If you're getting behind on your bills in Michigan, you may want to consolidate them into a single monthly payment that's easy to pay. You can consolidate bills on your own or get professional help from a Michigan debt consolidation company.
Michigan debt consolidation - 5 things you should know
Michigan consolidation options can help you combine all your bills into one easy monthly payment. Therefore, you need to make a single monthly payment to the consolidation company, which will then divide and distribute the payment amongst your creditors and collection agencies. Whether you're in Detroit or any area in Michigan, the consolidation options are the same. Here are the 5 things that you should know about Michigan debt consolidation.
Michigan consolidation options:You can consolidate bills by choosing a consolidation program or applying for a consolidation loan. When you're in a consolidation program, a consultant will negotiate with your creditors and help you obtain an affordable payment plan. Take a look at the various consolidation options in the article on "How do I consolidate my bills?".
Criteria for Michigan consolidation:Each company or lender has different criteria to determine suitability for a consolidation program or loan. You need to have certain amount of debt in order to get enrolled in a program. There's a criterion regarding your credit history with a program. But you need to have good credit record if you'd like to get a consolidation loan.
Consolidation can help lower interest rates:The consultant at the Michigan debt consolidation company reviews your financial situation and works with your creditors in order to have your interest rates reduced. This helps you save money.
Creditors can eliminate late fees and penalty costs:If you've made late payments or exceeded your credit limit, your creditors/CA will charge late fees and over-limit charges. Michigan consolidation companies can negotiate with your creditors/CA and help you get rid of late fees, over-limit charges, and other penalty costs.
Creditor/collection calls will stop:When you're able to repay your bills with the help of Michigan debt consolidation options, creditors or collection agencies will stop harassing you with repeated phone calls or letters.
Avg credit card debt: $4,863
Delinquency rate on (credit card): 1.39%
Mortgage debt: $128,928
Delinquency rate on (Mortgage): 1.54%
Auto loan debt: $13,673
Delinquency rate on (Auto loan): 1.27%
Unsecured personal loan debt: $10,633
Delinquency rate on
(Unsecured personal loan): 2.14%
Michigan debt consolidation - 5 Mistakes you should avoid
Given below are 5 mistakes which you should avoid while consolidating your bills:
- 1 Don't cancel credit cards: Avoid canceling cards you have an outstanding balance on because it is harder to negotiate better interest rates with creditors if you show that you don't want to be their customer anymore. Moreover, when you keep your accounts open, it creates a positive impact on your credit report.
- 2 Read the fine print: It is better to read the fine print and be sure about the terms of agreement before you choose a Michigan debt consolidation program or loan.
- 3 Do not make large purchases: Avoid making a large purchase with your credit cards after you've included them in a consolidation program. This will keep you from adding to your balances while you're paying down your bills.
- 4 Avoid consolidation scams: There are consolidation companies that attempt to scam consumers by taking money from debtors without providing any services in exchange. So, it is better to check out the reputation of the company before you choose a Michigan debt consolidation program. Moreover, you should check out what fees you'll need to pay.
Michigan debt settlement is an alternative to consolidation
When you can't afford to make your repayments, and you don't want to consolidate, you can settle them with a one-time payment and pay down the obligation. You can settle your bills with the creditors on your own by checking out the steps to settle bills yourself.
If you find it difficult to work out a settlement with creditors, take advantage of Michigan debt settlement services that make it easier for you. Under a settlement program, negotiators communicate with creditors so that the creditors agree to reduce the total amount you owe. However, the Michigan debt settlement company will need you to pay upfront fees and a monthly representation fee.