Benefits of consolidating credit card debts
If you decide to consolidate your credit card debt with a for-profit debt consolidation company, you may have to apply for an unsecured loan, in which you do not have to put up collateral.
In this case, you will be signing your name to an unsecured loan to payoff your other unsecured debt.
If you decide to sign up for our credit card debt consolidation services, you will get these immediate benefits: is a 501(c)(3) nonprofit organization founded in 1974.
Our mission is simple, yet vital: our people improve the lives and financial well-being of individuals and families by providing quality financial education and counseling services.
You will also be denied if you apply for credit, but that is because you have just agreed not to use credit.
As soon as you complete your DMP or decide to leave your DMP (at any time), you are again eligible for new credit.
Essentially, you are replacing many loans with one, hopefully at an improved interest rate and monthly payment amount.
The amount of trusted companies offering debt consolidation loan programs without collateral are scarce.
How much money can you afford to put toward it each month?
Also, determine if you are paying off a secured or unsecured debt.
If you qualify, you get to pay one monthly payment to your credit card companies and you benefit from the incentives they may offer you without putting your home or other assets at risk.
Talk to a Credit Counselor ›› When you begin a Debt Management Plan (DMP) with credit.org, your credit lines are closed and you agree not to use credit while you are on the plan. In the short term your credit score can potentially go down.