Debt is a terrible thing to live with and many times people dig themselves such a large hole that they are not able to dig out by themselves. In these instances debt consolidation services can be a great tool to help get your debt under control.
Debt Consolidation vs Debt Settlement
Debt consolidation is a way of taking all of your debts and paying the off with a new loan. That is vastly different from a debt settlement, which is where a person lets their current debts continue into default and then settles with the creditor for a fraction of the ultimate debt owed. Which one is right for you completely depends on your situation and that is why services like Rescue One Financial of Irvine are particularly interesting because they can help you with either option.
While there are countless learning opportunities and resources, most debt-ridden people still have no concrete plan to change their fates. This isn’t because they’re lazy. Debt has a way of sucking away your time, happiness, and attention, until you don’t have any personal resources left over to improve your situation. It’s a terrible thing that many people live with every day, but it is not something that has to go on forever. Rescue One has a lot of resources, some of which we’ll cover here today.
How Debt Consolidation Works with Rescue One
Rescue One offers debt consolidation services. For those unfamiliar with debt consolidation, it’s an option that might not be immediately obvious, but is nonetheless a very powerful tool at getting your financial life back under control. Debt consolidation, as practiced by Rescue One, works like this: Let’s say you are a consumer with $27,000 in debt through six different credit cards. You are confused and straining to maintain payments. This is particularly dizzying because each credit card has a different monthly minimum, as well as different rates at which the interest and fees accrue. You might be paying 25% per year for one credit card, and only 7% a year for your remaining student debt. But with so much going on in your financial life, you find yourself missing payments, or letting expensive debt drag out for too long.
Debt consolidation is something of an intervention. Companies like Rescue One understand how hard it is to shoot at all of the moving targets of consumer debt. Rather than insisting that you keep following your present payment strategy, Rescue One gives you all the money you need to pay off all of your debts at one time. “Give” isn’t the right word. This is still very much a loan, just like the loans you took out with your various creditors that got yourself in this mess in the first place. There is, however, one important difference.
Rescue One’s loan is WAY less expensive. Rather than paying high and perhaps variable rates to a bunch of different companies, with Rescue One, you’ll only be paying one payment, at one fixed rate, for the duration of your loan. You’ll also be paying a MUCH lower rate of interest than you would for most of the credit you had with your previous creditors. Rates start at just 5.9% interest and go up based on your credit. This is why working directly with representatives from a solid company is such a big deal. If you are not getting good advice you could end up in an even worse situation that you were before.
There are no quick ways out of debt and if a company is promising to get you out of the debt hole that you dug quickly then you should be very suspicious of their help.
Bottom Line
Consolidating your debt into one debt account, with one affordable interest rate, is an act of mercy on the part of certain financial institutions, one that helps people get back onto their feet and into good financial standing.
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