Are your credit card bills getting out of control? Are creditors charging you late fees and penalty charges? If you're not able to make payments on your credit cards and other bills in Illinois, you should try an Illinois debt consolidation program or loan in order to get out of debt.
Illinois debt consolidation program - How does it work?
This type of program is offered by an Illinois consolidation company. When you approach the company for help to manage your bills, they'll ask you to attend a free counseling session. In this session, a company representative will analyze your finances. Based on your situation, the company will offer you an Illinois debt consolidation program or help you to settle the debt.
The consolidators at the Illinois consolidation company will speak to your creditors/CA and help you to:
- Get reduced interest rates on your bills
- Minimize or eliminate late fees and over-limit charges
- Consolidate your bills into one monthly payment
With an Illinois consolidation program, you can repay your obligations within 4-6 years. If you continue with the regular repayments, it will take longer.
What are the types of Illinois consolidation programs?
The relief programs offered by Illinois consolidation companies are:
Credit card consolidationThis is meant for those who are overwhelmed with credit card (cc) bills and wish to get rid of late payments, penalties and over-limit fees. Learn more....
Payday loan consolidationprogram helps you to consolidate payday loans and avoid paying high interest charges.
Medical bill consolidationThis enables you to consolidate several medical bills into a single monthly payment that you can afford.
Avg credit card debt: $5,497
Delinquency rate on (credit card): 1.36%
Mortgage debt: $173,319
Delinquency rate on (Mortgage): 2.41%
Auto loan debt: $17,528
Delinquency rate on (Auto loan): 1.12%
Unsecured personal loan debt: $9,894
Delinquency rate on
(Unsecured personal loan): 4.44%
How does an Illinois debt consolidation loan help you?
Unsecured consolidation loans are personal loans offered by financial institutions. With an Illinois debt consolidation loan, you can repay your bills with one large payment. Consolidation loans are available at low interest rates, but the term of the loan is quite long. So you will end up paying more in interest over the life of the loan.
What is Chicago debt consolidation all about?
Chicago consolidation solutions include both debt management programs and consolidation loans. With Chicago consolidation options, you get reduced interest rates on your bills and can roll over multiple bills into one manageable payment each month. However, Chicago consolidation companies are likely to charge you a different amount of fee in comparison to the charges required by debt relief companies in other states.
How does Chicago, Illinois debt settlement help?
A Chicago debt settlement program offers an easy way to get rid of excess debt, especially for those who're experiencing financial hardship and are looking to reduce their bills. In a Chicago, Illinois debt settlement program, you can trim your outstanding balance, thereby getting rid of bills faster. Chicago debt settlement is one of the best ways to get rid of your debt. Learn more....
Law on debt settlement in Illinois
On the 3rd of August,2016 , Illinois Governor Pat Quinn introduced a bill as law which outlines some rules and guidelines for the debt settlement scams. According to the Governor, many debt settlement companies take undue advantage of people in debt. Thus, he introduced this law to protect consumers trying to get rid of debt.
This law will be known as the Debt Settlement Consumer Protection Act, and will also set up a fund and the money from that fund will be given to those people who have lost money through debt settlement companies. This law aims at curbing the business of the scam companies, and thus saving the people from losing more money.
The law includes provisions like
- The debt settlement company cannot make any false promises to get a person enrolled in their service.
- The law provides Illinois the power to issue administrative penalties, suspend, fine, investigate, revoke, deny, and even issue a cease and desist order to the debt settlement company.
- The law limits the upfront fees to $50.
- The law also mentions that the settlement agreement fees cannot exceed the principal amount.
- The settlement fees have been capped by the law at 15% of the consumer’s savings.
- The law gives the consumer the power to cancel the contract at any time, and also makes him eligible to get a refund of the fees in such a case.
However, make sure you've paid off your debts or else your creditors can take you to court.