Debt Consolidation: Sacramento Residents Have Options Available
The fastest growing major city in California, Sacramento is the state’s capital and a notable financial center for the entire country. Despite its largesse however, if you’re a Sacramento-area resident struggling with debt you’re not alone. What’s more, you can find professional guidance toward the best debt consolidation solution for the problem.
Debt Consolidation for Sacramento Residents
Are you grappling with more than $10,000 in debt in the Sacramento area? If so, exploring a consolidation loan may be your best move. As the name implies, debt consolidation for Sacramento residents combines all of your debt into a single easy-to-manage payment. Better yet, the consolidation loan is usually less than the total amount you were paying to cover your bills individually.Consolidation vehicles include:
- Credit card balance transfers
- Debt consolidation loans
- Debt Management Plans (DMP)
- Equity Loans
- Debt settlement
Credit Card Balance Transfers
Balance transfers can be a great option when chosen carefully. You can move all of your credit card debt to a low-interest, or no-interest credit card from a different issuer.However, you must do the following to make sure you benefit:
- Choose a card with no fees
- Determine how long the special offer lasts
- If you can’t get away from fess, be certain you’ll still come out ahead
- Pay off the balance before the deal expires
- Keep the old accounts open, but don’t use them again
Debt Consolidation Loans in Sacramento
These work in much the same fashion as balance transfers, in that you’ll take out a new loan to pay off your existing debts, thereby combining all of your monthly payments into one—at a lower interest rate. Given your credit score will determine that rate, this is only a good option if your score is still pretty high.
Credit Counseling & Debt Management Programs
Sacramento-area residents who see financial storm clouds brewing, might choose to take advantage of a credit counseling program to weather the storm. In this instance, a credit counselor will take stock of your situation and recommend your best course of action. Depending upon the nature of your circumstances, they might also recommend debt management.
If this is the case, the counselor will arrange an affordable payment plan for you based upon lower interest rates they’ll negotiate with your creditors on your behalf. In exchange for the reduction, they will agree to make sure all of your obligations are met.
To accomplish this, they will require you make one payment each month to the counselor, who then pays your creditors. Your payments will be less, thanks to the interest rate reduction and you’ll only have one interest rate and one monthly payment to cover.
Still, there are a few need-to-knows:
- You’ll pay the counselor to manage your program.
- Debt management can impact your credit score negatively.
- You’ll have trouble getting credit for a while.
If you owe less on your home than its current value, a home equity loan might be a good solution. You can borrow against your property and use the money to pay off your high-interest debts. This will leave you with one payment each month, at a much lower interest rate. As good as this sounds, you should only go this route if you know you can repay the loan. Otherwise, you could lose your home to foreclosure.
If none of those options look workable for you, there are companies capable of negotiating a lower repayment amount on your behalf to help you settle your debt for less money.
The debt settlement process is similar to credit counseling in that you contribute to a payment fund, from which your creditors will be paid. However, rather than negotiating an interest rate reduction, debt settlement firms work to get a portion of the debt absolved altogether. When you pay off the negotiated amount, the debt will be forgiven, although your credit rating will be lower for a while.
Here, you must be careful to choose a company respected by the region’s major lending institutions. Freedom Debt Relief has helped thousands of people all over the country get their finances back on track in this fashion.
Ultimately, each of these debt consolidation options has its pros and cons. However, the good news is you do have options. Considering each one against your specific circumstances will help you make the best possible choice.
For more advice on the debt solutions available to Sacramento residents, or to learn specifically about Freedom Debt Relief, call 800-910-0065 today. You’ll find a competent professional who is willing and ready to help you!
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- One low monthly program deposit
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