If you are looking for help with you debts but are unsure where to look for help, then Illinois debt consolidation might have the solution for you. It can be a way of taking back control of your finances, making debt easier to handle, getting some of the fees removed or just to stop the creditor’s phone you demanding money that you haven’t got.
Illinois Debt Consolidation: The Options
The options that are opened to you are to sort the situation yourself or turn to a debt consolidation company. It is possible for you to work out all the money that you owe and to apply for a consolidation loan, the money that you receive will then be used to pay of the creditors. Or alternatively you find a company that will do the work for you.
You will be able to choose from 2 types of loan, a secured option, this means that if you default on a payment then the item you secured the loan against, usually your home, can become the property of the company that leant you the money. This type of loan is usually cheaper in the amount of interest that you will be charged. The other option is an unsecured loan, if you default on the loan they will not take ownership of an item like your home, but you will pay higher interest rates for this type of loan.
If you decide to sort out your own debt then you will not have to pay a company on top of the money that you already owe to your creditors.
Illinois Debt consolidation Companies
If you are looking for an Illinois debt consolidation company then you will need to consider a company that has an accreditation from the BBB, better business bureau. These companies have agreed to follow a set of principles that will safe guard you from companies that do not have your best interests at heart.
They will look at the situation that you are in at the present time and put forward their plan of how they can help you. Once you agree to the plan the company works on your behave and contacts your creditors to negotiate lower payments. This plan will be long term, but most companies look to completely eradicate the debt within 6 years. You will be required to pay the company an amount at the beginning of the plan and then every month you will pay them an agreed amount this will be split to pay your creditors every month and a proportion to the debt management company too, they do not work for free.
Loans That Can Be Consolidated
- Any credit card debt.
- Any pay day loans that you might have.
- Any unsecured personal loans that you have taken out.
- Any student debt that you have accrued.
If you are thinking about getting help an Illinois debt consolidation could be the answer but it will have an effect on your credit score. If you work by yourself and take out a debt consolidation loan then you will find that your credit score goes down but this is because you have taken out a loan. If you work with a debt consolidation company then your credit score will go further down because this will have an effect on your credit rating too. But they are both temporary measures, the more that you pay off your debts the better that your score will become.
Avoid While In Debt Management Programme
It is best to avoid certain situations that can have a negative effect on what you are trying to achieve.
- Don’t close a credit card when you have paid it off, don’t use it either.
- Don’t transfer any balances to new cards, no matter what the offer is.
- Don’t open or apply for a new credit card.
- Don’t spend more than the budget that you have set up.
These can do more harm to your credit report and it will not help what you are trying to achieve with the help and support of the debt consolidation company.
Benefits of Illinois Debt Consolidation
There are some really positive benefits if you are considering going down the route of Illinois debt consolidation and they can be very positive.
It is possible to make your life and the debts that you have to be simpler than you ever imagined they could become. The interest rates that you pay will also be reduced; this will mean that you monthly payments will be lower and more manageable. But it might be over a longer period of time that you are repaying the debt. There is some possibility that you might find that you are eligible for some tax deductions and this is always a welcomed possibility.
You have more than one choice and that is to seek help or go alone with debt consolidation or you take further advice and look at the possibility of bankruptcy.