If you're troubled with debt in Rhode Island and you're looking for fast relief, you can try Rhode Island debt consolidation. This is where you combine several bills into one monthly payment that's easy to manage.
Rhode Island debt consolidation - Ways to do it
There are 3 ways you can consolidate debts in Rhode Island. These are:
1. Getting enrolled in a consolidation programYou contact a consolidation company and attend a free counseling session where the consultants analyze your financial situation in order to find out whether a Rhode Island consolidation program will work for you.
When you enroll in a program, a debt consultant helps you plan your budget and determines how much you can pay each month. They negotiate with your creditors and collection agencies to have your interest rates reduced. So, a Rhode Island debt consolidation program or debt management program helps you merge multiple bills into just one payment each month. Learn more...
2. Taking out an unsecured personal loanApproach a bank or a private lender and apply for an unsecured personal loan to consolidate your bills. With a Rhode Island debt consolidation loan, you clear your debts in a lump sum payment. A consolidation loan usually requires you to make small monthly repayments but you actually end up paying a high interest in total, because the repayment period is quite long. Learn more...
3. Consolidating bills on your ownIf you have multiple credit card bills and you're looking to consolidate them on your own, you can simply transfer the balances from your high-interest cards into the card with the lowest rate. This will lower your monthly payment and help you save more.
When you transfer balances, watch out for the balance transfer fees you need to pay. Most creditors usually charge 5% of the balance transferred. Other than shifting balances into an existing card, you can also take out a new card having a 0% introductory rate for 6-12 months. It's worth transferring your balances into a 0% card if you can pay off your bills within the introductory period because you don't need paying any interest during that period and you save your money. You will need to pay balance transfer fees to transfer your debt to a new card as well.
Avg credit card debt: $5,367
Delinquency rate on (credit card): 1.52%
Mortgage debt: $184,433
Delinquency rate on (Mortgage): 2.66%
Auto loan debt: $14,185
Delinquency rate on (Auto loan): 1.02%
Unsecured personal loan debt: $10,640
Delinquency rate on
(Unsecured personal loan): 1.93%
Rhode Island debt settlement - An alternative to consolidation
Other than a Rhode Island consolidation program, there are options like Rhode Island debt settlement that will help you get rid of your obligations faster. However, when you settle debts, you pay much less than what you owe. Although this gets you out of debt faster, your credit score takes a hit because you pay less than the full amount. You can settle bills on your own or enroll with a Rhode Island debt settlement company where a consultant negotiates your debts down from the original amount. When you enroll in a settlement program, you start depositing an amount of money into a trust account the settlement company will create. Once you have saved a certain amount, the Rhode Island debt settlement company starts negotiating with your creditors to get them to accept a lower payment amount. With a settlement, you get the following benefits:
- Pay much less than what you owe
- You get out of debt legally
- You can avoid lawsuits and garnishments
- You have someone to negotiate with creditors on your behalf