The Purpose of Debt Consolidation Loans

If you find that you are juggling payments and are looking to clear your debt then you might want to consider a debt consolidation loan.debt consolidation loans

Debt consolidation loans allow you put all of your loans under one loan that is more manageable.

Who Are Debt Consolidation Loans for?

The fact is that many of us live in debt, each debt will have a minimum payment that needs to be made, but instead of doing this you can bring all your debts together and rather pay just one monthly payment that is more manageable. However, you need to look at all the factors involved with a debt consolidation loan before you decide if it is the right move to make.

What are Debt Consolidation Loans?

A debt consolidation loan will transfer the money that you owe into one loan and this loan will only have one monthly payment.

All of the money that you owe will need to be paid back, but with a loan consolidation you might be able to reduce the amount of money that you pay out each month, pay a lower interest rate or be able to spread the costs out over a longer period of time.

The Benefits of Debt Consolidation

Your monthly payments should be reduced when you spread your debt out over a longer term. Many will just pay the minimum payments that are due on the existing debts, but this essential means that the interest is covered and the actual amount of the loan is unchanged.

If you are able to pay the loan off and get no extra debt then your credit rating will improve. Before you apply for debt consolidation loan, it is a good idea to check your credit report.

If there is a high interest rate on your debts whether it is with a credit card or store card then you will generally be able to reduce the interest on your debt with a loan.

The Dangers of a Debt Consolidation Loan

With a debt consolidation loan you may find that you will be in debt for a longer period of time, so you do need to look at the alternatives to reducing your debt or paying off your existing ones.

You should first look at your budget and see what you can afford to pay back on your current debts first.

Applying for a Debt Consolidation Loan

The lender will look at the amount of dent you have and your credit risk.

If you have a history of bad credit or large debts, the lender might offer a secured loan.

A secured loan is where your property is used as security against the loan, which will reduce the risk of the lender. However, you need to be sure that you can afford a secured loan as your house might be at risk.

Personal loans can be used to consolidate loans and the lender will look at the amount that you want to borrow, your credit history and the amount of time that you need to repay the debt.

A personal loan could help to consolidate and reduce your debt if the amount you owe is not too high and there are no problems with your credit rating.


Debt Advice / Tips and Industry

Is a Debt Consolidation Loan the right choice for you?

Do you have a high credit score (780+)?

Do you have minimal debt you are looking to consolidate?

Do you have equity in your home?

Can you afford a payment for the next 10-20+years?

Are you willing to put your home at risk to securitize unsecured debt?

If you answered NO to any of these questions, a Debt Consolidation Loan is probably not the right choice for you.

Is Consumer Credit Counseling the right option for you?

Can you afford the payments you are making right now on your credit card debt?

Can you continue to afford these payments for the next 4-8 years?

Do you have the discipline to stay in a program for 4-8 years?

Are you ok with your credit report reflecting the equivalent of a bankruptcy?

Are you willing to pay 100% of your principal plus a slightly reduced interest rate AND finance charges?

Do you understand you cannot include any accounts in collections or medical bills?

If you answered NO to any of these questions, Consumer Credit Counseling is probably not the right option for you.

Is Bankruptcy the right option for you?

Can you afford $2,000 to $2,500 just to file for bankruptcy?

Are you aware of the new laws that make a Chapter 7 complete liquidation bankruptcy very difficult to qualify for?

Are you prepared to pay back a significant amount of your debt back if you qualify for a Chapter 13 Bankruptcy?

Are you willing to give up your assets such as your car or other property to qualify for a Bankruptcy?

Are you willing to deal with the stress and negative stigma of someone who is going through bankruptcy?

Do you understand your credit will reflect a Bankruptcy for up to 10 years?

Are you willing to pay high interest rates on future lines due to a Bankruptcy?

If you answered NO to any of these questions, Bankruptcy is probably not the right option for you.

Is Debt Settlement the right option for you?

Are you experiencing a financial hardship due to reduced income, job loss, medical emergency, loss of family member, or because the creditors have raised your rates/minimum payments?

Are you having trouble putting enough money into your Savings?

Would you like to avoid bankruptcy?

Do you have at least $5,000 in unsecured debt (credit cards, personal loans, medical bills, or collections)?

Would you like to save hundreds of dollars on your monthly payments?

Would you like to satisfy your debt in 1-3 years?

If you answered YES to any of these questions, Debt Settlement is THE RIGHT CHOICE for you!!!

Which Types of Debt Can You Include In This Program?

Any unsecured debt that does not have any physical assets or property attached to it. You can include credit cards, department store cards, unsecured personal loans, medical bills, utility bills, or any balance owned on repossessed property. You cannot include student loans, child support, judgements, taxes, or any secured debts.

Which Types of Debt Can You Include In This Program?

Any unsecured debt that does not have any physical assets or property attached to it. You can include credit cards, department store cards, unsecured personal loans, medical bills, utility bills, or any balance owned on repossessed property. You cannot include student loans, child support, judgements, taxes, or any secured debts.

Where Do My Monthly Payments In The Program Go?

Each Month, your monthly payments are automatically deposited into an FDIC insured Savings Account that we set up for you in your name. You control this account and it acts as our settlement account, from which your settlements are paid one at time through the course of the program. You are able to receive monthly statements for this account the way you would for any other checking or savings account in your name. If you ever decided to cancel from the program, any money that has accumulated in that account will be refunded to your existing checking or savings account.

Why Is First Source Financial Not Accredited With the BBB (Better Business Bureau)?

Contrary to popular belief, The Better Business Bureau is not a government agency. It is a private, paid-membership organization that has no disciplinary power. Who we ARE accredited with is The Association of Settlement Companies (TASC) and The United States Organization for Bankruptcy Alternatives (USOBA). These two associations are purely dedicated to the Debt Settlement Industry and require strict ethical business practices and standards protecting the interest of consumer debtors and lobbying at State and Federal Levels.


Why Choose Debt Reducution Us

Financial Management negotiation process has been tested and developed over years of experience by our team of professionals in the field of finance and credit card debt. Our professionals are highly skilled in each of their fields of expertise.

Through the established relationships that we have with the creditors and financial institutions, we are able to successfully negotiate the debts of our clients at a substantial discount. Creditors are willing to negotiate a debt with First Source Financial Management, on behalf of our clients, with the understanding that the settled amount will be paid in a timely manner.

Furthermore, creditors are always looking to avoid the ineffective and costly efforts of an outside collection company. First Source Financial Management continues to develop our relationships with creditors throughout the country, and we always maintain a very professional and cooperative relationship with the creditors in order to reach the most favorable settlement offers for our clients. We work directly, and 100% for you.

Debt settlement is a legitimate way of solving your financial problem. Our representatives work each case individually to determine your eligibility, and then, if you qualify, they will establish a program that allows repayment of the debt through affordable monthly payments. Our approach assists you by reducing the time to repay the debt to maximize savings.


What is a debt settlement?

Debt settlement involves negotiating with a creditor to eliminate a percentage of your debt at an agreed upon settlement amount. Debt settlement companies traditionally employ negotiation strategies to help settle your debts. The most important part of debt settlement is to complete the settlement process with your creditors and or collection agencies. During the settlement process, you will make a monthly deposit into a “special purpose savings account” that will eventually be used for your debt repayment. As funds begin to accumulate in the account, First Source Financial Management will start to negotiate with your creditors. Once a debt settlement offer has been agreed upon, funds from your “special purpose savings account” will be sent to the creditor. Once the payment has been made, that debt is considered settled in full. You will no longer owe anything on that debt and the account will be closed.

Why do creditors work with Debt Settlement Firms?

Creditors know that roughly 30% of the 1.5 million bankruptcies that occurred last year were on debt that was reasonably current and should NOT have taken place. Traditionally, people survive by borrowing from one creditor to pay another. However, this process eventually fails when consumers run out of available credit lines and find themselves unable to make their minimum monthly payments.
If a consumer files for bankruptcy, it is very likely that the creditor will receive nothing of the balance that is owed to them. Therefore, a creditor is better off negotiating with a debt settlement company. Our debt settlement company works with customers that have legitimate financial problems and honestly need assistance or has some type of hardship.


Welcome to Debt Reductions

Resolve Your Unsecured Debt Today

At Debt Reduce Us, we are committed to helping you turn your dream of resolving unsecured debt into a reality. With one low program payment per month, our team of experienced professionals can help you settle with your creditors for less than you owe. Our proven negotiation process was developed by our team of professionals in the field of finance and credit card debt. Let us help you to resolve your unsecured debt today.

How the Program Works

A member of our team will work with you to create an affordable savings plan to reach your goal of reducing your debt, and our experienced professionals negotiate with your creditors to significantly reduce the principal balance that you owe.

How to Qualify

Contact us today for a free, no obligation phone consultation. One of our experienced professionals can assist you in determining whether you qualify for the program. Debt Settlement is recommended only for people who are struggling or behind on their bills, or those who are considering bankruptcy. In today’s economy, many people with high medical bills, disability, job loss or reduction of income turn to debt settlement.