There are a lot of ways to quickly pay down your debt that don't require declaring bankruptcy. One of the most useful methods is using a debt consolidation loan. These loans are used to quickly pay down any and all outstanding debts, and transfer the debt to the consolidation agency. Sometimes debt consolidation agencies will want a piece of collateral, or a down payment before issuing their loan, but very few agencies will deny you based on your credit score. As long as you can prove that you receive some sort of recurring income, you are eligible for a consolidation loan.
People that are against consolidation say that variable interest rates are to blame after they shot through the root, and caused people to pay much more in the long run than they otherwise would have. These are the same type of people that suggest you only pay off your smallest debts to clear accounts, all the while your larger debts quickly erode your credit score and leave you in a much worse position.
The consolidation agency would work directly with the creditors, and attempt to negotiate better rates. Once they make a deal, the borrower is sent some paperwork to sign, and his consolidation goes into effect. No more paying multiple creditors each month, just one lump sum sent to the consolidation agency.
They would like a return on the taxpayers money, so they really will take the time to figure out what you could pay, and where you will start having more and more difficulty. Having the government act as your consolidation agency works just like using any other consolidation agency. They will negotiate with your creditors, and inform you of anything you might need to know.
They prefer around six months worth of payments as a down payment so if the borrower ends up having problems, they have some time to sort it out. You might think that is seems funny that you would need to pay an agency for them to pay you right back, but your ability to secure enough money for a down payment shows that you have at least some financial abilities.
People that are against consolidation say that variable interest rates are to blame after they shot through the root, and caused people to pay much more in the long run than they otherwise would have. These are the same type of people that suggest you only pay off your smallest debts to clear accounts, all the while your larger debts quickly erode your credit score and leave you in a much worse position.
The consolidation agency would work directly with the creditors, and attempt to negotiate better rates. Once they make a deal, the borrower is sent some paperwork to sign, and his consolidation goes into effect. No more paying multiple creditors each month, just one lump sum sent to the consolidation agency.
They would like a return on the taxpayers money, so they really will take the time to figure out what you could pay, and where you will start having more and more difficulty. Having the government act as your consolidation agency works just like using any other consolidation agency. They will negotiate with your creditors, and inform you of anything you might need to know.
They prefer around six months worth of payments as a down payment so if the borrower ends up having problems, they have some time to sort it out. You might think that is seems funny that you would need to pay an agency for them to pay you right back, but your ability to secure enough money for a down payment shows that you have at least some financial abilities.
No comments:
Post a Comment