Debt Consolidation San Diego: What Are Your Options?
Are you struggling with debt? Do you feel like there is no way out of the cycle of high-interest payments, late fees, and penalties? If so, don’t lose hope. There are many debt consolidation solutions if you are from San Diego that can help take the pressure off your shoulders. In this article we’ll cover all of them – from debt settlement to bankruptcy – and provide a helpful guide for how to find the right one for your needs. Read on to learn more!
1) How debt consolidation works?
Debt consolidation is when you combine all of your debt into one monthly payment. It’s mostly used to consolidate credit cards and unsecured loans, like auto loans or student loans; but it can also be used for mortgage payments as well. The idea is that consolidating your debt gives you more manageable monthly budgeting expenses.
Put together a list of qualifying debts that can be consolidated and then calculate the minimum monthly payment.
Take all of your debt and transfer it to a single loan with a lower interest rate, which can be done through consolidating credit cards or taking out an unsecured personal loan.
You’ll need to make sure that you have enough income coming in every month (or way to cut back on expensed to make sure that you can afford the monthly debt payments)
2) When to consider debt settlement?
Debt settlement is a way to handle debt when you owe more than what you can afford and are at the point of being unable to make your monthly payments. The debt that’s owed can be negotiated for a lower amount and the debt settlement company will work with your creditors to lower what you owe.
The main reason individuals opt for debt settlement is because it’s less expensive than filing bankruptcy, which can be more complicated and take a lot of time before any benefits are realized.
Debt settlement can be a great option when you owe more than what you’re able to pay off on your debts.
Bankruptcy is a legal process where debts are written off. It’s the next step after debt settlement in some cases, but it can also be an option when you owe more than what you’re able to pay off on your debts and want them forgiven.
The main reason individuals opt for bankruptcy is because it offers immediate relief. However, the negative affects of bankruptcy will follow you for the rest of your life.
The choice to file bankruptcy is a big decision, so it’s best that you learn all about debt settlement and what may happen after before making any decisions.
If you are at a place where you you need more help with you debts than a debt consolidation loan than debt settlement or debt relief may be the next thing you would want to look into.
Your best bet is to talk to a debt settlement specialist, like any of the professionals at Alleviate Financial Services.
We have programs available 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.