Debt consolidation pros and cons - Americor

Debt consolidation pros and cons

There are a few proven methods to handle your debt, whether it’s immediately or over an indefinite period of time. Regardless of the practice, all debt reduction methods are formed to rid you of your debt. Americor Financial Services specializes in debt settlement to reduce your debt. But debt settlement services aren’t for everyone.

 

Is a Debt Consolidation Loan Right for Me?

Debt consolidation is the process of taking out a loan to pay your debt off in reasonable monthly installments. The goal of creditors is to get their money back any way they can, so they usually will offer you a flexible payment plan. But you need to ask yourself, “Is a debt consolidation loan right for me?” There are both positives and negatives to consider. So before diving in, it’s important to give careful consideration to the debt consolidation pros and cons.

 

Debt Consolidation Pros and Cons 

Here are some of the positive aspects of debt consolidation.

  • Your debt crisis will become manageable. If you have multiple streams of debt, you can pay it off in one inexpensive payment.
  • You usually get to decide how much you can pay and for how long. In this approach, you have leverage because your creditors want their money.
  • Your debt will become virtually invisible. Since you get to decide how much to pay, your route to financial freedom becomes easier.

 

While these are some of the benefits to debt consolidation, there are a few negatives:

  • Your debt doesn’t go away. You’re still obligated to make every payment or face the consequences.
  • It can sometimes take decades to pay off your debt, especially if you owe thousands of dollars.
  • The pressure and incentive to pay off your debt goes away. Creditors and debt companies will constantly harass you to get what’s theirs. Also, you still have to pay back the consolidation loan.

 

Am I Eligible for a Debt Consolidation Loan?

Now that you have a better understanding of the pros and cons to debt consolidation, your next question is probably, “Am I eligible for a debt consolidation loan? To find out, contact Americor Financial Services for more information.