If you’ve been finding it difficult to pay back your debts, combining your credit card balances and non-secure loans into a single payment amount might help.
There are a couple of different types of debt consolidation strategies: with and without a loan. Either way, you’ll need a consistent income source. Let us place you with a legitimate Shrewsbury debt consolidation agency.
All too often, credit cards are as risky as they are convenient. MA Debt Consolidation may be able to help. The most popular form of debt consolidation in Shrewsbury, MA, involves the management of debt through a specialized program.
Debt management plans, often provided by a credit counseling agency, allow you to pay all the money you owe in 3-5 years through a single payment per month, in addition to reduced interest levels, installments, and service fees. Ordinarily your card company begins offering these perks because it will cost them more money if you default. In addition, these types of plans are normally pretty inexpensive, just $25-40 every month.
The thinking behind any Shrewsbury debt consolidation loan is simple: loans from a regular loan company ordinarily have less expensive interest rates than whatever you’ve been shelling out to your credit card issuers.
The many payments you were mailing to different collectors will be replaced by one single monthly installment – your loan payment. Of all the options for debt consolidation in Massachusetts, getting a debt consolidation loan will have the most positive effect on your credit ratings, but these kinds of loans can be tricky. If the loan is secured by your home’s equity, keep in mind what will happen if you go into default. If you don’t have a house to collateralize the loan, the interest will be too high.
If you would like consolidate your debt, it’s best to consult one of our debt experts.
Debt Settlement vs Consolidation in Shrewsbury (MA)
Debt consolidation and settlement are totally different ways to get free from debt. Contrary to debt consolidation, debt settlement is an intensive succession of negotiations that leads to a significant elimination of a percentage of the debt. In reality, debt settlement is detrimental to your credit score, and you have to pay taxes on the debt that’s settled. Therefore debt settlement should be talked over with a skilled professional to be sure that you realize the risks.
To decide which strategy meets your needs, we suggest you request a review of of your present debt – free of charge!
When to Consolidate Your Debt
Preferably, around 36% of your monthly income will be allotted to paying back what you owe. This means pretty much anything you owe on a monthly basis, both secured and unsecured:
- Credit Card Balances
- Auto, College, and Payday Loans
- Mortgage Payments
For example, say you earn $2,674 monthly, which is about average average for Shrewsbury residents, then, if possible, you would spend less than $989 each month. Lamentably, many Shrewsbury residents have severe debt, with a debt to income ratio (DTI) of 50% or higher. That means they are shelling out more than $1,337 per month!
Is your debt load higher than 50%? Then you really should seek the advice of a debt consolidation consultant in your area.
Credit Card Debt Consolidation Policies
As per FTC standards, any Shrewsbury, MA debt consolidation agency is required to:
- Fully describe how their fees work.
- Inform you of how long their programs take.
- Explain how much you have to save before they will connect with all of your credit card providers.
- Clarify how your credit rating will be impacted.
Don’t ever register for a program that has a bad name. To acquire more information, take a look at the area of FTC.gov entitled In Debt?.
Credit Card Debt Consolidation Companies: Shrewsbury (MA)
- Massachusetts debt consolidation company? Contact us!
Debt Collections Agencies in Shrewsbury, MA
- None Listed.