Debt Consolidation

Debt Consolidation Loans

A Debt Consolidation Loan is one of the most common solutions people think of when they fall into financial difficulties. This can be a problem for some, because some people who obtain a debt consolidation loan find themselves in much deeper financial trouble than they were in to begin with. A debt consolidation loan will not reduce the amount you owe. You will still have to pay back 100% of the loan plus interest. The interest rate may be lower than before, but this is because debt consolidation loans are secured loans, and this is a HUGE PROBLEM. Once you sign up for a debt consolidation loan, you have just gone from an unsecured debt to a secured debt and have put your personal assets at risk. Now if you can't pay your bills, your creditors can come and take your property away from you.

But guess what? Debt Consolidation can also be a blessing! The innovative professionals at BlueChip Debt Relief have come up with a solution that can put a debt consolidation loan into good use in settling your debt.

"...we call it 'Debt Consolidation Settlement' and it works!"

Debt Settlement Versus Debt Consolidation

A lot of authors have dealt with the issue of debt consolidation versus debt settlement in the past, and it's pretty clear across the board that using a debt consolidation loan that is secured by your home is the better debt resolution product if you have that option (and this is coming from a debt settlement company). It doesn't affect your credit negatively, you save money, and the likelihood that you'll default and lose your home is extremely low (the national default rate is 0.15% on home equity loans).

That being said, although it's clear that in most cases a home equity debt consolidation loan is a better choice, it's by no means the best choice. The fact of the matter is this: although it's an effective way to deal with high interest credit card debt, you still don't save that much money relative to debt settlement. With debt settlement, however, you're using an approach that will for the most part prevent you from being able to obtain credit during the course of the program, possibly longer. So what then is the best choice? The answer is simple: using debt settlement in conjunction with a debt consolidation loan.

How is this possible?

Assuming you have enough equity in your home to begin with, you get a debt consolidation loan while your credit is still good, sign up for a debt settlement service, wait until we've negotiated the balances down, and then settle the debt with the money from your consolidation loan. Typically, this process takes as little as 2 to 3 months to complete, and one can save, on average, as much as 50% off the balance with less of a credit hit due to the shorter payoff timeline. Moreover, the likelihood of any legal action occurring from going past due is further reduced. Since you won't need to take a debt consolidation loan for the full balance, the already low likelihood of default and foreclosure of your home is also further reduced because your monthly payment won't be nearly as high.

For the more financially savvy consumers out there that have 1. equity in their homes and 2. good enough credit to take advantage of it, debt settlement with a debt consolidation loan is the best choice.

BlueChip Debt Relief is affiliated with mortgage professionals who understand our clients' needs and if you have 1. equity in your home and 2. have good enough credit, then call us at (888) 9 DEBT RELIEF (888-933-2873) so that we can custom tailor a debt reduction program to find the optimal solution to lower your monthly payments, help you deal with your creditors, and reduce your debts fast. On average, we negotiate your balances down to about 50% LESS than what you owe. For example, through our debt reduction program, if you owe $40,000 to your creditors, we may be able to reduce your debts by approximately $20,000.