There are a number of choices available to consumers looking to find debt relief in Albuquerque. In addition to debt consolidation, several options exist for debt settlement and relief from Albuquerque bankruptcy. A qualified debt relief specialist will evaluate your situation and help you determine which option best suits your needs. Debt consolidation is often the most affordable and fastest path to financial freedom for many consumers. However, it does have its disadvantages.
Consolidation loans require borrowers to refinance their homes, which can result in foreclosure. Consumers facing foreclosure can also face the loss of their homes if they file for bankruptcy after using debt consolidation. For this reason, debt consolidation is often used as a last resort or a strategy to eliminate a debt that has become uncontrollable. Debt settlement and debt relief in Albuquerque provide debt consolidation and settlement services to consumers who qualify. Consumers who use debt consolidation to eliminate unsecured debt will have their accounts in order and will no longer be contacted by creditors or debt collectors. In some instances, the consumer may not owe creditors any money at all; however, they will still owe the money to the debt consolidation company.
Bankruptcy protects the credit of the individual filing bankruptcy, but it destroys personal credit ratings and creates a black mark on the person’s credit report. Furthermore, bankruptcy is a lengthy and complicated process that many debtors cannot afford to undergo. On top of this, once a consumer has declared bankruptcy, they are unable to obtain credit or loans for at least three years. Although some debts cannot be eliminated through bankruptcy, debt consolidation services may allow debtors to consolidate their unsecured debts into one monthly payment that is more affordable. Additionally, debt consolidation services may also help consumers negotiate with creditors to reduce their monthly payments and interest rates.
Many debt consolidation companies offer debt negotiation programs that allow debtors to pay off their debts every month, without having to file bankruptcy. Debt negotiation is similar to debt settlement, but instead of paying a lump sum amount, the debt consolidation company allows the consumer to pay off each creditor individually. This allows the consumer to effectively pay off their debt over time and eliminates late fees and penalties. This method is good for people who cannot afford to file bankruptcy but would prefer to avoid the long-term negative effects of doing so.
For debt consolidation to be effective, the debt must be unsecured debt; therefore, this debt cannot be included in an inherited debt, such as a mortgage. The only exception to this rule is a debt secured by an asset, such as car insurance. However, a debt secured by an asset can usually be bundled with unsecured debt to create a debt consolidation loan. Most debt consolidation loans require a higher interest rate than other debt loans, but this is typically justified because the debt consolidation loan is a lower interest rate than the debts it replaces.
Many consumers are wary of debt consolidation companies. These companies are often referred to as debt consolidation scams or “ambulance chasers.” The truth is that there are legitimate debt consolidation companies that will assist you with negotiating your bills with your creditors, and can often reduce your monthly payments to an affordable amount. When you find a debt consolidation company, make sure you research all of your options thoroughly, before signing any contracts. Some debt consolidation companies are only out to make a profit, and may charge exorbitant fees for their services. Do your research and take advantage of a free debt consolidation quote.