Debt Consolidation Plan
Taking control of your debt
If your debt has gotten out of control, you’re not alone. Debt management is a challenge facing many people, and in seeking a solution, you are already taking positive steps to Live Smarter.
What is a Debt Consolidation Plan?
A debt consolidation plan involves taking several debts, such as credit cards, medical bills, personal loans, and more, and combining them into fewer bills, preferably one, at a lower overall interest rate. So instead of sending payments to multiple creditors each month, you can make one payment to cover everything. This generally results in lower total monthly payments, and can help you avoid late payment fees and other penalties, since the billing and financial tracking is easier to handle.
The goal? Helping you get out of debt sooner, lowering your interest rates and monthly payments, and protecting your credit score.
How Does a Debt Consolidation Plan Work?
First, we determine if your financial situation warrants debt consolidation. Factors we consider include your income, your credit standing, how much total money you owe, how many loans or debt sources you have, and the terms of those debts.
There are several debt consolidation plan options, depending on each individual’s situation. They can include credit card consolidation, a personal loan, a home equity line of credit, a home equity loan, or refinancing, among others. Paying off the debt would be combined with more disciplined budgeting (to avoid more debt), coupled with a savings plan.
Any of these solutions would ideally result in a smaller monthly payment, so the debt can be paid off more easily. While this may create a longer repayment period, the total payments could be less.
Credit Card Debt
If you have several credit card balances you’re struggling to pay off, consolidating your credit card debt could be a solution. Your options can include taking out a loan to pay down your cards, or paying your balances with a new card that has a lower rate with a balance transfer. Whichever approach you take, you’ll have only one monthly payment to make. We can help you determine if you are a good candidate for credit card debt consolidation.
Credit Card Debt: Learn More
Medical Bills Debt
Medical expenses, from deductibles to directly billed medical costs, surgery, hospitalization, and home care, can grow beyond your means to pay. Medical debt accounts for a significant number of personal bankruptcies in the U.S., even among those with health insurance. If you have medical debt, we can determine how to assist you. Depending on your specific financial situation, options may include a Health Improvement Loan, a lower-rate credit card, a Home Equity Loan or Line of Credit, or a Personal Loan. We can evaluate your expenses, budget, and financial standing, and help you determine the best approach.
Medical Bills Debt: Learn More
What Will I Need?
Gather all the bills on which you are carrying debt, including credit cards, medical expenses, utilities, phone bills, and vehicle debts. Determine your regular monthly expenses like mortgage or rent, food, and transportation. With all your relevant financial information, we can work with you to see if a debt consolidation plan is right for you.
Live Smarter Going Forward
If you’re a good candidate for a debt consolidation plan, we'll work toward getting your debts paid down, which can improve your credit. This can also help your ability to move forward with a sound savings plan.
If you have any questions, we are here to help. Get started with a Debt Consolidation Plan or call 315-735-8571 to talk about your options.