Myths About Debt Consolidation You May Have Thought Were True

Different people have different opinions about debt consolidation, and many of those opinions are formed based upon information that isn’t necessarily accurate. Here are a few common misconceptions about debt consolidation that you should be aware of before deciding upon a debt relief strategy.

1. All debt consolidation services are fraudulent.

Debt consolidation services are perfectly valid and effective strategies for debt relief. A reputable debt consolidation service can help a wide variety of borrowers take control of their debts through strategic loans and customized monthly repayment structures.
Unfortunately, there are questionable services that prey upon people who are overcome by their debt obligations. It is critically important for find an accredited debt consolidation and management service that has a long history of successful client service.

2. You’ll just get into deeper debt with debt consolidation.

A debt consolidation loan allows borrowers to clear multiple outstanding debts (credit card, personal loans, etc.) while making a single, manageable monthly payment to the debt consolidation lender. If you take advantage of proper credit counseling and budget your funds correctly, you will be able to pay off your debt consolidation loan more quickly than you would have your previous debts, with only a minimal affect on your credit score.

3. Debt consolidation is the same thing as debt relief.

While debt consolidation is a form of debt relief, there is a wide variety of debt relief solutions that may also be effective for debt clearance. Debt consolidation is a specific form of debt relief, involving taking out one loan to pay off multiple debts, and then repaying the single loan. Other debt relief services may be:

• Debt settlement
• Debt management plans
• Debt renegotiation
• Debt reduction

The goal of debt consolidation is to ultimately pay the least possible amount in interest and fees while clearing long-held debts quickly.

Americor Funding: Delivering effective and responsible debt consolidation services to diverse borrowers.

Americor Funding provides borrowers with the advice, resources, and support they need to clear their debts as quickly as possible. If you are finding it difficult to manage your debts and need lending or debt management assistance, please contact the team at Americor Funding for information on the best debt relief strategies for your lifestyle and financial goals.