Debt can spiral out of control seemingly overnight. One moment you’re handling the bills just fine, making regular payments, then something happens that interrupts the flow. It may be a job loss, or just a late payment that causes your minimum payment to spike. Whatever has happened, your debt is starting to outstrip your ability to pay it, and you’re looking at your options to get it under control. You don’t want to declare bankruptcy, but Debt Consolidation Philadelphia PA is looking pretty good.
So, just what does debt consolidation Philadelphia PA consist of? The basic idea of debt consolidation is taking all of your debts and rolling it into one loan that creates one payment. You make this payment for a set number of years, and clear the debt when the last payment is made. No more making multiple payments to different creditors anymore.
The major advantages to debt consolidation in Philadelphia PA is the ability to lower your debt load with one fell swoop while preserving your credit rating. It also comes with one, single interest rate that stays the same as long as you make your payments on time. No dealing with fluctuating interest on variable rate credit cards that make it harder to pay off a debt. Instead, you know how much you’re paying at any given time while steadily reducing your debt load.
It’s best to work with a trained credit counselor when seeking to do a debt consolidation. Sure, there’s nothing keeping you from doing it on your own, but you can get valuable advice from the counselor that you would not get otherwise. A credit counselor can go over the information you provide, and help you make decisions on what to consolidate and what to keep aside.
Sometimes, the interest on a credit card is less than the consolidation loan, so it makes sense to not roll that card into the loan. However, the counselor has nothing but your best interest in mind, so follow her advice on what you should ultimately do. It’s her job to make sure you pay off your debt in such a way that leaves money in your pocket every month, and show you how to avoid the same pitfall in the future.