Debt Consolidation: What Is it?

The easiest way to describe debt consolidation is simply combining multiple debts into one debt – usually through a loan. 

Some people will try to consolidate credit cards with another credit card.

This approach usually just moves high interest debt around and puts you in a deeper debt hole making it even harder to get out of debt in the long run.

*** SPECIAL NOTE *** – If your credit cards, personal loans, or medical debts have become unmanageable and you owe over $20,000… then go here for debt relief. We can help!

Why Consolidate Your Debt?

The purpose of consolidation is to get a lower interest rate so you can pay off your debts faster and for less money.

Most people start looking for debt consolidation loans when they find themselves only being able to make minimum payments on their cards. This is what’s usually referred to as the minimum payment debt trap. 

Credit card minimum payments usually consist of mostly interest.

Meaning your money really isn’t paying off much of the principal balance, it mostly goes towards interest. This means it could take years or even decades to get out of debt making interest-only payments. 

For debt consolidation to be effective as a debt relief strategy, you should close or stop using all credit cards while paying off your loan. Continuing to use credit cards after getting a loan will only worsen your debt situation. 

By stopping using credit cards and cutting living costs to put more money towards paying off the loan is the best path forward to finally living debt free. 

At Americor, we understand the unique financial challenges people are facing today.

As America’s trusted source for debt relief solutions, we aim to empower you with financial knowledge that can lead to informed decisions, whether it’s about savings, investments, or managing debt.

If your debt has become unmanageable and you have difficulty making your debt payments each month, then you should consider a FREE consultation call with one of our certified Debt Consultants, who can provide personalized debt relief advice tailored to your specific needs.

By taking proactive steps today, you can put an end to your financial stress and work towards a brighter financial future. 

Remember, there is always hope for debt relief, and our team of experienced professionals are ready to guide you on your journey to regaining control of your finances.

For more information on Americor’s debt relief services, contact us today to see how we can help you eliminate your debts, and get on the fast-track to becoming completely debt-free!