Debt Consolidation or Debt Relief can help Texas Residents deal with overwhelming inflation.
Many Texans struggle to make ends meet due to the increasing costs of nearly everything we buy. Many have relied on credit cards to help cover these costs and are further burdened with rising interest rates. Whether you are not seeing your debt balances go down, struggling to make minimum payments, or falling behind, there are debt consolidation and debt relief options to consider.
The first option is a debt consolidation loan if your credit score is high and you are managing to maintain a good debt-to-income ratio. While this doesn’t reduce your debt balances, a loan used to pay off credit card debt may come with a lower fixed rate. A debt consolidation loan will often lower your monthly cost to pay the debt, and you won’t have to worry about rising interest rates. Your bank or credit already knows you and could be familiar with your situation, so start by applying there first. If your bank denies the loan, you could shop on platforms that shop multiple lenders with one application. There is no hard inquiry with these platforms to receive offers, but if you accept an offer, the lender will pull a hard inquiry.
If your debt-to-income ratio or credit score prevents you from obtaining a debt consolidation loan, you can also consolidate your debt and lower credit card debt interest rates without a new loan. This is done by using a credit counseling or debt management plan. You will also benefit from only making one payment per month for all your enrolled debt. The downsides to consider are that your accounts will be closed and may impact your credit score, depending on where you start. This may not be of concern because you may not be able to afford new debt in the first place until you resolve your existing debt.
If you need the lowest payment possible and need to get out of debt in the shortest time possible without bankruptcy, a debt negotiation plan is another option. These hardship programs are designed for those struggling to make their payments or who have already fallen behind. If you have fallen behind, the damage to your credit may have already been done. The program will negatively impact your credit score if you have not fallen behind. The good news is that you may be able to have a program payment that is less than half compared to making minimum payments, and the programs are often designed to last an estimated 24 to 48 months. This means that upon completing the program, you can rebuild your credit relatively quickly, and your debt-to-income ratio will be dramatically improved because you will no longer be carrying the debt. Be careful with the company you select to do this because your success and the quality of service you receive could vary greatly between companies that offer this service.
Bankruptcy is another option most people are aware of, and there are two types of bankruptcies. Chapter 7 is liquidation. If you have any non-exempt assets, you will likely need to sell them and use the proceeds to pay your debt, and then the remaining balance may be discharged. There are also income limitations that prevent some people from using this route. A chapter 13 bankruptcy is a repayment plan and could cost more or less than a debt negotiation program, depending on what the bankruptcy court determines. Anyone considering bankruptcy should speak to a qualified attorney for legal advice, and your attorney will be able to discuss your qualifications.
Debt Redemption Texas Debt Relief is a 100% veteran-owned debt management company in Texas that exclusively services Texas residents. The company has been here serving Texans for twenty years and is rated A+ and Accredited by the Better Business Bureau. The options include a platform to shop for the best debt consolidation loan, credit counseling resources, and a debt negotiation program. Because the company only serves Texans, they are able to offer debt negotiation program fees at typically 40% less than most out-of-state competitors, which can be massive savings. The company also works with a Texas bankruptcy law firm when anyone would like to compare bankruptcy to Debt Redemption’s non-bankruptcy options. Call 800-970-4060 or visit https://debtredemption.com/debt-relief/san-antonio for a FREE and no-obligation consultation with a local Debt Specialist.
Debt Redemption Texas Debt Relief
San Antonio Office: 210-503-1099
40 NE Loop 410, Suite 340
San Antonio, Texas 78216