The costs of gas, food, household goods, and other items and services seem to be rising with no end in sight to this economic uncertainty. At the same time, mortgage rates remain low, but as of February 14th, 2022, average interest rates were 4.02 percent, which is over 1 percent higher than the all-time 2.97 percent in January 2021. Many economists speculate that rates will continue to rise throughout the year.
While the rate increase affects mortgage payments on new loans more than other types of debt, most unsecured revolving debt and lines of credit are variable rates. So if you are struggling to make minimum payments now, it could be much more challenging as time passes. The combination of rising interest rates and the continuously rising cost of living might make now the time to find a solution to resolve your debt.
If your credit rating and debt-to-income ratios are sufficient, then you might be able to qualify for an unsecured debt consolidation loan to pay off high-interest debt and have one payment per month. This payment will likely be lower compared to high-interest credit card payments. Affordable Debt Consolidation utilizes an affiliate platform to help clients shop for the best debt consolidation loan without the need to submit multiple applications to multiple lenders. This method also allows Texans to choose a loan offer before placing a “hard inquiry” on the credit report. Reviewing various offers is a huge advantage over applying with each lender individually.
If you cannot qualify for a debt consolidation loan, there are two other non-bankruptcy options to consider. One is a credit counseling program that will lower the interest rates with most credit card debt without obtaining a new loan. You will also have one monthly payment per month and pay off the debt in about five years or less. Credit counseling is a hardship program, so if you plan (and can afford) to obtain new debt soon, this is an option that will not work for you.
A more aggressive hardship debt relief program is often referred to as debt negotiation or debt settlement. This is a service and not a new loan, so keep in mind that the quality of the service you will receive may vary significantly from the company you choose. Affordable Debt Consolidation provides this service exclusively to Texans at a cost that is typically 20 to 40 percent less compared to out-of-state companies. As with credit counseling, this is not a good option if you can obtain new debt in the near future, and you plan to do so. However, if you are struggling to pay your debt or have fallen behind, this may be a great path to resolve your debt in as little as 24 to 48 months, often with a monthly cost of less than half compared to making minimum payments.
To learn more about which debt consolidation or debt relief option may be right for you, talk to a Texas Debt Specialist with Affordable Debt Consolidation. Phone or office consultations are available. Affordable Debt Consolidation is 100% veteran-owned, highly rated with the Better Business Bureau, and has been helping Texans for two decades. If you are anyone you know is a Texas resident and struggling with overwhelming credit card or personal loans, call 800-816-1003 or visit https://affordabledebtconsolidation.com for a free no-obligation consultation today.