- What is Debt Consolidation?
Learn how debt consolidation works to reduce interest rates and save money.
- What Can Be Consolidated?
Types of high-interest debts commonly used.
- What is Debt Settlement?
Often confused with, but significantly different than consolidating.
- What Debts Can Be Settled?
Learn what kind of creditors that will often settle for less.
- How Do Bankruptcies Work?
How Chapter 7 and Chapter 13 bankruptcies work, and the aftermath on your credit report.
What Kind of Debts Can Be Consolidated?
Debt consolidation is commonly known as bill consolidation, since the largest number of candidates make use of the service to combine multiple high-interest bills like credit card debts into a single loan at a better interest rate. The majority of loans are appropriate for consolidation, provided they are unsecured and are at a higher then average interest rate.Once the debts are consolidated, all of those bills will be lumped into one monthly payment, that's often lesser than the previous monthly payments totalled due to the lower interest rate. It is also possible to pay extra or the same amount every month, but pay off a greater amount of the principle on the debt with each payment.
If you're consolidating on your own without the aid of a service or debt management company by obtaining a loan using your home or something else as collateral, you can choose to consolidate just about any bills you'd like: provided they themselves are unsecured.
Some kinds of high-interest bills that you might like to consolidate include:
- Department store cards
- Higher interest credit cards
- Old service bills (utilities, etc)
- Personal loans (unsecured)
- Collection agency debts
- Post-secondary loans
- Legal and medical debt
- Tax debts
If you're securing involved with a debt management corporation, they may have certain debts that are approved in their specific program and some not, but that will ultimately depend on who you decide to go with. If you'd like to learn more, you can check out some recommended debt management services using the link to the left. Remember to look at multiple companies as some may specialize in certan types of debts.
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Care One Credit Counselling An industry leading debt management program provider pairing consumers with non-profit credit counseling agencies (CCAs). |