Debt Consolidation: McAllen Residents Have Options Available

August 3, 2022

Some people live in McAllen, Texas year ‘round. Others come to the “City of Palms” to escape frigid winters, enjoying the mild fall and winter weather—and contributing more than $760 million to the local economy. McAllen is also a haven for retirees, considering it ranked 28th on the “Best Places to Retire” list from U.S. News & World Rankings. McAllen also enjoys proximity to both the U.S.-Mexico border and the Gulf of Mexico.

While many McAllen metropolitan area residents experience a high quality of life here, it’s worth noting that the unemployment rate is several percentage points higher than the national average. And while the cost of living is lower than average in this area, McAllen ranks relatively low on the value index—meaning the income-to-housing cost ratio isn’t favorable compared to other metro areas of the same size.

Are you feeling the pinch in McAllen—perhaps even joining the ranks of many other Texans accumulating debt? The first step in achieving debt relief is knowing your options for getting out.

Finding Help with Debt

Do-it-yourself debt relief is an option, but it’s not the only way to get out of debt. It’s especially important for people with debt in the thousands to consider seeking outside help. The exact solution you choose will depend on factors like how much debt you have, what type of debt you’re carrying, your income and more.


Request a free debt evaluation to find out how we could help you:

  • Resolve your debt faster
  • Significantly reduce what you owe
  • Make one low monthly program payment

Cash-Out Refinancing for Homeowners

If you have built equity on your home, you may be able to refinance your mortgage. The amount you owe on your mortgage will go up, but you’ll be able to take the difference out in cash and use it to pay down your more immediate debts.

The key here is paying your mortgage on time until it’s paid in full, so you don’t put your home at risk of foreclosure.

The Pros and Cons of a Debt Management Plan (DMP)

Enrolling in a debt management plan (DMP) as part of credit counseling costs a fee, but it can help McAllen residents figure out the best way to tackle repayment. It involves you making monthly payments to a credit counseling agency which will then pass along these funds to creditors. You’re not diminishing the amount you owe, but you can get lower interest rates.

Learn More About Debt Consolidation in McAllen

Put simply, debt consolidation means McAllen residents can streamline multiple debts into one. How? By taking out a personal or consolidation loan, using it to repay other debts with higher interest rates, then making monthly payments on that loan for as long as it takes to pay it off. It doesn’t reduce the underlying amount owed, but it does help you avoid the stress of juggling multiple debts—and paying sky-high interest rates.

There are a few ways to approach debt consolidation in McAllen. Taking out a secured loan means you’ll need to offer up high-value collateral, like your home or vehicle. This can help you secure better interest rates, but you can lose your assets if you falter on your payments. Unsecured loans do not require collateral, but it’s riskier for the lender so they tend to charge higher rates of interest—which could add up to more than your current debts over time if you don’t calculate the cost vs. benefit.

Bottom line: Debt consolidation for McAllen residents means taking on new debt to pay off old debt. As with any debt relief strategy, there are risks involved.

Debt Resolution: A Chance to Negotiate with Creditors

Another solution for people who owe more $7,500 is debt settlement. Leading programs like Freedom Debt Relief are an option for people who can’t keep up with minimum payments and want to shrink the actual amount they owe. Here’s how it works:

  • Enrollees deposit money monthly into a dedicated account they control. Note: This often occurs in lieu of making payments to creditors, meaning your credit score may decrease and you’ll still experience collection calls.

  • When you’ve saved a certain amount, negotiations begin. Trained negotiators reach out to creditors on your behalf and attempt to reach a “win-win” agreement.

  • If a settlement is reached, it goes to the enrollee for authorization. Then the money from your account goes toward paying off the debt for the agreed-upon amount.

  • Your creditors will report to credit ratings bureaus that your debt has been taken care of.

Get a Free Evaluation from a Certified Debt Consultant Today

McAllen residents, you don’t have to take on your debt alone. Start with a simple phone call to get some free debt advice from a Freedom Debt Relief Specialist. Call us seven days a week at 800-910-0065 .

End Your Debt

Find out how our program could help.

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    One low monthly program deposit
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    Settlements for less than owed
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    Debt could be resolved in 24-48 months