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Texas Debt Consolidation-How to repay debt in Austin, Dallas, Houston

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...

State of Texas (TX)
map of Texas state in USA

 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%

Payday loan laws >>


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...

Case study

ScenarioHi, Our eldest son graduated from a state university this year in May. We used a parent plus loan and we've opted for an extended repayment plan of 25 years. The loan amount is $86,900 and our monthly repayment amount is $685.45. It's nauseating to think of paying just that, leave alone the groceries, credit cards, utilities and medicines. What alternatives do we have for the rest of our kids? Hoping to be smarter the next time.
Solution As you've already enrolled yourself into extended repayment plan of 25 years. It'd be better that you do follow that with diligence as you'll have to pay back within the stipulated time. If you want to change your repayment plan, then you may contact your loan servicer using your online account. However, you may call or mail your loan servicer, if needed be.
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:
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.

How much
you can save
in Texas


FAQ on Texas debt consolidation options

I have been threatened with wage garnishment for defaulting on my student loans. Can my wages be garnished in Austin, Texas? Can consolidation companies in Austin, Tx offer any help in this regard? I owe $30,000 in total.
Ans:As far as I know, wage garnishment is allowed in Texas for unpaid student loans, alimony, child support, etc. To resolve your debt problems and avoid a garnishment, you should take out an Austin, TX consolidation loan to repay your student loans with one large payment. Learn more...
I have accumulated high balance on storefront payday loans and I'd like to get rid of them ASAP. Can a Dallas, TX consolidation loan help me pay off payday loans (pdls)?
Ans:The best way to pay off storefront payday loans is to request an extended payment plan from the lender. However, these plans aren't offered in Texas. What you can do is to apply for a Dallas, TX debt consolidation loan and get rid of your payday loans in a single payment. Find out more...
I'm thinking of filing a bankruptcy in San Antonio, as I'm stuck with internet payday loans. Am I going the right way?
Ans:I don't think you should file bankruptcy without trying out other options such as a San Antonio debt consolidation program. San Antonio consolidation companies can help you consolidate internet payday loans and pay them off faster.
I had an account which was charged-off and sent to collections. It's about $3362. I didn't request validation when the collection agency sent me the first letter. They've offered to settle the bills for half of the original balance. Should I validate it now? I may not be able to pay a lump sum settlement amount. Will they agree if I negotiate monthly payments with them? I have cc bills too. Is there a program in Houston where I can pay off credit cards as well as the charged-off accounts?
Ans:It looks like you're not ready for a settlement. What you can do is get enrolled in Houston consolidation program. This kind of program will help you obtain low interest rates on your bills. The best part is that you don't need to negotiate on your own. The consultant at the Houston consolidation company communicates with your creditors on your behalf. Check out these further details...
I have received a notice from one of my creditors threatening to sue me for an old credit card debt. I'd like to know the Statute of Limitations (SOL) in Fort Worth, Texas for cc bills. I'm also having payment problems on other cc bills. Can you suggest a way out of this?
Ans:The SOL on cc bills in Texas is 4 years. After the SOL has expired, the company cannot sue you in order to collect on the debt. If you start making payments under a new payment plan, the SOL will restart and if you default again, the creditor has another 4 years to sue you.

If the SOL period hasn't expired, you may approach a Fort Worth consolidation company and get their help in getting out of debt. They'll help you consolidate the old credit card account along with other bills and make your payments affordable. Learn more...

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.