For consumers unfamiliar with debt consolidation, the first questions are usually, “does it work?” and “how quickly can I actually get debt relief?” Debt consolidation is growing in popularity, and as it catches on with more and more American families as a mainstream approach to debt management, more people have questions about its effectiveness.
The reason debt consolidation from companies like Credit Guard of America has become so popular is because it is a low-risk, high-reward service that provides a win for everyone involved. Individuals in debt win because they get lower interest rates and faster debt relief; the debt consolidation company wins because it charges a small fee for its service; lenders win because they reduce their risk by allowing the consolidation providers to assume the risk on their behalf.
Is Debt Consolidation For You?
Debt consolidation is designed for individuals and families who are unable to pay their debts under their current circumstances and within a reasonable amount of time. If you are barely making minimum payments on your debt, consolidation may help you lower your interest rates so you can afford to pay off more of your debts each month. This helps you pay off debts sooner, so you can get back to saving more of your money for major purchases or retirement.
How Quickly Does Debt Consolidation Work?
Debt consolidation achieves desired results at different rates for different people, depending on how much they are willing to pay per month, the level of interest rate reduction and the amount of debt being served. Some have reported paying off all of their credit card and other unsecured debt as much as six times sooner than they would have if they’d continued making minimum payments.
People often trade a small fee each month for lower interest rates. But over the course of the loan, some save thousands, which more than covers the money spent paying for consolidation.
In other words, while consolidation isn’t an immediate silver bullet, it can be part of a proactive approach to achieve debt relief. This is why it is catching on with so many American families. Most people know enough not to fall for scams or loan offers, and debt consolidation is neither. It may be wise to consult with a credit counselor or other financial professional before beginning debt consolidation.