Is Debt Consolidation the Answer for You?
While there are many reasons people find themselves drowning in debt, the end result is often the same. At some point, it becomes impossible to make the payments due every month. That, in turn, creates an unhealthy level of stress that only serves to compound the problem. One option those burdened by debt turn to is Debt Consolidation. The process allows the repayment of debt without having to go bankrupt. But, Consolidation Loans are not the ideal solution for everyone. There are factors everyone should consider when deciding if Debt Consolidation is the best answer for their specific situation.
What is a Consolidation Loan?
The concept is actually quite simple. As a rule, a consolidation loan combines the debt from all unsecured sources into a single loan. The payment is designed to be more manageable than the combined totals would be if each payment was made individually. The process allows people to better manage their money and, since most consolidation loans have interest rates lower than credit cards, it can save the borrower money over the term of the loan.
Who Can Qualify for a Consolidation Loan?
Traditional lenders offering consolidation loans typically insist the borrower meets specific criteria to qualify for the process. First, potential borrowers who have been bankrupt within the past ten years are not eligible for a consolidation loan. If your credit report shows a history of late or missed payments, it is unlikely a loan to Consolidate Debt will be offered. Potential borrowers must also be currently employed. The requirements mean individuals who waited too long to consolidate their debts may have trouble qualifying for a Debt Consolidation loan from many lending institutions.
What Can Borrowers Who Have Been Turned Down for a Consolidation Loan Do?
Even those who tried to make their payments for too long and fell behind, there are other options available. It is, in some cases, possible for consumers to discuss the issue with individual credit card companies to reduce payments or obtain lower interest rates. However, most companies are hesitant to do so, especially if there are any delinquencies involved. Even when a borrower is able to garner concessions from one credit card company, the others still expect their payments every month. When the idea is to make the situation more manageable, negotiating with individual creditors rarely provides the necessary relief. However, Capital Debt Solutions offers the types of assistance many borrowers need to get their finances back on track.
How Can Capital Debt Solutions Help?
Capital Debt Solutions provides alternatives that still allow borrowers to recover financially after life events create difficult situations. With several consolidation options available, there is a solution to fit your needs. Capital Debt Solutions helps over 100,000 Australians to work their way back to financial stability every year. Our programs allow borrowers to:
- Reduce their total monthly payments
- Significantly lower the interest rates for their outstanding debt
- Consolidate all unsecured debts into one affordable monthly payment
That means those collection calls will stop, and you can enjoy your time at home without having to worry about creditors calling. Even opening the post is less stressful, as those piles of bills won’t be a problem anymore.
What Other Benefits Will Borrowers See When Debts are Consolidated?
While individuals normally understand Debt Consolidation means creditors won’t be calling or posting threatening notices all the time are major benefits, they don’t always realize how important removing stress can be. Everyone understands how important their health is, but most don’t realize how significantly stress impacts their personal well-being. Stress does, in fact, negatively influence areas of life not normally considered.
- Family relationships often suffer dramatically when financial issues are present. Financial issues and the stress they create destroy many relationships with both partners and children.
- Workplace issues develop when stress levels are too high. Tension makes it harder to focus on work duties, threatening jobs and placing stressed workers in danger of having workplace accidents.
- Medical issues develop when too much stress is present. High blood pressure and ulcers are two commonly seen results of excessive stress, and both present a significant threat to anyone’s health.
Taking steps to handle your debt will go a long way towards reducing those threats. At Capital Debt Solutions, we understand how important it is to deal with these types of issues and work with clients to find the best possible solution to resolve their debt problems.
How Do Consolidation Experts Help Individual Clients?
Most importantly, our team understands your situation is unique and requires special attention. Although there are a few individuals who do not manage money well, most people don’t simply go out and bury themselves in debt they cannot repay. In fact, many people who find themselves needing help dealing with their debt have gone through some life event that precipitated their inability to repay the money they’ve borrowed. That could mean a job was lost or an accident kept the individual from working. Illnesses are also major contributors to debt, as the bills keep piling up even when someone is ill. Our experts tailor a plan to meet each client’s specific needs, regardless of how the situation developed.
The important thing anyone experiencing debt collection calls and posts needs to remember is that the issues won’t simply go away on their own. If debt problems are not addressed promptly, even more issues often arise. We can help people overwhelmed with debt to get their lives back on track. To find out if consolidating your debt is the best option, contact the experts today.