The Fed is expected to raise interest rates several more times over the coming months. While you may be enjoying a low fixed rate on your mortgage if you purchased or refinanced in the last couple of years, your credit card rates are typically variable. If you are struggling to pay your minimum monthly payments now, you may be in deeper trouble as your credit card interest, and monthly payments continue to increase. The good news is there are options to deal with the debt.
Debt Consolidation Loans:
While refinancing your mortgage and paying off the high-interest credit cards is probably not an option at this point due to the rising mortgage rates and reduced equity as mortgage rates rise, you may be able to qualify for an unsecured debt consolidation loan with a fixed interest rate. Start with your local bank or credit union since they may already know your situation. Suppose you are unable to get the loan you need. In that case, you can contact Affordable Debt Consolidation to learn about their affiliate platform to shop multiple lenders offering Debt Consolidation Loans to Texas residents who qualify.
A credit counseling debt management program is another way to consolidate debt without needing a new loan. These programs are primarily designed for credit cards with high interest rates. The credit counseling agency has agreements with your creditors to lower your interest rates, but you will no longer be able to charge on the cards since this is a hardship program. However, the payments could be much lower, and you will be able to resolve your debt in around five years or less so that you can rebuild your credit profile and enjoy a much lower debt-to-income ratio. Affordable Debt Consolidation works with a non-profit credit counselor if you would like to explore this option.
Debt Relief can refer to a number of options but is often associated with debt settlement. Another term is debt negotiation or debt mediation. This is a hardship program that is designed to negotiate reductions of your credit card and unsecured debt balances. Unlike credit counseling, monthly payments are not made to your creditors. Instead, you transfer money into a settlement savings account which is used to fund settlements with your creditors. Not making the minimum payments, whether in a debt relief program or not, will negatively affect your credit score. However, these programs can be an excellent option if you are about to fall behind on your payments, are already behind, or feel that you may not be able to pay your debts in the future. The advantages are your monthly payments could be less than half compared to minimum payments, and you may be able to resolve your debt in as little as 24 to 48 months. Once your debt is resolved, you will be able to enjoy a much lower debt-to-income ratio. You can also start the process of re-establishing your credit relatively quickly if you make the right decisions. Staying current on other debts, such as your mortgage and car payments, will also positively impact you. Affordable Debt Consolidation offers its Texas Debt Relief program exclusively to Texans, with performance fees typically up to 40% less than out-of-state competitors.
Affordable Debt Consolidation is a 100% veteran-owned, Texas-based company exclusively assisting Texans to resolve overwhelming credit card and unsecured debt. The firm is highly rated, Better Business Bureau Accredited, and offers multiple solutions to debt problems. This includes an affiliate platform for Texans to shop debt consolidation loans, credit counseling resources, and their Texas-exclusive program to negotiate reductions of credit card debt balances. Affordable Debt Consolidation also has affordable solutions for Texans facing lawsuits from creditors. The firm also has a special arrangement with a highly-rated Texas bankruptcy law firm for anyone who would like to compare bankruptcy to non-bankruptcy solutions. Talk to a Texas Debt Specialist at 800-816-1003 or visit affordabledebtconsolidation.com for a free and no-obligation consultation.