management of your existing debt. In just a few minutes, our free proprietary matching system can help you identify great options. We also have financial search specialists to help you gain a better understanding of your options so you can decide what's best for your specific situation. Simply answer some easy questions on our debt solutions form or call us toll-free at 1-800-781-5187 to speak with one of our knowledgeable and experienced financial search specialists.