Affordable Debt Consolidation

Affordable Debt Consolidation

Many Texas credit cardholders are reaching their spending limit and need debt consolidation or a debt relief solution.

It is not secret that income is rising slower than the cost of living. This has caused many Texans to dip into savings or, worse, rely on credit cards to help make ends meet. Once the credit cards are maxed, some have no choice but to turn to high-interest sub-prime or predatory personal loans in order to cover necessities. While sub-prime loans typically cap out at about 30%, some predatory lenders charge interest rates up to the high triple digits. These loans are illegal in some states and legal in others, such as Texas, and the interest and fee caps will vary from state to state.

If your debt payments are very high due to high-interest rates, but you have a very good credit score, qualifying for a debt consolidation loan might solve your problems. You will also need a good debt-to-income ratio since even the best credit score will not convince a lender of your ability to repay if you do not have the income to support the debt. A home equity loan or refinance is another way to lower your debt payments, but keep in mind that you are stretching the repayment term often to 30 years, so you might end up paying a lot more interest in the long run. Also, if you move your unsecured debt to your home equity, you could risk losing your home in the future if you are unable to pay it.

If most of your debt is credit cards and you are current with your payments or less than six months delinquent, you may be able to consolidate your debt without a new loan. Your creditors will provide a lower interest rate to the credit counselor, and then you will make one payment per month to the agency that is distributed to the creditors. Sub-prime or predatory personal loans may not be eligible for these programs. While the benefits may far outweigh the negatives for many people, it is important to understand that your enrolled credit cards will be closed from additional purchases. Depending on your current status, your credit rating may be negatively impacted.

If you cannot qualify for a new loan and need a lower monthly cost than credit counseling can provide, there is another option. Consider debt negotiation if you want to resolve your debt in a shorter estimated time, especially if you do not want to file bankruptcy. Since your balances are negotiated rather than the interest rates, you may be able to have a program payment of less than half compared to minimum payments. Your money is not paid to the creditors monthly the same way as a credit counselor. Instead, you deposit money into a special purpose account which is used to fund settlements. Programs are relatively short, often 24 to 48 months, but some could estimate to last longer or shorter depending on your budget. Depending on creditor offers during negotiation, programs could also take longer or shorter than originally estimated. Some companies offering this service will accept predatory loans, and others will not. If you have good credit, it will be negatively impacted, but no matter you’re current situation or the solution you choose, once you resolve your debt, you begin rebuilding your credit in a relatively short time. Also, when the debt is gone, your debt-to-income ratio improves.

The company you choose to help you with your debt is imperative, especially using debt negotiation. Part of your success depends on your ability to fund the program and the quality of service you receive. Some out-of-state companies charge Texans very high fees. Texas regulation caps the fees companies can charge Texans, and some companies may solicit Texans for these services without being properly licensed in our state. Negotiation companies may not charge their fees until a settlement is complete, with at least one payment made towards the settlement. The fees can only be collected in proportion to the debt amount settled.

Texas residents struggling with debt can contact Affordable Debt Consolidation at or call 800-816-1003 to speak to a Texas Debt Specialist and learn more about multiple options to resolve the debt. The Texas-based company exclusively serves Texas residents. After learning about your situation, their Texas Debt Specialists can provide an affiliate platform to shop lenders offering debt consolidation loans, an affiliate credit counseling program, and their Texas Debt Relief program. The settlement fees for their Texas Debt Relief program using debt negotiation are typically 40% less than most out-of-state companies. The company also works closely with a Texas bankruptcy law firm if you would like to compare bankruptcy to non-bankruptcy options at no cost or obligation for the consultations. Affordable Debt Consolidation is 100% veteran-owned, state-licensed, and Accredited with an A+ Better Business Bureau rating.