New York, New York (PRWEB) November 02, 2012
Debt problems may be looking more woeful as the holiday season comes into view. Between mortgage payments and other financial obligations, average Americans may be finding themselves drowning in seemingly insurmountable odds against debts. Is debt consolidation the end-all and be-all resolution? DebtConsolidationUSA.com, a leading information and referral resource on debt management and credit counseling, recently released a series of illuminating reports on loan consolidation giving thousands of Americans a clearer picture at finally resolving debt issues.
The New York-based debt management and credit counseling resource reveals that perhaps one of the more compelling advantages to considering consolidation is that it will save the borrower from having to declare bankruptcy. While legally filing for an inability to meet financial obligations could fend off creditors for a time, inevitably giving the borrower some relief, the move will nevertheless affect credit rating, blemishing a borrower’s record for seven to 10 years. Debt Consolidation USA goes on to cite loss of employment opportunities and increased home or auto loans as some of the future fallouts from opting for bankruptcy as opposed to consolidation.
Debt Consolidation USA also notes, “Couple that with the fact that you will still have to repay most of your debt for up to five years with Chapter 13. For these reasons debt consolidation makes a lot more financial sense.”
The resource website further adds that borrowers using their consolidation programs could legally slash unsecured debts by the thousands in 24 to 48 months. But this would, of course, depend on the borrower’s situation and the creditor’s willingness to negotiate. Debt Consolidation USA explains, “Credit card debt consolidation can help you reduce your unsecured debts by thousands. For example you could reduce $25,000 in Visa and MasterCard debt to $0 in 24 to 48 months and save thousands.”
Debt Consolidation USA presents thousands of Americans across the states with clear and hopeful, but realistic, programs that could bring them out of debt. The online resource also shares free budget tools to aid families and individuals who are struggling to gain control over their finances. This means that beyond providing informative reports on debt resolution programs, Debt Consolidation USA also enables site visitors with the crucial tools for managing finances and delivers valuable insights that may well bring financial freedom.
In addition to avoiding filing for Chapter 13, consolidation can organize a borrower’s multiple debts from medical bills, cash advances, other personal loans, and credit cards into one account. The key, according to Debt Consolidation USA, is to rely on the expertise of debt settlement companies to consolidate and settle debts. A debt settlement company can negotiate with creditors to significantly decrease the amount of debt that is agreeable and set up a trust account where the borrower can deposit payment. It’s a way for creditors to guarantee payment and for borrowers to gain relief from stressing phone calls from credit card companies and collection agencies.
In one of its more recent report, Debt Consolidation USA compares consolidation and credit counseling and finds that both could have a negative impact on credit score. Credit counseling could affect the amount of credit available to a borrower while consolidation entails freezing payments to creditors for five to six months, which gets reported to credit bureaus. While the online resource recognizes there is no “one-size fits all” solution to debt problems, it maintains that consolidation is still a more ideal solution to chipping away at debts.
For more financial insight and more tailored solution to debt problems, get in touch with Debt Consolidation USA.