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Educating yourself on debt consolidation in St. Louis can help you manage your debts and find a local company that can help guide you in consolidating your credit bills and lowering your interest rate or payments. Each person has a different financial situation. For example, one person may have great credit and only be interested in a personal loan whereas another person would have poor credit and a large amount of debt. It can be a difficult task finding the right debt solution for your specific situation.

Before you start the process, you should learn the three options that can help relieve your debt.

Credit Counseling:

This type of debt consolidation in St. Louis is referred to as Debt Management Plan (DMP). The DMP program gives the consumer room in their monthly budget to make progress on paying down their debts. This process involves consolidating multiple unsecured debts into one monthly payment. Based on the agency that the consumer selects, the company will have the ability to negotiate better repayment terms based on their relationships with the creditors. Typically, the new monthly payment after consolidation is lower than what they were previously paying in total for all their individual debts. One downside is that some creditors may not agree to consolidate debts.

Debt Consolidation Loans:

A method for debt consolidation in St. Louis is available in the form of a loan.  This loan is used to pay off multiple debts by securing a lower interest rate or fixed rate with one single monthly payment. These loans can be secured against an asset like a house, or a personal loan which is also available from lenders. Choosing this option can be risky. If you do not maintain your payments, there is a chance your property will be foreclosed.

Debt Settlement:

This type of program involves a settlement agency negotiating with creditors to lower outstanding balances on an individual’s debt. The monthly payment is made under the debt settlement program or is placed in a settlement fund or escrow asset in anticipation of reaching and agreement with the creditor. This option is usually only available to individuals who owe a total liability that is less than $10,000.

If you are interested in getting debt relief, feel free to fill out a loan application. Learn more about debt consolidation in St. Louis by contacting one of our debt management specialists at our Toll Free Number: 800-965-9910.

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