Texas residents and people throughout the country and internationally are having to make adjustments to cope with the rising costs of food, gas, housing, and other things we need to support ourselves and our families. The Fed has also announced interest rate hikes, so those with adjustable rates loans such as credit cards may see their payments increase. Consider consolidating your high interest credit card debt with a debt consolidation loan with a fixed rate. If you struggle to make your payments or have a poor credit score, credit counseling or debt relief programs are other non-bankruptcy options to manage overwhelming debt.
If you have good credit scores and plenty of income, you have a good chance of qualifying for a debt consolidation loan. If you are struggling to pay your debt payments, lenders will probably be hesitant to provide you with one large low-interest loan to pay off your high-interest debt. Start with your bank or credit union since they may already have a good idea about your situation. There are also online platforms that can shop multiple lenders without a hard inquiry.
If you cannot qualify for a debt consolidation loan, you could look into a credit counseling debt management program. A credit counselor has arrangements to lower your interest rates with most banks that issue credit cards. If you already have low-interest rates, this might not be helpful. These programs work with most credit cards and personal loans, but they do not work with very high interest predatory or payday loans. You must be less than six months delinquent for debts to be eligible. A credit counseling program is a hardship program, so your credit cards will be closed, and obtaining new debt is not allowed while enrolled. However, your payments could be lower, so using credit may not be necessary with the money saved every month. Also, these programs are designed to resolve your debt in about five years or less.
Debt negotiation is also known as debt settlement, is another option to resolve the debt. If you are really struggling to make payments or have already fallen behind in your payments, this is an option to look at as an alternative to bankruptcy. Rather than making payments to your creditors, you save money in a special purpose accounts while your debts are negotiated and settled, usually for much less than you owe. This allows you to have a program payment that could be less than half comped to minimum payments, and you may be able to eliminate all of your enrolled debt in 24 to 48 months, depending on what you can afford on a monthly bases. Since your creditors do not receive monthly payments, your credit will not be good while you are enrolled, but you can rebuild your credit relatively quickly once all debts are resolved. Also, by resolving your debt with whichever method you choose, your debt-to-income ratio will improve, and you can start investing the money instead of throwing it away for interest payment.
If you are looking into debt settlement, it is very important to choose a reputable company with low fees. Many companies based outside of Texas, and even some in Texas, charge high fees while over-promising and under-delivering on their results. Always make sure a company is licensed by the Office of Consumer Credit Commissioner and review their Better Business Bureau rating and complaints. A pattern of complaints will probably mean you need to find another company. See how long they have been in business and if they have an office that you can walk into, even though most post-pandemic people prefer to do business over the phone and through electronic methods.
Affordable Debt Consolidation is a company based in Texas that serves Texans exclusively. They offer an affiliate platform to Texans to shop for the best debt consolidation loans, credit counseling resources, and their Texas Debt Relief program to negotiate substantial reductions of credit card debt and personal loan debt balances. The low fees for this program offered to Texans are 25% to 40% less when compared to most out-of-state or national type debt relief companies. The firm can also help if you face lawsuits from any of your creditors. Go to affordabledebtconsolidation.org or call 800-816-1003 for a free and no-obligation phone or office consultation with a Texas Debt Specialist.