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What is Debt Consolidation?
Debt consolidation is the process of combining all of your debt into one debt payment. Debt consolidation focuses on solving issues with high-interest rates, high monthly bills or just too much debt.
Here are three ways to combine your debt:
- Credit card consolidation
- Take out a consolidation loan
- Allow Mid America to handle your consolidation
1. Credit Card Consolidation
Many credit card companies offer incentives for transferring your credit card balances from other credit card companies to a new card with them. These incentives typically include a 0% interest rate for a limited period of time and no transfer fees. While most of these offers are really good during their introductory period, there may be high rates or fees that begin once the introductory period is over.
Your goal should be to pay your credit card balance off before the introductory period has expired. If you can’t pay off your balance then make sure that the card you are transferring to has a lower interest rate and lower fees than the credit cards you are transferring the balances from. Otherwise, you may find yourself in worse financial shape than you were before.
2. Debt Consolidation Loans
Acquiring a loan to pay off your outstanding debt is often done because the interest rates are lower and the overall payment terms are better than the terms for the outstanding debt.
Home equity loans are often used for debt consolidation purposes but it’s important to understand the risk that comes with it. Home equity loans are secured loans – if you don’t make your payments you could potentially lose your home.
3. Debt Consolidation through Mid America
To find out if debt consolidation is right for you, contact the Mid America Debt Relief Team to discuss your unique financial situation. The Team can evaluate your debt situation and advise you on which debt relief program will provide you the quickest, and safest path to becoming debt-free.