Debt consolidation, also known as credit consolidation, offers debt relief by consolidating your monthly debt payments into one affordable payment. Debt consolidation programs are offered by debt consolidation companies and by nonprofit credit counseling companies.
Learn the pros and cons of different credit consolidation options including online consolidation loans from Lending Club, Debt Settlement options and nonprofit debt consolidation services.
Debt Consolidation without a loan is an innovative solution by InCharge Debt Solutions. We take the work out of debt management by consolidating your debt payments into a single, predictable monthly payment. You chose the day of the month that works best for you, based on your personal budget and payroll schedule. This is just one of the benefits available to those who qualify for our debt management program. Other benefits may include lower interest rates from your creditors, waived fees, stopping the collection calls and paying off your debt faster than on your own.
Here are five reasons you should consider InCharge debt consolidation:
According to data from the Federal Reserve, approximately 37% of Americans carry a credit card balance from month to month. Some people carry small balances. Others carry large balances. You may be somewhere in the middle. Carrying a balance over months, years, decades… adds up. The average credit card interest rate is around 15% APR. That’s $15.00 per year for every $100 you carry in debt. If you have $15,000 in debt, you’d be paying $2250 each year to hold that debt. And that’s only for one year. If you carry that same debt for 5 years, you’ve paid $11,250 to borrow $15,000.
It’s not easy to get out of debt. That’s where debt consolidation comes in. Here’s a scenario to help you better understand traditional debt consolidation. After you’ve read that, we’ll tell you how InCharge’s non profit debt consolidation alternative can capture all the benefits of traditional debt consolidation without the risks.
Anne, 32, is a high school teacher. Anne starting using credit in college to pay for books and expenses. She graduated with a small balance on two cards: $2400. As a new teacher, Anne signed up for 2 more credit cards at her favorite clothing stores to pay for a professional wardrobe, accumulating $2500 more in debt. Over the next few years, Anne experienced a number of financial set-backs. She opened another credit card to help pay for a major car repair ($1500) and another to cover expenses when her roommate moved out with no notice ($2500).
Two years ago, Anne was laid off. As a teacher, she thought she had job security, but her state had a budget crisis and teachers with little seniority were the first to go. She was unemployed for one year and then re-hired the following year. With few options, Anne lived off her credit cards while unemployed, adding an additional $9000 to her debt. At 32, she owes $17,900 on 9 different credit cards. In some 2-week spans, Anne has to make 5 credit card payments. “It feels like a big payment is always due. I try not to look at the finance charges. It’s just too depressing. I can barely keep up.”
Anne is interested in consolidating her debt. “Just having one payment to worry about each month would be a godsend.” When she looked into a traditional debt consolidation program, Anne faced a number of problems. Because be she had a very high debt to income ratio, she did not qualify for the the best interest rates. There were also high fees associated with taking out a large loan. Then Anne discovered InCharge’s Debt Consolidation alternative.
With InCharge’s Debt Consolidation Alternative, Anne was able to consolidate all of her payments into one convenient monthly payment, without taking out a new loan. InCharge was also able to help Anne get lower interest rates on 7 of her 9 cards, meaning more of her payment each month would go to pay off the balance, than to interest. With the InCharge Debt Consolidation alternative, Anne will be debt free in 4 years and 2 months. “Having lived with credit card debt my entire adult life, I cannot tell you what it means to me to be debt free in a few years. Every time I make my one consolidated payment, I know I’m one month closer to my financial freedom.”
Get Started Now to find out if our Debt Consolidation Alternative can help you better manage your finances and start down the road to financial freedom.
Some people refer to debt consolidation as bill consolidation because consolidating your credit card debt has the effect of consolidating your bills into one. The benefits of bill consolidation include: not having to make individual credit card payments, less risk of missing a payment or paying late, fewer late fees, and if you work with a nonprofit credit counseling agency like InCharge, the ability to access lower interest rates for many of your credit cards. This enables you to pay off your debt faster because more of your payment each month will be applied to the balance versus the interest.
If you are struggling to make all of your credit card minimum payments and suffering from high interest rates, a debt consolidation loan may be for you. There are a number of companies that provide debt consolidation loans, but you will need a credit score in the mid to high 600s, however, to access interest rates south of 10 percent. Learn more about debt consolidation loans.
Consolidating your credit card debt can help you pay it off faster, but choosing a credit consolidation company can be difficult. There are a number of places you can go, from online lenders like Lending Club, to debt settlement firms like National Debt Relief and Oak View Law Group. Learn about the pros and cons of various credit consolidation options. Learn about the best ways to consolidate your debt.