If you wish to get rid of multiple bill payments in Pennsylvania, you should go for Pennsylvania debt consolidation. This process helps to lower your monthly payments thereby saving you money on interest rates and late fees. With Pennsylvania debt consolidation, you can get rid of harassing phone calls from creditors and work your way out of debt without even filing bankruptcy.
How Pennsylvania debt consolidation program worksIf you have a job and you can carry on with your bill payments, at a lower interest rate, then consolidation may be the right option for you. When you enroll in a consolidation program, the consolidator does an income-expenditure analysis and helps you prepare a budget. The purpose is to figure out how much you save each month to make payments towards your bills. Based on what you can pay, the consolidator works with creditors so as to reduce your interest rates and penalty charges. If you have accounts in collection, your consolidator may be able to negotiate those accounts as well.
How Pennsylvania debt consolidation loan worksThis is an unsecured loan which enables you to pay back your bills with one large payment that will leave you with only the consolidation loan to repay Learn more...
Debt consolidation Clarion programs and fees
Consolidation programs available in Clarion are similar to those offered in the rest of Pennsylvania. Of course the fees charged by companies in Clarion and other cities in Pennsylvania may be different. But the upfront fee charged by a consolidation company is capped by each state. So, if you feel that you've been charged more than what you should be paying, you should report it to the State Attorney General. The address of the Pennsylvania State Attorney General is:
Pennsylvania Office of Attorney General
16th Floor, Strawberry Square
Harrisburg, PA 17120
Avg credit card debt: $5,284
Delinquency rate on (credit card): 1.47%
Mortgage debt: $147,619
Delinquency rate on (Mortgage): 2.74%
Auto loan debt: $16,028
Delinquency rate on (Auto loan): 0.94%
Unsecured personal loan debt: $11,672
Delinquency rate on
(Unsecured personal loan): 2.04%
4 Things you shouldn't do when you consolidate bills
Take a look at the 4 things you should avoid doing while you're consolidating your bills.
1. Dealing with the wrong company:
When you look out for a debt consolidation Clarion company, you need to check their legitimacy and reputation. Check out their records available from the website of the Better Business Bureau. Read reviews about the company from other websites. Verify that the company has never been through a lawsuit and/or does not have any pending cases against it.
It is better to avoid dealing with companies that send mailers promising to erase your debt within a short time span. These companies may charge you high fees and not send your payments to your creditors on time. You may simply end up getting a charge-off (from your creditors) that will have a negative impact on your credit score.
2. Not asking questions about their services:
Whether you go for a consolidation program or loan, you should ask questions about the services the company/lender offers. You need to ask how long it'll take you to pay off your debts and how much they believe you'll save by consolidating.
3. Not concerned about hidden costs:
When you take out a consolidation loan, make sure you're not charged any hidden fees. Read the fine print and try to learn which services (loan processing and related services) you're paying for. If you get good loan terms from the lender, take time to learn where you're putting your money. Just don't sign on a deal without looking at the documents in detail.
4. Adding on to your debts:
Do not apply for new credit/loans and increase the amount you owe. Avoid making small purchases with your credit cards as it can make your situation worse. While you stop adding to your debt, try to control your expenses as well.
Still, your credit report should also display that all your closed accounts have been discharged under bankruptcy, and that your credit accounts have zero outstanding balance. If that doesn't happen, you can dispute them citing Fair Credit Reporting Act (FCRA) violation. To draft a dispute letter, you may check out: https://community.debtcc.com/letters/sample26.htmlAccording to Experian, your charged-off accounts prior to bankruptcy will continue to show on your credit report for 7 years from their original delinquency dates and will be deleted accordingly.
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FAQ on debt consolidation Clarion and Pennsylvania
What options are available other than consolidation?
Other than a consolidation program or loan, there are Pennsylvania debt settlement programs that allow you to get rid of debt by paying much less than the amount you owe. Under this kind of program, you enroll with a settlement company that communicates with creditors on your behalf so that they accept a lower payment from you. Pennsylvania debt settlement programs can help you pay much less than the outstanding balance you owe.