Debt consolidation is the process of bundling multiple debts into one single account at the lowest possible interest rates. Some of the benefits of debt consolidation include:
In order to qualify for debt consolidation, the debt has to be unsecured (i.e. there cannot be any collateral attached to this debt). This is usually in the form of a credit card, or in many cases, multiple store credit cards.
There are a few different ways to consolidate unsecured debts. If you have good credit, you can consolidate your debts on your own by taking a personal unsecured loan or do a balance transfer at a lower interest rate. If your credit score is not the best, you will need to go through credit counseling and consolidate your debts using a debt management program.
To qualify for debt consolidation, the debt cannot be more than six months delinquent. Any debt that is more than six months past due usually gets charged off and turned over to a collection agency. At this point, you either have to pay the debt in full or arrange a settlement in order to satisfy the debt. So nip this problem in the bud early, don’t wait until you’re already in over your head.
Don’t despair, call the Debt Ninja for a free consultation. Let the Debt Ninja fight for your peace of mind. You can call toll-free, and the Debt Ninja will locate a national vendor to help with your needs.