Exploring Credit Repair Debt Consolidation
Exploring Credit Repair Debt Consolidation
If you are an individual who has significant debts from a variety of sources such as credit cards, car payments, personal loans, etc then you are probably looking for a way out of the problem. Of course, the best way to get out of the situation is to pay all the debts off. Since this is not an option to many people because they either do not have the liquid cash available nor do they have the resources to liquidate assets to pay off the debt, they must seek the next best course of action which is to explore options related to credit repair debt consolidation.
What is Credit Repair Debt Consolidation
When it comes to credit repair debt consolidation, this does not mean that the debt will be eliminated. Consolidation by no means refers to the notion that the debts have been paid. Sadly, may advertisements out there for credit repair debt consolidation put forth the false notion that consolidation means "paid".
Of course, this is beyond absurd and more sensible minded people will see through such salacious advertising and understand that the goal of debt consolidation so save money in terms of interest payments as well as provided more free capital in a person's pocket by limiting the volume of payments that one must make every month. In order to understand how this works, one must look at these two phases individually.
Lowering Interest Payments with Credit Repair Debt Consolidation
If you have three credit cards that have an average interest rate of 22% and you are able to consolidate these credit cards to a single loan that has an interest rate of 15%, then you are saving 7% on interest payments. Needless to say, this can prove to be a significant amount of money saved over the long term. To pay out extra money on interest rates that could be reduced through credit repair debt consolidation is ridiculous. Instead, seek the path of less interest and avoid the excess financial drain that such interest payments would cause.
Having More Monthly Cash Available
If you have three credit cards that have a minimum payment of $100 a month each you are paying $300 a month out of pocket. If you have a consolidated loan and pay $250 a month you will have an extra $50 a month in your pocket. It is simple as that! That extra money can be put forth to other expenses and not paid to cover the cost of a multitude of monthly payments from a variety of sources.