This debt includes all types of debt for student loans, personal loans, and credit card loans. On the flip side, 23% of Americans report they have never been in debt. 

Living debt-free is the dream of every American. However, that is only achievable by getting your finances in check. If you are in debt already, find ways to reduce this debt or pay it off faster. 53% of Americans state that debt reduction is a priority to them. One way is through debt consolidation. 

What is Debt Consolidation?

Debt consolidation involves bringing together multiple debts to become a single debt. This program enables you to make one payment instead of several different payments to creditors or lenders.

Debt Consolidation in Texas helps you achieve debt freedom by lowering interest rates and preventing late payments. Late payments, in particular, could be detrimental to your credit score. Debt consolidation services are more likely available in banks or credit unions. 

However, some private entities also offer these services to individuals. Before beginning the process of debt relief in Texas, it is vital to know the kind of debt consolidation programs available.

Types of Debt Consolidation 

 It does not matter the type of debt you are in. There are numerous options for debt consolidation to choose from. They include:

Debt Consolidation Loan

This is a personal loan that combines multiple loans into a fixed monthly payment. These debt consolidation loans typically have terms ranging from one to ten years. Many of them allow consolidation up to $50,000. 

To make this option more beneficial for you, ensure your new loan has an interest rate lower than the interest of previous loans. 

Student Loan Refinancing 

If your student loan debt is high-interest, refinancing it might help lower interest rates. With student loan refinancing, borrowers can consolidate private and federal student loans. By the end of 2021, 44.7 million people had student loans.

Credit Counseling in Texas is at an all-time high to ensure individuals have an alterative to a debt consolidation as no new loan is needed to lower the credit card payments and have one monthly payment per a month. Debt settlement is a more aggressive approach that can further reduce the cost to eliminate debt and do it in as little as 24 to 48 months without a new loan.

Consolidation loans night improve your credit score in the long run. This is a positive since you will have lowered interest fees and paid off debt in time. The advantage of a debt consolidation loan, credit counseling or debt settlement programs is a reduction of out of pocket costs every month. Contact Affordable Debt Consolidation to speak to a Texas Debt Specialist. 

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