The Lone Star state is not alone when it comes to debt. On a per capita (per person) basis, Texas joins the fray at $1,568 as of 2011, placing 44th. Not bad at all, but still some folks feel the need for debt relief in Texas, if only for their credit cards. One way for them to get this is by debt consolidation.
What is Debt Consolidation?
When you find yourself owing so much to so many credit card companies that you’re barely able to make the minimum payments each month, it’s time to sit down and remedy the situation. You can do this by taking out a loan against your home or other asset and paying them off.
Is it a good idea to borrow from Peter to pay Paul? In this case, it is. Credit cards are notorious for their high interest rates, ruinous late charges and myriad of penalties. Paying the minimum for your credit cards is the fastest way to accumulate even more debt without taking one step towards a store. It is estimated that consistently paying just the minimum due on your credit card will keep you in debt for 30 years! And that’s not even adding any more purchases.
Debt consolidation will put paid to that. As an option for debt relief in Texas, it has its merits. Taking out a secured loan is the best, because loans with collateral are considered to have a lower risk of defaulting and thus carries a lower interest rate than credit cards. It is also a convenient way of paying; you only need to pay one creditor instead of the five or more credit card companies you owe money to at the moment.
Other Debt Consolidation Options
However, debt consolidation isn’t always the best option. For one thing, if you don’t have a good credit score, you’ll have a hard time getting a loan. For another, you may not have equity on your home or any asset to use as collateral. Lastly, debt consolidation lumps all your debts together in one basket with no effort to manage it in any way. It’s like throwing good money after bad.
A better way to handle credit card debt may be debt settlement, especially nowadays. The economic crisis has led a lot of people to default on their debts, and creditors are more than willing to negotiate with a debtor who wants to meet their obligations. Debt settlement is usually handled by a company like National Debt Relief, who operates as a go-between you and your creditors.
The level of experience of the debt settlement company goes a long towards getting you the best deal you can possibly get. They have experts who know and can protect your rights as a debtor, and with the training to know which buttons to push to get those rates lowered and fees waived. In most cases, you will not be able to get the same deal on your own.
Before you decide if you want debt consolidation or debt settlement, give a reputable company like National Debt Relief a call. The initial consultation is free, and the counselors will be able to give you a debt analysis that will help you make an informed decision of the right debt relief in Texas you should get.