Many El Paso residents are struggling financially due to high rates of unemployment. Since it’s hard to find a steady source of income, residents opt to take credits to cater to their needs. This has led many individuals to accumulate debts that have become difficult to pay. If you require help with debt repayment and management, debt consolidation is a solution. The strategy can help go back to financial freedom and stability. There are also debt consolidation loans and debt negotiation as additional options.
When to Consider Debt Consolidation
Before deciding on debt consolidation in El Paso, you should evaluate yourself. Here are some pointers to help you determine whether to consolidate your debts.
1.You use most of your monthly income to pay debts. Debts shouldn’t take over 20%
2.You can’t make minimum payments for your credit cards and loan payments.
3.Your balances on credit cards are high or close to the limit.
4.Using your savings to pay for bills.
5.Debt collectors have contacted you regarding delinquent accounts.
6.You have to put off unexpected health requirements.
7.You get stressed and worried when you think about money.
If you fit into the described scenarios and other negative debt repayment habits, it’s time to seek credit consolidation services in El Paso using a credit counseling debt management plan. However, you can also apply for a debt consolidation loan if you meet certain requirements.
How to Qualify For Debt Consolidation Loan
Like in Lubbock, debt consolidation companies in El Paso have certain requirements.
1. You must provide proof of a credible and reliable source of income.
2. Credit history- lenders can determine your credit score from your credit report and repayment history, which should be high. With a low credit score, you may only qualify for high-interest loans.
3. Equity- you must provide collateral for leverage depending on the amount you need.
As a resident in El Paso, it’s easy to get debt consolidation services without a new loan if you have enough eligible debt. However, determine whether you need to consolidate your debts or you are just having a normal financial crisis.
Debt Relief with Debt Settlement
A debt negotiation/settlement plan is not a new loan, and it is different from a credit counseling type of debt consolidation. In these programs, you do not pay your creditors a little every month. Your money deposits into a special purpose account and is used to fund negotiated settlements for less than the full balances owed. Credit counseling and debt settlement should not be used if you plan to take on additional debt in the next few years, assuming you can afford more debt. If your plan is to resolve your debt without bankruptcy, these options might work well for you.
Source – https://www.behance.net/gallery/142384547/Affordable-Debt-Consolidation
