Utah debt consolidation - How to get rid of a debt crisis
If you find it difficult to manage your bills in Utah, try negotiating with your creditors to have your interest rates reduced or your outstanding debt decreased. If negotiating on your own doesn't work, try getting help from a Utah debt consolidation or settlement company.
How do Utah debt consolidation companies help you?
Utah consolidation companies offer programs where they negotiate with your creditors to lower your interest rates and monthly payments. They also negotiate to lower your late fees and over-limit charges to make your repayments affordable. Find out more about a consolidation program.
Utah debt consolidation loans - How do these work?
If you wish to pay off your bills with one large payment, apply for an Utah consolidation loan with a bank or commercial lender. These loans are often available at low interest rates. Therefore, when you pay your bills with the consolidation loan, you have just a single loan to pay down with a small monthly repayment. This helps you get rid of multiple bills faster and saves you money Learn more...
What should you avoid when consolidating your bills?
Here are the things you shouldn't do when you consolidate bills in Utah.
- Getting a hard money loan
A hard money loan is a type of second mortgage based on the quick-sale value of your home. If you have bad credit, you will not qualify for low-interest Utah debt consolidation loans. What you may qualify for is a hard money loan at high interest rate, 20% or more. So, instead of making your payments affordable, a hard money loan may cause further debt problems.
- Enrolling with a consolidation company that makes outrageous promises
There are consolidation companies who'll promise to help you get lower interest rates on your loans, then charge a lot of money without providing any services at all. Make sure the company you enroll with is legitimate or you could end up in worse difficulties.
- Not monitoring whether your payments are sent to your creditors
Your creditors should send you payment statements so that you can track whether your consolidation company is forwarding payments to the creditors on time. This is essential to make sure the company does what it promises to do.
- Continue charging on credit cards
It is better to keep your credit cards in a safe place and avoid using them until you're out of debt and your finances are back on track.
What are the alternatives to Utah consolidation programs?
Other than consolidation programs, there are a number of options you can use to pay off bills in Utah. These are:
- Credit counseling: You can get help from non-profit credit counseling agencies that will advise you on managing your money better and help you develop a budget. They'll offer free educational materials and hold workshops where you'll learn about debt management, budgeting, and credit repair.
If you're deep in debt, the counselor may suggest you enroll in a debt management plan. With this type of plan, the counselor negotiates with your creditors and collection agencies to lower your interest rates, thus reducing your monthly payments. You pay a certain amount each month to the credit counseling agency, which is then paid out to your creditors.
- Utah debt settlement: If you're not able to make the monthly payments on your bills and you want to have your outstanding balance reduced, you should negotiate a settlement agreement with your creditors. If you don't feel safe negotiating on your own, you can get help from a Utah debt settlement company. They'll negotiate with your creditors to get your outstanding balance reduced of what you owe. Learn more...
FAQ on Utah debt settlement and consolidation
Q) I have credit card debt in Utah and I'm afraid that the creditor may garnish my wages. How do I get rid of this problem?
Ans: A credit card company must file a lawsuit against you and get a judgment lien before they are permitted to garnish your wages. In Utah, a creditor is not permitted to garnish more than 30 times the hourly Federal minimum wage or more than $180 a week. If you wish to avoid being sued, negotiate an alternative payment plan with the creditor. If nothing works out between your creditor and you, enroll in a Utah debt settlement program and pay off your bills.
Q) I have 6 internet payday loans and I can't afford to make the monthly payments any longer. What should I do now?
Ans: Since these are internet payday loans, you should first check to make sure these lenders are legal in your state. If the lenders are not allowed to give out loans in Utah, you are only obligated to pay the principal balance. If they are legal, the best thing you can do is to enroll in a Utah debt consolidation program.
Q) Can I get a loan to consolidate credit cards in Utah?
Ans: Yes, if your credit score hasn't decreased too much, you can take out a Utah debt consolidation loan to consolidate and pay off your bills with one large payment. The consolidation loan will be paid off in small monthly installments.