What are the Types of Debt Consolidation?

If you know a little about debt consolidation, you probably already know that it means taking out one loan to pay off a number of debts. However, you may not know that there are a number of different types of debt consolidation:

Personal Loan

Personal loans, such as you would get from your local bank or credit union, can be used as debt consolidation loans. A personal loan is an unsecured loan that has fixed payments over a fixed period of time. If you have bad credit or a low credit rating, you could have trouble getting approved for a personal loan or you may be approved but at a higher interest rate, however.

Low-Interest Rate Credit Card Balance Transfers

A low-interest rate credit card balance transfer involves transferring all your credit card balances onto one single credit card. Putting too much debt on one credit card could have a negative impact on your credit score, however. And be aware that low balance transfer interest rates are typically promotional rates that expire after a certain length of time. Make sure you know when the low rate will expire and what the interest rate will be after the low rate expires.

Home Equity Loans

A home equity loan is a loan that’s taken out using the equity in your home as collateral. While the interest rates are typically lower than other types of loans, you must have a fair amount of equity in your home and good credit to qualify for a home equity loan. A major drawback is that if the payments become unaffordable, you face foreclosure on your home. Because of that, it’s generally not a good idea to use a home equity loan as a debt consolidation loan.

Debt Consolidation Loans

Debt consolidation loans are offered by banks, credit unions, and private debt consolidation companies for the specific purpose of combining your debts. Debt consolidation loans vary, so it’s important that you choose wisely. Debt consolidation loans are beneficial because they generally have a lower interest rate than the current rates you’re paying on all of your debts.

Accredited Debt Relief can help you make the right decision when it comes to debt relief. We will sit down with you, examine your debts and finances, and help you decide on the best route for eliminating your debts – whether it is debt consolidation or something else.

For more information on how to consolidate your debt, or to schedule a free consultation, “like” Accredited Debt Relief on Facebook or follow Accredited Debt Relief on Twitter. You can also find Accredited Debt Relief on AFCC (the American Fair Credit Council site) or find Accredited Debt Relief on Yellow Pages.

Posted in Debt Consolidation
Ted has been very helpful and understanding whenever I call him. When I’m in a panic over something he always calms me down and reassures me. He did not make me feel embarrassed or shameful over my debt situation. He is truly a great person!
Hey Andrew! Thanks again for all of your help! All of you have been very helpful & professional. I can’t say enough about how pleased I have been with your services. Thanks again!! Israel
I wanted to take a moment to thank you for everything you have done for me. Over the past week I have had several opportunities to interact with you as we worked through what was for me a very difficult and stressful decision. It might sound simple, but in my experience it is exceptional: You, Andrew, focus on solving problems. You were able to quickly grasp the issue and proceeded to reach a resolution efficiently, while allowing me to maintain my dignity. I have found you to be professional, knowledgeable, upbeat, gracious, patient, and absolutely committed to achieving the desired result and satisfying me, the customer.
Elizabeth C.
I am really glad that I did make that call because if I hadn’t I would be worried so much about the bills and not being able to pay them, along with my health. You explained everything to me and after I talked things over with my husband I realized that this was my best option. I do appreciate your kindness and professionalism. You didn’t make me feel ashamed of needing help, you talked and listened and that made quite an impression!
I initially contacted Brad at Accredited Debt Relief in regard to a financial hardship I sustained as a result of losing my home in the 2007 CA. Wildfires. I found Brad to be a knowledgeable and experienced credit consular that was able to assist me with my financial problems. He was able to adapt his schedule to my needs and gave me the feeling that he cared about my situation and would do anything in his power to help.
Barry S.
Every time I have called Tony if he didn’t pick up the phone immediately, he without fail returned all my calls promptly. I feel as if Tony and I have become friends and I couldn’t be any more pleased with the service he has provided me. If the rest of the service I receive from ADR is as helpful and professional as that provided by Tony then I am going to be one grateful and happy camper. I would like to thank everyone involved to this point with helping me through a tuff situation, especially Tony.