Debt consolidation programs provide a number of benefits for those struggling to pay off their lenders. By working with creditors to consolidate an individual’s debt into one easy bill, these programs can be of invaluable service to those in need. If you have unsecured debt that is spiraling out of control, here are some of the reasons you may want to get in touch with a reputable debt consolidator.
Reduce Your Rates
Interest rates are one of the primary culprits when it comes to unmanageable debt. If you are struggling to make much more than your minimum payments each month, interest rates are the reason it may take a long time to pay those bills down. Debt consolidation programs can help you negotiate with your creditors and restructure your payments in a way that brings down your interest rates and helps you put more of your money towards the balance.
Reduce Monthly Payments
Take the average person with a spouse, two kids, and a full-time job. This person has neither the time nor the energy to juggle five or six bills before they even get to the big ones like the car or mortgage payment. Debt consolidation programs can help you eliminate multiple bills by consolidating your obligations into a single monthly bill. Not only does this reduce the amount of money you’re obliged to pay, but it can take a lot of the stress out of managing your family finances.
Reduce Late Fees
Late fees and penalties can conspire to make paying down a loan nearly impossible. This problem is only compounded when you’re trying to juggle multiple bills and keep track of several due dates. By letting a debt consolidator guide you through lender negotiations, you may be able to get those late fees reduced or even, in some cases, eliminated altogether.
Avoid Bad Solutions
As you may already know, debt consolidation programs from a company like CreditGuard of America are not the only solution on the market being offered to those in financial peril. While every solution has its place, some are better than others. So-called consolidation loans can leave you in worse shape than you started. The same can be said for a second mortgage, which could put your house in jeopardy if your circumstances don’t improve. Bankruptcy should be avoided unless it is a last resort. By taking advantage of a good debt consolidator, you can avoid these bad solutions and the drawbacks that accompany them.