Bankruptcy - Personal Services
If you are beginning to have problems keeping up with your minimum monthly payments and the amount of debt that you are carrying is overwhelming you, debt consolidation is an option worth considering.
What is debt consolidation?
Debt consolidation is a single loan that allows you to repay your debts to several or all of your creditors at once, leaving you with only one outstanding loan.
What debts are eligible?
Not all debts can be included in a debt consolidation loan. Secured debts like your mortgage or car loan cannot be included; however unsecured debt like credit card debt, consumer loans or utility debt can be included.
Who qualifies for a debt consolidation loan?
In order to qualify for a debt consolidation loan you will need to have an acceptable credit rating and enough money to show the financial institution issuing the loan that you can make your monthly payments in addition to your other bills and expenses. If you have a poor credit rating you will not qualify, therefore debt consolidation is something you should consider before you find yourself in more serious financial difficulties.
What are the advantages of a debt consolidation loan?
There are several advantages to a debt consolidation loan which include but are not limited to:.
- Interest rates are lower than the interest rates on credit cards
- All of your creditors will be paid in full
- You will have the convenience of making only one monthly payment
- You should be able to maintain a good credit rating
For more information on debt consolidation and whether or not this is a good option for you, contact Ira Smith Trustee & Receiver Inc. We can help you make the best choices for living a debt free life, Starting Over, Starting now.