If you wish to get rid of multiple bill payments in Texas, you should go for Texas debt consolidation. This process helps to lower your monthly payments thereby saving you money on interest rates and late fees. With Texas debt consolidation, you can get rid of harassing phone calls from creditors and work your way out of debt without even filing bankruptcy.
Texas debt consolidation - How it works
Texas consolidation gives you the chance to consolidate or merge multiple debt payments into a single monthly payment at a low interest rate. You can consolidate your bills by choosing any of the options below:
Option 1: Texas debt consolidation program
Texas consolidation programs are helpful for those who are employed and can pay off their bills. What you need to do is enroll in a program available with a Texas consolidation company. A consultant with the Texas consolidation company will help you prepare a suitable budget and a payment plan for you depending on how much you can afford. Next, the consultant will negotiate with each of your creditors or collection agencies to reduce your interest rates, late fees, and penalties.
This lowers your monthly payments and makes it easier for you to pay off your bills. The best thing about a Texas debt consolidation program is that it replaces all your bills with a single affordable payment you make to the consolidation company. The company then divides and distributes the payment amongst all your creditors.
Option 2: Texas consolidation loan
This is an option where you take out a personal loan or a home equity loan to clear your bills in a single lump sum payment. But if you don't have good credit, you may not be able to qualify for this loan. It is better to choose a personal loan because it doesn't require you to keep your home as the collateral (as in a home equity loan). Find out more...
Avg credit card debt: $5,343
Delinquency rate on (credit card): 1.83%
Mortgage debt: $154,006
Delinquency rate on (Mortgage): 2.20%
Auto loan debt: $23,063
Delinquency rate on (Auto loan): 1.53%
Unsecured personal loan debt: $8,551
Delinquency rate on
(Unsecured personal loan): 6.53%
Other options for debt relief in Texas
Apart from consolidation, there are other options available for getting debt relief in Texas. The options are mentioned below:
- Credit counseling: This is mostly offered by credit counseling agencies. It is a program wherein a credit counselor helps you with tips on how to budget your expenses and manage your bills better. Learn more...
- Debt management plan: If the counselor finds that you're unable to manage your bills simply by following a planned budget, then he may offer you a debt management plan. This is a plan under which credit counselors work with your creditors and collection agency and let you obtain low rates on your bills. The purpose is to lower your payments and make it easier for you to pay down your outstanding balance. Find out more...
- Debt settlement: You can go for debt settlement Texas program when you want to get rid of your outstanding loans in a single lump sum payment. Once you enroll into the program, the debt settlement Texas companies will open a trust account for you. Thereafter, you need to save nearly 50% of the loan amount in the account. As soon as the required amount is saved in the trust account, the settlement company will convince your creditors to lower the payoff amount. This way, it will be easier for you to repay the bills with competence. Know more...
As you've told that you want to be smarter for your other kids' educational expenses, then it's advisable that you invest in an education savings plan to raise the necessary funds required to cover future college costs. All your contribution towards it are tax deductible.
Apart from that, you must be willing to cut back on unnecessary household expenses and rectify your impulsive purchasing habits too. Do some shrewd budgeting and stick to that. Minimize credit card use and you may take advantage of one of these debt calculators to pay off your debts as soon as possible: https://www.debtconsolidationcare.com/calculator/index.html
Having debt obligations gone, you'll save a lot of dollars that were used to cover the interests on your balances. Use your savings to cover the cost of your children's education.
you can save
FAQ on Texas debt consolidation options
There are several options for those who wish to get rid of bills in Texas. But you need to analyze your financial standing and find out how much you can afford to pay. Only then you'll be able to choose the right way out of your debt problems.