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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.
The programs could take up to three to four years to pay off your debt. In comparison it could take up to twenty to thirty years to pay minimum payments to a credit card company or to a company your debt is owed. Another key item in determining if a debt consolidation program will work for you is the affordability of the monthly payment. For example, the monthly minimum payment billed by the credit card company or the company debt is owned to could be raised at any moment, putting pressure on family incomes. If enrolled in a debt consolidation program, the monthly payment could be lowered and kept at the same amount every month. Therefore, this would be a great payment savings when compared to the other available programs.
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: An APR shows how much a loan will cost you over one year. The APR of a loan not only includes your interest rate, but it can also include any other fees related to that loan. For example: If you borrow $1,000 at 10 percent APR with no loan fees, over the course of one year, you can expect to pay $100 in interest ($100 is 10 percent of $1000.)
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 thousands of working Americans living pay check to pay check 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 debt relief options.