How Does Debt Consolidation WorkDebt Consolidation
Debt consolidation is a broad term that encompasses a diverse array of debt repayment strategies. Some debtors choose to take out home equity consolidation loans, some apply for a low-interest credit card balance transfer, and others recruit the services of a professional debt consolidation company. Regardless of the specific method, however, the overarching goal of all consolidation efforts is to pay off debt quickly while minimizing interest expenses. No Debt Today can help you achieve this goal by referring you to a debt consolidation service that will put financial freedom within your grasp. Read on for more information on how debt consolidation works and why you should choose No Debt Today for your consolidation needs.
Consolidation Strategies Explained
The specifics of how debt consolidation works will depend on the method you select. Bank loans, credit card balance transfers, and professional consolidation services are the three most popular methods of consolidation. We’ve outlined each debt consolidation strategy below.
- Bank loans. Consumers with qualifying credit can obtain a personal loan or a home equity loan for consolidation purposes from their banks or credit unions. They then use the loan funds to pay off their other debts. Typically, bank loans have much lower interest rates than the average credit card, so this debt consolidation method is especially popular with consumers with high-interest credit card debt. With a home equity debt consolidation loan, the debtor borrows against his/her home in order to pay off other debts, which is risky because the borrower’s home is then at stake. When you consolidate with No Debt Today, on the other hand, no additional debt or risk is necessary.
- Balance transfers. Credit card balance transfers are a very temporary debt consolidation strategy. With a balance transfer, the cardholder moves debt from higher-interest cards to a lower-interest card for a fee. Usually, balance transfers come with very low introductory offers that expire after six months to a year. By contrast, if you choose a No Debt Today consolidation company, the new rates your consolidation company arranges for you will last until the balance of your debts is paid off.
- Professional debt consolidation. Professional consolidation is what the affiliates of No Debt Today offer our visitors. A professional debt consolidation service works with consumers and credit card issuers to arrange the most reasonable repayment terms and rates possible. Clients of debt consolidation companies are more likely to have access to manageable interest rates because they have the consolidation service lobbying with creditors on their behalf. No Debt Today can help you find a consolidation service committed to getting you out of debt quickly and inexpensively.
The Professional Debt Consolidation Difference
As you can see, professional debt consolidation works very differently from other methods, which is why No Debt Today offers it to our visitors as the most effective and affordable debt solution. Professional debt consolidation is the only consolidation method that does not require consumers to take on new debt to pay off existing debt. Additionally, using a professional debt consolidation service does not carry the level of risk associated with home equity debt consolidation loans. Finally, professional debt consolidation offers lasting improvements to rates and payments, unlike the balance transfer consolidation method that provides only a temporary respite from outrageous interest rates. Choose No Debt Today to take advantage of these and many other benefits of professional debt consolidation.