Typically a secured debt consolidation loan allows you to lump most of your debt payments under a single bill at a lower rate than the individual rates you may have been getting.
However, in order to secure a lower rate with a secured debt consolidation loan, you must have some type of asset to use as collateral, such as your home. More information on that can be found below. How much of a loan you can get depends on the type of collateral you have and how much it's worth. These types of loans can also be repaid back over a long length of time, anywhere from 5 to 30 years, and they can often boost your credit rating if managed properly. Otherwise, you risk defaulting on the loan and losing the asset used as collateral.
Much like a secured debt consolidation loan, an unsecured debt consolidation loan lets you combine your debt payments under one lump sum with one interest rate. However, unlike a secured debt consolidation loan, you're not required to have an asset or collateral to receive such a loan. Because you aren't offering up any collateral for such a loan, it's a much riskier loan for debt consolidators, and your interest rate could be somewhat high.
These loans are determined according to your credit history and score, and the upside to an unsecured debt consolidation loan is that you aren't in jeopardy of losing your asset should you default.
A home equity loan lets you borrow money, using your home as collateral. This home equity loan is essentially a second mortgage that allows you to turn the equity on your home the money your property is worth minus the amount you owe on it into cash to be used at your discretion, such as debt consolidation.
These loans are set up to be repaid quicker than your mortgage in equal payments with a fixed interest rate. There are also programs which permit you to consolidate all of your credit card debt into one single payment and interest rate. If you've got good credit, you could also be able to negotiate a lower interest rate on your credit cards, making it easier to repay.
While you're in your interest free rate, you should pay double payments in order to pay off your debt faster. But understand that the interest may very well be fairly high after the promotional period. Consider this way of consolidating debt only if you know you can pay off the debt while the introductory rate is in effect. Another option with respect to debt consolidation is to enroll in a debt management program.
A credit counseling agency will help you set up a debt management plan to help you pay off your debt as quickly as possible. This agency will also usually negotiate with your debtors so that they can reduce interest rates and fees. Once the repayments are negotiated you will usually set up an account with the credit counseling agency and pay one lump sum a month into the account.
The credit counseling agency will then disburse the payments out to each creditor. This benefits you because you only have to make one payment, and additionally it gives creditors more assurance that your payments will be made on time every month. Solution: Yes, you can consolidate multiple student loans even if it's from a single lender.
However, there are two ways to consolidate your debts. If you can tackle so many debt payments hands down, then it'd be good that you do it on your own. But, if you can't, then work with a licensed and reputed debt relief service provider in Boston. You must follow a budget strictly, curtail your unnecessary costs and increase cash payments as much as you can to make sense of debt consolidation.
By having your multiple loans consolidated or a single student loan refinanced, you may enjoy lower monthly payment with reduced rate of interest or have your loan repayment term extended. Still, you must obtain your current lender's approval prior to that. How much you can save in Massachusetts Next ».
Can a collection agency in Boston, Massachusetts sue a consumer for credit card debt or do they have to hire an attorney? I'm afraid of the collector's attorneys as they seem to be worse than the collectors. How do I pay off the bills?
Ans: Only licensed collection agencies in Massachusetts can sue a consumer for unpaid card debt. They may hire an attorney to represent them and file the lawsuit on their behalf. To avoid a lawsuit, you should negotiate a payment plan that you can afford.
If you're unable to negotiate a suitable plan, you should take advantage of a Boston debt consolidation program. I'm a year behind on cc payments in Boston. My spouse and I live paycheck to paycheck.
The cards are in my name only. Is there any solution to this problem other than filing a bankruptcy? Ans: If you have multiple credit card bills, you can approach a Boston consolidation company and get enrolled in one of their programs. The Boston consolidation company will work with your creditors in order to reduce your interest rates and lower your monthly payments.
Unlike consolidation, bankruptcy has a negative impact on your credit. Therefore, it is advisable that you choose consolidation over bankruptcy. Find more I've been getting calls from collection agencies about 3 internet payday loans. I've already paid double the amount I owe on most of these accounts. I can't keep current with the payments anymore. Can Boston consolidation companies help me get out of this problem? Ans: Since lending of payday loans is illegal in Massachusetts, you'll only need to repay the principal balance on the loans, and not the interest.
Therefore, a Boston consolidation company can help you in this situation. You need to speak with the pdl lenders so that they allow you to pay off the loans in monthly installments without charging interest rates. This payment plan will carry a reduced interest rate and require just one payment per month. All of your unsecured debts, including credit cards and medical bills, are eligible for consolidation.
For more information about Massachusetts credit counseling from CreditGUARD, call or complete the online contact form today. Learn how much you can save Fill out the information below and one of our experts will contact you shortly. Just a few more details to get started. Standard carrier and messaging rates will apply. Call us at to find out how! Real Stories of Massachusetts Clients. GC from Mattapan, Massachusetts was trying to send her year-old mother back to Trinidad before she passed away because those were her wishes to go back home to her birthplace but she did not make it.
She had to take time off work and she struggled with her bills. She has been juggling each month to stay on track. A client called from New Bedford, Massachusetts with over 14, in credit card debt. She had been a victim of identity theft, so she was a little skeptical about giving us account numbers and other sensitive information.
He is close to his limit and is in danger on falling behind. To help him not fall behind or go over his limit and stay back on track. I have sent him a solution by lowering his monthly payment, lowering his interest rate percentage.
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