If there was ever a great economic climate to get the best debt consolidation loans, this is definitely it. Well, sort of…
Currently, we are enjoying some of the lowest interest rates of all time, which is certainly important when looking to consolidate credit card debt at a lower interest rate.
However, if you are currently shopping around for the best debt consolidation loans, you have no doubt discovered a major problem. The banks aren’t lending money for risky unsecured loans to consumers who have high debt and are struggling with their monthly payments.
Sure, if you have great credit, low debt, and plenty of cash you should have no problem getting a great loan, but for the rest of us, the borrowing window has been slammed shut. Great loans are available mainly to people who don’t really need them and not to those among us who desperately do.
The Best Debt Consolidation Loans Available Might Not Actually Be Loans At All
If you find yourself in a situation where you are struggling to keep up on your payments and cannot find any institution that will lend you money at a great interest rate, a debt settlement strategy is certainly an approach that can be explored as an alternative to a debt consolidation loan.
Ultimately, the main purpose of getting a loan is to pay off your debt, and if a low-interest loan is not available, a debt settlement will likely get your debts paid off faster at a much lower overall cost than a loan would anyway.
Rather than simply lowering your interest rate, a professional debt settlement company has the ability to negotiate with your creditors to potentially reduce your principle credit card balances and create a program to have your debts resolved in just a few short years.
As with anything, there are both pros and cons to using a debt settlement approach. However, if your search for the best debt consolidation loans has resulted in nothing but rejection after rejection, you certainly should take a few minutes to explore a debt settlement option.
Whether or not it is the best solution really depends on the financial circumstances of each individual consumer. For a detailed explanation of how a debt settlement strategy works, contact the professionals at Pacific Debt for a Free Debt Reduction Estimate.