Debt can take a heavy toll on your finances, especially when most of your income is going to debt payments. Fortunately, there are different methods through which you can minimize the negative impact your debts are having on your finances.
UmbrellaDEBT is a debt relief company that offers consumers options on how to pay off their debts. If you are looking for a debt consolidation company, speak with UmbrellaDEBT to know what options are available to you.
While debt consolidation is an option for some people, we have found that debt settlement may be a better fit for many others. We have helped thousands of Americans resolve their debts and we can advise you if it’s the best option for you too.
What is Debt Consolidation?
Debt consolidation is a program that works directly with your creditors to reduce your interest rates and possibly your monthly payments. Since this is combining multiple debts into one program, it is considered as 'consolidating' them. When you have several debts, you pay for various interest rates, make different payments, and deal with several due dates. With a consolidation program, however, you only have one interest rate to worry about, one monthly payment to make, and a single due date.
The main aim of consolidating debt is to lower interest rates, help you easily manage your debts, and pay them off faster. Another option that you can consider for reducing your debt is a settlement.
What’s the Difference Between Debt Consolidation and Debt Settlement?
Debt settlement is beneficial if you are experiencing severe financial hardship or if your accounts are already delinquent. Debt settlement may be an alternative to bankruptcy for many consumers.
Debt consolidation is applicable when you can still make your payments but wish to pay less on the interest rates.
Basically, debt settlement may help you reduce the amount you owe your creditors. Consolidation, on the other hand, may greatly reduce your interest rates and will allow you to pay off the debt much faster than if you were to pay just the minimum payments on your own.
Should You Settle Your Debt or Get a Consolidation Loan?
The decision to settle your debt or get a consolidation loan will depend on the following:
- Your ability to pay off your debts
- The amount of debt you have
- If your FICO score is strong enough to be considered for an unsecured loan
When you have been unable to meet the payment conditions for your debts, settling your debt may be the best option. But if you’re servicing multiple credit cards and you want to get a lower interest rate or reduce the number of cards you are trying to juggle, consolidation is the way to go.
During a consultation at UmbrellaDEBT, we will review and give you advice with no obligation.
Get Your Finances Back on Track
Perhaps you’re wondering whether debt settlement really works? If you feel helpless in your financial situation and do not want to declare bankruptcy, debt settlement may be a great answer. Ultimately, even after finding a reputable debt consolidation company or debt settlement company, that is only the first step towards getting your finances back on track. Call us today on 1-855-958-0851 for a free phone consultation with our debt experts.