About consolidating debt
If you are struggling to manage your debt but unsure of what steps to take, you can look into solutions offered by loan consolidation companies. Many of these paths negatively affect your credit score, require long-term dedication and obligate you to still pay off the majority of what you owe.
Debt consolidation companies communicate with your debtors to negotiate lower rates on your behalf.
Lower interest rates allow you to more quickly pay off your debts.
This debt relief program does not have a negative impact on your creditors but may limit your credit options for the duration of the program.
Bankruptcy: This should be seen as a last resort as it negatively affects your credit for many years.
For more information on the best debt consolidation loans and credit management options, have a look at our articles on debt consolidation.This rule strengthened consumer protections against deceptive claims and prohibited debt relief companies from charging advance fees for service.While a debt consolidation is less risky than other options, like bankruptcy, it still carries a considerable amount of risk.During this program, you receive financial counseling and meet with a financial advisor.Additionally, the company managing your debt management program contacts your creditors and attempts to negotiate lower interest rates on your behalf.