Many people are experiencing the pain of paying multiple creditors every month. Repaying outstanding loans can become an enormous emotional and financial burden. If you want to pay back your high-interest loans all at once you can opt for a debt consolidation loan. This is a process of consolidating all your debts into one a single loan. Debt consolidation is an effective way to avoid bankruptcyand sets you on your road to financial freedom.
You can contact a bank or union and open up a debt consolidation loan account. It will help you to pay off debts in exchange for one lower interest loan. But you need a good or excellent credit score to qualify.
This type of loan can be a good choice to pay off credit cards, personal loans and other debts with high-interest rates. When you opt for debt consolidation loan to pay off all the debts you owe you will have only one monthly payment instead of multiple payments. This type of loan will lower monthly interest rates and you will be able to pay back your debts more conviently, or extend the time you have to pay back your loans. It can have a positive effect on your credit score.
It is important to inform you that some loans require collateral. This means that you agree to secure your loan by an asset you own. This can be your home or car (or something of high value). If you fail to repay your loan you can forfeit the asset you chose to use as collateral. This no doubt gives you a better interest rate because the more risk for you is less risk for the lender.
Everyone is not homeowner, so if you don’t have an asset you own, then you can secure an unsecured loan. But, loans that don’t require collateral have typically higher rates of interest as the lender is taking on more risk.
Debt consolidation is a wonderful option, but you need to consider the total cost of your consolidated loan. The interest rate may be lower but you could land up paying higher interest rate over the course of the loan.
Debt consolidation is not suitable for everyone. It may not be the right choice if you don’t have a large amount of loan, i.e., if your loan does not exceed $10,000.
OORAA debt solution professionals are always there to help you find a program that is just right for you. To know how our debt relief program compares to debt consolidation and determine which is best for you, contact our experienced Debt Consultants today at – 888 888 9914
Which is the best strategy for you? Find out now.
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Ooora Debt Relief helps its customers to understand the different choices they have to get rid of unsecured debt. Based on the conservative estimates clients that enroll in our Debt Management Plan and make all their payments on time generally experience a 50% reduction of their enrolled balance before our fees and about 30% reduction after payment of fees over12-48 months. Individual results may vary and are dependent on factors such as the total amount of debt, creditors’ cooperation, ability to save and successful completion of the program. Ooraa Debt Relief does not guarantee percentage reductions or the specific period in which the consumers’ debt will be resolved. We do not charge any upfront fees until a settlement that you have approved has been negotiated and at least one payment has been paid towards it. We do not provide tax, bankruptcy, legal or investment advice. Depending on your state we may be able to suggest a local tax professional or a bankruptcy attorney. Our program is not available in all the states and fees may also vary from state to state. Please consult a tax professional to consider the tax consequences of debt settlement.
The simulated savings calculator on our website is for illustration purposes only and may not always be accurate since they vary by each client’s unique situation. You should get a specific estimate from our company office for an accurate assessment before you decide to enroll in our program.
Please read and understand the contract terms and how the use of these services can adversely impact your credit before commitment.