How Interstate Associates Can Help You Find Relief from Credit Card Debt

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One thing that holds so many people back from financial security is credit card debt. It is a vicious cycle that many of us fall into and struggle to find the way out. Relief from credit card debt is possible though and many people often find Interstate Associates debt consolidation a solid option.

What Is Interstate Associates Debt Consolidation?

Debt consolidation takes all your current credit card debt and rolls it into one new payment. This allows you to have one single payment each month versus multiple payments due on different days for different amounts and different interest rates.

In a nutshell, it can help make budgeting your monthly income.

When is Interstate Associates Debt Consolidation A Good Idea?

If you have good credit and have found yourself in a tight spot due to unforeseen life circumstances like job loss, change of careers,  unexpected medical expenses, going back to school, etc then debt consolidation might be the answer. 

You’ll want to look at the interest rate being offered (sometimes it can be lower than your current credit card rates), fees associated with the Interstate Associated debt consolidation and the length of the loan. 

These are all important considerations when looking at debt consolidation. You don’t want to go from being able to pay off your debt in two years to a ten-year loan. Be wise about your options and look at the long-term. 

One of the main keys to a successful debt consolidation plan is having a good credit score. This allows for so many more loan options and possibly lower interest rates. 

You’ll want to examine the pros and cons of a debt consolidation plan before making a final decision.

What If You Have A Poor Credit Score?

However, if your credit score isn’t the greatest and the debt is high there can still be credit card debt relief options available to you it may just not be debt consolidation. 

Those with poor credit scores may want to consult with a certified credit counselor to see what options are available for your circumstances. 

What Are the Types of Credit Card Debt Consolidation?

There are a number of ways to consolidate your debt into one monthly payment with hopefully a lower interest rate (just make sure it doesn’t extend the loan payment period for an extra-long amount of time). Interstate Associates is available to help you find the right option for your situation.

1. Balance Transfer: Move your high-interest credit cards, student loans, etc to a zero or low-interest credit card.
2. Take a personal loan: No collateral required and it lets you lock in the interest rate and length of the loan so you know exactly how long you’ll be paying and the monthly amount.
3. Home Equity Loan: If you own your home and you’ve built up equity in it you can borrow against that equity to consolidate your credit card debt into one monthly payment. A home equity loan usually has a low-interest rate and no closing costs. 

What Debt Can I Consolidate?

The most common type of debt consolidation is for credit card debts. At least, it seems to be the one that is most talked about, but what about other types of debt?

In addition to credit card debt you can consider consolidating these:

• Medical bills
• Payday loans
• Student loans
• Taxes
• Bills that have gone to collections

What Are The Benefits of Debt Consolidation?

The pros over at Investopedia share loads of information about debt consolidation but the part I was most interested in sharing is the benefits. 

The biggest, if things have gone this far, is that it will stop debt collections agencies from calling you provided the debt they are calling on has been included in the consolidation. Whew, no one likes getting those calls so this is one way to get that phone to stop ringing.

If you have to secure your loan with an asset you may be able to qualify for a tax deduction. A little bonus for having to use that asset against the debt.

Additionally, if you are able to pay off the consolidated loan faster than the original credit card debts it can help your credit score.  

Debt Consolidation Does Not Equal No Debt

A misnomer of debt consolidation is that debt consolidation reduces your debt load. That is not the case. If you owe $15,000 in multiple credit cards before the consolidation you’ll owe $15,000 on a loan payment once the consolidation is complete. 

The reason you may choose to consolidate the debt is so that you have one payment versus multiple payments as mentioned earlier. The payment amount could be more or less depending on the type of loan, interest rate, length of loan and fees. 

If you are looking to reduce your debt load that falls under debt settlement options where you make arrangements with your creditors to pay less than you owe. Normally this requires an immediate payoff so if you are running a tight budget it may not be an option. 

Is Debt Consolidation Right For You?

Really, the only one that can answer that question is you. You’ll want to look at the pros and cons of the debt consolidation, your current debt load, your financial goals and what outcomes you want.

You’ll also want to consider your current spending habits and if you’ll be able to stick to a budget. If you’re unsure how to create and stick to a budget enlist the help of a credit counselor or trusted friend.

You don’t want to consolidate your debt and then turn around and create more debt by running up those credit card balances again.

If anything, cut up those cards once the debt is consolidated to resist that temptation and whatever you do, don’t open another line of credit.

The goal of debt consolidation should be to become completely debt-free.