If you owe multiple bills in Iowa and you'd like to cut down on your expenses, Iowa debt consolidation can be helpful. You can consolidate bills either by going for an Iowa consolidation program or by taking out a consolidation loan.
Iowa debt consolidation - 2 Major ways to consolidate bills
Here's a brief description on how you can consolidate and pay off bills in Iowa.
- Iowa consolidation program: This program is offered by consolidation companies that help you to pay off unsecured bills like credit cards (cc), medical bills, personal loans, gas cards/store cards, etc. with a single monthly installment. Consolidators at the Iowa debt consolidation company negotiate low rates with your creditors so that you can cut down your monthly payments and repay your bills with ease. Based on the type of bills you owe, you may come across consolidation programs like:
- Bill consolidation: If you're overwhelmed with credit card/store card debts and medical bills, and can't keep up with the monthly payments, you can try a bill consolidation program. It'll help you reduce or eliminate over-limit charges on credit cards, and late fees on cc accounts and medical bills.
- Payday loan (pdl) consolidation: This is a program which enables you to tackle payday loans by making low monthly payments negotiated with the pdl lenders. With pdl consolidation, you can combine several pdls into one easy monthly repayment and pay off your bills faster. Learn more on how to consolidate payday loans.
- Iowa consolidation loan: These are personal loans available without collateral. If you don't have too many negative items on your credit report, you can qualify for Iowa debt consolidation loans that are offered at low interest rates. With a consolidation loan, you can repay several bills with a lump sum payment. You'll then have to repay the consolidation loan in small monthly installments.
Benefits of Iowa consolidation program and loan
With Iowa consolidation, you benefit in a number of ways. They are:
- You get low interest rates on your accounts.
- You can repay debts in low monthly payments.
- You make one monthly payment instead of many.
- Late fees and over-limit charges are reduced/waived off.
- You can get rid of debts without filing bankruptcy.
Iowa debt consolidation tips to watch out for
Here are 4 simple tips that can help you consolidate bills successfully:
- Find the right consolidation option: If you're looking to get rid of bills faster, you can choose a consolidation program. However, if you'd like to pay off your bills all at once, then you should go for an unsecured consolidation loan. You need to determine which consolidation option fits your situation so that you know which one will work the best for you.
- Avoid late payments: When you're consolidating bills under a program, you should maintain a monthly budget that can help you make your payments comfortably. It is advisable that you avoid making late payments when you're in an Iowa debt consolidation program.
- Check for hidden fees on a consolidation loan: When you go for an Iowa debt consolidation loan, try to find out whether or not the lender is charging any hidden fees. Explore loan offers made by a few lenders, and compare their rates and monthly payments to obtain the best deal on your consolidation loan.
- Protect yourself from scams: There are several consolidation companies which charge high upfront fees without offering proper services. If you become victim of such a scam, you'll lose your money instead of saving dollars through consolidation.
FAQ on Iowa consolidation program and loan
Q) I have accumulated debts on 7 payday loans. My checking account is empty due to penalty charges. I guess I won't be able to close checking account since it is overdrawn. What should I do now? Can Iowa debt consolidation programs help me get out of this crisis?
Ans: Payday lending is illegal in Iowa. Therefore, you don't have to pay the interest charges. However, you need to pay only the principal amount. So, you don't need to enroll in a consolidation program. You can co-ordinate with the lenders to provide you with a repayment plan so that you can pay back the principal loan balance. Know more...
Q) My husband was laid off and we are having problems paying our credit card bills. If the bank issues a charge-off and sells off the accounts to a collection agency, will the CA garnish our wages?
Ans: If the CA sues you and gets a judgment from the court, they'll be able to garnish part of your wages. To avoid garnishment, get enrolled in an Iowa debt consolidation program and merge your cc bills into one easy monthly payment. It'll help you repay your bills much faster.
Q) I'm trying to get out of payday loan mess and repay my cc debts, and medical bills. I'm not sure whether I should consolidate or settle the debts. With my fiance needing money for school, I don't think we'll have enough left to make monthly payments for 3-4 years in a consolidation program. So, I was just thinking we could go for a settlement. What do you say?
Ans: When you settle bills, it affects your credit score negatively, though you can repair credit after settlement. However, when you consolidate medical bills, it has a positive effect on your score because there's no reduction in the principal balance. Check out further details on whether you should consolidate or settle debts.
Iowa debt settlement - An alternative to consolidation
If you aren't comfortable paying off your debts with monthly payments, you can go for an Iowa debt settlement program where negotiators work with your creditors or collection agencies to cut down your outstanding balance. The purpose is to let you settle your debts for less than what you owe.
The Iowa debt settlement company will create a trust account for you to deposit your monthly payments there. Once the payments add up to a lump sum amount, the Iowa settlement company will talk to your creditors, request settlement of your accounts, and forgive the remaining balance. Learn more about how settlement works.
Whether you choose to consolidate or settle debts, each of the options help you to avoid harassment by creditors. But not all accounts are held by creditors; some of them may be sold off or assigned to collection agencies. So, prior to consolidating or settling your accounts held by the CA, try to verify whether you actually owe the money and how much you owe on such accounts. Send a validation letter to the CA asking them to prove that you owe the debts. Once you have received the proof, you can work towards paying off the bills without going into default.