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Q: Does debt consolidation work?
A: There are various programs available and while in general each consumer has a different case, debt consolidation programs do work for many people.
While the length of debt consolidation programs can vary depending on the option you choose, they usually allow people to pay off their debts much faster compared to making monthly minimum payments to a credit card company, which could take up to twenty to thirty years.
Q: What are some benefits of a consolidation loan?
A: Benefits of a consolidation loan can include:
Q: What is an Annual Percentage Rate (APR)?
A: The Annual Percentage Rate (APR) is the cost you pay each year to borrow money, including fees, expressed as a percentage. The APR is a broader measure of the cost to you of borrowing money since it reflects not only the interest rate but also the fees that you have to pay to get the loan. The higher the APR, the more you’ll pay over the life of the loan.
The APR and interest rate are two of the most important measures of the price you pay for borrowing money. The federal Truth in Lending Act (TILA) requires lenders to give you specific disclosures about important terms, including the APR, before you are legally obligated on the loan. Since all lenders must provide the APR, you can use the APR to compare loans. Just make sure that you are comparing APRs to APRs and not to interest rates.
Managing debt can be stressful. It’s even more stressful and overwhelming to think about how you’re going to pay off your debt. Whether it’s credit card debt, loan debt, medical debt or any other debt, it can feel like an impossible path to financial freedom.
With millions of working Americans living paycheck to paycheck there is no better time to explore your debt relief options. So, before you consider filing for bankruptcy or defaulting on your debts take the time to understand all of your debt relief options.