If credit card bills have piled up, collection agencies are calling frequently and you feel overwhelmed by the amount of debt you have accumulated, you may want to consult an organization that offers debt consolidation specifically for Texas residents to take advantage of. Debt consolidation has many advantages and a few disadvantages. Weighing your personal needs and your specific financial situation will assist you in determining whether you need to contact an organization that offers debt consolidation Texas residents can use. Pacific Debt is a reputable company with over fourteen years of experience in consumer related services, including debt settlement.
Benefits of Debt Consolidation for Texas Residents
First off, debt consolidation helps streamline your payments. Debt consolidation Texas involves putting all of your existing debts into one source, usually in the form of a loan. Instead of needing to remember when each credit card bill is due and what the minimum payment is, you can write one check to the debt consolidation company. You may be able to decrease your interest rate so more of your payment goes to the principal of the debt that you owe. This option also allows you to stay in good standing with each of your credit card companies. You do not have to cancel your accounts in order to qualify for debt consolidation, so your credit cards are available to use in case of an emergency.
Detriments of Debt Consolidation
Debt consolidation often requires that you secure the debt with your home or another asset. If you get behind on your payments, the debt consolidation company can take your asset in order to satisfy the debt. If you do not secure your loan, you may actually wind up paying a larger interest interest rate than your credit cards offered. This will increase the total amount that you pay over the lifetime of the debt. Having zero balances on your credit cards may influence you to accumulate more debt on the credit cards. This will cause you to have a large consolidation loan payment, as well as multiple credit card payments that can place you in a precarious financial position.
If you do not want to tie up your assets by securing a consolidation loan, other alternatives are available. Debt settlement is an option for many consumers. Debt settlement allows consumers to have their debts discharged by their creditors at a reduced balance. Pacific Debt often negotiates rates for their clients that allow them to pay off their debt for significantly less than the total principal amount that is owed on the debt. This alternative allows consumers to have debt paid off, rather than continuing to make payments on the debt for several years. Credit counseling is also available as an alternative.
If you are looking for a company that provides consumer assistance with debt settlement, credit counseling or debt consolidation, Texas has many qualified companies that you can contact. Pacific Debt is willing to assist you with managing your finances and is licensed to provide debt settlement services.