What to Expect in Debt Consolidation Loan in Massachusetts?
If you’re in the state of Massachusetts, you might be wondering what to expect when applying for a debt consolidation loan. The process can vary depending on the lender, but it typically includes an application with your personal information and assets, credit check/score, and proof of income. In general, you will need to prove that you are employed full-time or self-employed and have been so for at least 2 years. You’ll also likely be asked about any current debts (besides the one being consolidated) as well as past bankruptcies or foreclosures; if there is anything else that may affect your ability to repay this new loan; how much money is currently available for household expenses each month; where all balances and payments are on all current debt; and proof of identification. You will want to plan ahead for the process, as it may take weeks or months before you receive a decision from your lender.
The Benefits of a Debt Consolidation Loan
A debt consolidation loan can help you to simplify your payments, reduce the monthly interest rates of some or all of your debts, and lower overall costs. There are many benefits associated with taking out a single new loan (such as consolidating six different credit cards into one payment) instead of paying off each account individually; in addition freeing up more cash requirements to pay off your debts, as well.
How much can you borrow? The maximum amount of debt consolidation loan that will be available for personal unsecured loans is $250,000 and a limit on the total balance owed to creditors in all accounts must not exceed $750,000. Your specific lender may have different
If you are at a place where you cannot afford to pay what you owe and a debt consolidation loan is not an option for you. You may want to consider debt settlement as your next option.
Debt settlement is a process in which you negotiate with your creditors to lower the amount that you owe.
The Benefits of Debt Settlement
A debt settlement program can include:
– Lower monthly payments
– Reduced interest rates
– Lowered amount owed
You will also be able to resolve your debts quicker than a debt consolidation loan so that you can get back on your feet financially.
If you are at a place where you you need more help with your debts than a debt consolidation loan, then 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 in Massachusetts 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.
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