FAQ’s – Debt Consolidation Loans

What is debt consolidation, anyway?

Debt consolidation is a classic debt relief method that allows you to pile all your smaller debts into one larger, lower-interest debt. This simplifies your budget, helps you avoid accruing too much interest on high interest debts, and also allows you to pay off all your debt with one low monthly payment.

What’s a debt consolidation loan?

It’s a low-interest loan that is taken out in order to consolidate all of your current debts. In many cases, it may be secured with collateral. It other cases, it can be unsecured. It can also serve two purposes, such as a mortgage loan that also has debt consolidation involved in it. (Those kinds of loans are called debt consolidation mortgages.)

Which is better, a secured debt consolidation loan, or unsecured debt consolidation loan?

It all really depends on what you’re looking for in a loan. Secured debt consolidation loans tend to have lower interest rates and higher approval rates. However, you will have to secure the loan with collateral. If collateral is an absolute dealbreaker, then unsecured loans are the way to go.

Can I use a Home Equity Personal Loan for debt consolidation?

Absolutely. In fact, many people do it.

Do I have to own a house to qualify for debt consolidation loans?

Nope. The Credit Express has helped plenty of renters get unsecured debt consolidation loans at low rates, too.

Do I have to pay anything extra in order to consolidate my debt?

Most debt consolidation groups will charge a fee, and that can be structured through a number of different methods, depending on who you work with.

Can this still help me if I have any late payments?

Yes. Debt consolidation actually can allow you to pay off late or missed payments in a pinch!

Can you help stop the creditor calls?

Once you have gotten the paperwork signed off, you will be appointed a lawyer who will talk to your creditors and get the calls to stop.

Will this hurt my credit?

Believe it or not, debt consolidation will not hurt your credit score significantly. There will be a small temporary dip in your FICO score, but it will quickly disappear after a month or two.

Can I pick and choose the debts which I consolidate?

The beautiful part of debt consolidation is that you definitely have the freedom to decide which debts you can consolidate. If it’s all about credit card debt, that’s fine. If you need to consolidate all your car payments into one lump payment, that’s fine too. It’s all about freedom!

When should I consolidate my debt?

The sooner you do, the more you will save on interest.

How much can this reduce my monthly payments?

It all depends on how much you’re consolidating. If you’re consolidating a number of very high interest credit cards, it’s quite possible you can save several thousand dollars over the course of a couple of years.

Is this the same as debt forgiveness?

No. Unfortunately, you can’t borrow your way out of debt.

Do I need an attorney’s assistance?

It’s never harmful to speak with an attorney regarding personal and business matters, and often times, it may be the best thing you can do if you think that an attorney’s advice can help you. Although we aren’t a law firm and we cannot provide anyone with any legal advice, you are more than welcome to speak with an attorney that we use for our company. We truly want to get familiar with our clients, and help them in any way we can. Simply send an email to info@thecreditexpress.org and we’ll be sure to forward it.

Still need help?  If you have a question that isn’t answered here, or if you feel like you could use advice when it comes to the best route of financing for your personal needs, we are here to help you make the best choice!  You may call us at (678) 983-4555 or email: info@thecreditexpress.org.  You’re also more than welcome to visit our office.  Evening and weekend appointments are available.