Debt Consolidation
Many Americans have become overwhelmed with debt. Monthly statements from student loans, mortgages, car payments, and credit cards fill the mailboxes of millions of consumers everyday. A Debt Consolidation loan can be an effective way to pay off high interest credit card debt and provide debt relief through lower interest rates.
What is Debt Consolidation?
Debt consolidation is a debt management startegy where you combine multiple debts into a single payment. When you use this method, you may be able to simplify your payment schedule and get a lower interest rate than you’re currently paying on your debts. If you owe more than $5,000 in credit card debt spread over many different cards, debt consolidation could make it easier for you to make a single payment each month instead of worrying about organizing your bills and paying each one on time.
PROS
- One predictable monthly payment
- Flexible terms
- No credit impact
CONS
- Need good credit
- No reduction on principal
- Results vary
How to Consolidate Debt?
Debt consolidation is a debt management startegy where you combine multiple debts into a single payment. When you use this method, you may be able to simplify your payment schedule and get a lower interest rate than you’re currently paying on your debts. If you owe more than $5,000 in credit card debt spread over many different cards, debt consolidation could make it easier for you to make a single payment each month instead of worrying about organizing your bills and paying each one on time.
Balance Transfer Cards
There are a variety of programs available that can assist you, but choosing wisely between them can be tricky. For example, some companies offer “Debt consolidation loans”. But these aren’t always as good as they look. Some of them have terms that are only favorable in the beginning. Others don’t have sufficient paydown periods, and, for some people, a new loan isn’t suitable if they don’t have the income to justify such a loan. Our experts help you decide. Debt consolidation loan is one form of refinancing one loan to pay off many others. It is practiced and used for secure and unsecured debt. Milestone’s account representatives help consumers assess, apply for and achieve loans at low rates they never thought were achievable. We also help you understand the terms of these loans so that you can make an informed decision as to whether it’s the right loan or method for you!
Debt Consolidation Loans
There are a variety of programs available that can assist you, but choosing wisely between them can be tricky. For example, some companies offer “Debt consolidation loans”. But these aren’t always as good as they look. Some of them have terms that are only favorable in the beginning. Others don’t have sufficient paydown periods, and, for some people, a new loan isn’t suitable if they don’t have the income to justify such a loan. Our experts help you decide. Debt consolidation loan is one form of refinancing one loan to pay off many others. It is practiced and used for secure and unsecured debt. Milestone’s account representatives help consumers assess, apply for and achieve loans at low rates they never thought were achievable. We also help you understand the terms of these loans so that you can make an informed decision as to whether it’s the right loan or method for you!
Cash-Out Refinance
Another debt management mechanism is Cash-Out Refinance loans. In layman’s terms all refinancing of debt is “Cash-Out”, when the funds are used for anything other than repaying an outstanding loan. At Milestone we employ consumers to explore all debt management mechanisms available. First, by using our financial algorithms we look to see if consumers have equity that could potentially be liquidated. If the option suits the end user then we at Milestone help consumers in taking the next step towards reducing all forms of debt.