Pros and Cons of Debt Consolidation
For people who have thousands of dollars in personal debt, it can seem like relief from debt is nothing more than a pipe dream. If you have multiple loan obligations and no clear plan on how to arrange for all of your monthly payments, you may be a good candidate for debt consolidation. What this involves is taking out a loan to pay off your other debt and have the benefit of only focusing on one monthly payment. There are services, such as Freedom Debt Relief Consolidation, that offer to procure a debt consolidation loan for you. They may also be able to speak directly with your creditors to see if there is anything that can be done to reduce your existing debt.
The major thing you need to be aware of with a debt consolidation loan is that it could have a negative impact on your credit score. This is why it is recommended that you only pursue a debt consolidation loan if you are truly unable to keep up with your current monthly payments.
Why Consumers Use Freedom Debt Relief Consolidation
Of all the major debt consolidation companies, Freedom Debt Relief Consolidation is probably the largest. For some consumers, this is an important selling point because there are many debt relief companies that are not legitimate and take cash from customers without providing any real debt relief for them.
Another benefit that Freedom Debt Relief Consolidation is a simple tracking tool that customers can use to see where their total debt status stands. If you have difficulties in sticking with a budget or keeping your financial plans organized, this visual tool can serve as a constant reminder of what you need to do to stay on track with your debt settlement.
If you are curious about what it would cost to use a debt relief service, you can call for a free evaluation from Freedom Debt Relief Consolidation. Use the opportunity during your consultation to find out specifically what this service could do in your situation. This means asking as many questions as possible so that you are clear on your expectations. If you are told to stop making credit card payments, be very cautious of this advice because it can result in your account being sent to a collections agency.
Any reputable debt relief service is aware that they cannot charge you a fee until they actually work to reduce your debt. If you are asked for a down payment before services are rendered, you should run the other way. The way that the debt settlement program at Freedom Debt Relief Consolidation works is that they negotiate a settlement amount with all of your creditors, and you pay monthly deposits into an account that is held for the lump sum payment of your total debt settlement. Keep in mind that it may not be possible to reach a settlement with all of your creditors at once. There also may be some legal risk with this option because it could involve stopping payments on debts that are currently due.