Debt Consolidation Loans: What People in Iowa Should Know
Iowa is one of the most financially stressed states in America. The cost of living is increasing and wages are not keeping up, meaning that many people struggle to make ends meet. For this reason, debt consolidation loans have become a popular debt relief option for residents who need help with their finances but don’t want to declare bankruptcy or go through a lengthy repayment plan. In this article, we’ll discuss about Iowa debt relief and what debt consolidation loans can do for you if you’re struggling with high-interest credit card debt or other types of unsecured debts like medical bills, and how they might be able to help improve your financial situation in the long run!
How Debt Consolidation Loans Work
Mathematically, debt consolidation loans are the best option for people who are looking to avoid bankruptcy or a lengthy repayment plan. This is because they take all of your debts and combine them into one lump sum payment that you make each month. For instance, if you have $15,000 in credit card debt and your monthly payment is $500 a month. But you move that $15,000 onto a new loan where your monthly payment is $400 a month . You’ve just saved yourself $100 each month.
The Benefits of Debt Consolidation Loans
Debt consolidation is often the best option for people who have a lot of different types of debt, and this is because they allow you to pay off all those debts in one go using an affordable monthly payment plan. This can be great if you are trying to pay off your debt sooner or if you are tired of paying high interest rates.
The Drawbacks
One downside to debt consolidation loans is that in most cases, they require excellent credit so the rate and monthly payment can be a little less affordable than it would be with something like an unsecured personal loan. They also don’t have any tax deductions or breaks.
Alternatives to Debt Help
If you have applied for a debt consolidation loan and you are needing help with your debt, then debt settlement may be the next best option for you.
A debt settlement program can be a great way to help people get out of debt quickly in some cases. If you are looking for something that will allow you to keep more of your money and is not as expensive, then this might be what you’re looking for. From working with the creditors, they reduce the amount owed on the account through negotiation.
Your best bet is to talk to a debt settlement specialist, like any of the professionals at Alleviate Financial Services.
We have programs available in Iowa that will help you settle your debts—for less than you owe—and you may qualify for them.
Schedule a free consultation today for a risk-free debt assessment. The only thing you have to lose is your debt.
