If you are considering a program for credit counseling in Garland, you have probably also received guidance on whether debt consolidation or settlement might work for your situation. While you should make these decisions under the expert guidance of a credit and debt professional, there are a few key takeaways that anyone curious about the process should know.
Before you choose which is right for you, here are a few facts about your options for debt relief in Garland:
Debt Consolidation in Garland Texas
Debt consolidation is a great way to manage debt when you owe a lot of money to various creditors. It can come in the form of a debt consolidation loan, credit counseling program or sometimes people consider debt settlement a form of debt consolidation. Depending on which program you choose, there can numerous benefits, including:
• One single, manageable monthly payment
• Lower interest rates
• Lower total amount owed
• Easier to manage your finances and plan for the future
Debt consolidation in Garland Texas will not typically have a negative impact on your credit. In some instances, it may even have the opposite effect and boost your credit rating. However credit counseling and debt settlement programs do not require a new loan but may have a negative effect on your credit. If you are unable to qualify for a debt consolidation loan, then your credit may already be impacted so getting out of debt should be considered as a number one priority. For more information, be sure to speak to a professional before making any decisions. Research a company first and read any complaints with the Better Business Bureau.
Bankruptcy
Bankruptcy is a serious decision. While it can be a helpful choice for those in need of a last-resort change in their finances, it certainly is not the right option for everyone.
Those who choose bankruptcy are typically looking for a totally fresh start. They are buried under debt that they are unlikely to ever be able to repay on their own and may even be willing to risk the loss of their home, vehicle, or other assets in the process. They also understand that they will have a bankruptcy on their credit report for years afterward and the lifetime public record could affect future employment. If your income or assets are too high, you might have to pay back all of your debt in the bankruptcy. You will need to speak to a qualified bankruptcy attorney if you are considering this option.
If you need help with debt relief in Texas but want to avoid bankruptcy, speak to a financial professional about your other options. No matter where your credit and finances stand, there are options available to you!