Polk Partners has been flooding the market with debt consolidation offers with extremely low interest rates on personal loans. Polk Partners goes by different names: Carina Advisors, Ladder Advisors, Jayhawk Advisors, etc.
Advantages of Debt Consolidation Programs
Debt consolidation programs can provide you with benefits through their inherent flexibility, which will make loan management much easier for you.
Debt consolidation and debt management focus on lowering the interest rate so that you do not accumulate a lot of interest expenses that can be difficult to pay off. They also combine different loans into one debt so that paying and managing debt is more convenient and straightforward. These methods are ideal for alleviating credit card debt since these liabilities carry a very heavy interest and may also be inconvenient to repay because consumers often have multiple credit cards.
Debt forgiveness and debt settlement are more suitable for more precarious situations where the borrower is teetering on the verge of bankruptcy. These programs work by negotiating a debt that is smaller than the actual amount owed. Paying a smaller sum is certainly much easier for those mired in deep debts.
Debt settlement is a much better option than bankruptcy since the latter entails a long, drawn-out legal process that can be very difficult to manage. There is also a great stigma with filing for bankruptcy.
When Debt Consolidation Programs Are Recommended
Debt consolidation programs are the right choice when you are overburdened with large loans that are difficult to repay. They are also a good choice when you are trying to pay off debt but are finding it very difficult to repay the full amount.
While considering different the best way to consolidate debt, you must pay attention to the qualification requirements. There may be certain criteria that you must meet. For instance, your debt must be in excess of a certain minimum threshold in order to qualify. There may be other requirements as well, for instance, the program allows for unsecured loans and credit cards only – not all types of debt may be allowed under the debt consolidation program.
Under debt consolidation, you get a new loan that settles your prior debt. The new loan, in turn, has a smaller interest rate so that you can pay off the amount with greater ease. However, in order to qualify, there may be a credit score requirement. It is possible to find debt consolidation programs that allow for lower credit scores. However, they will have a higher interest rate as a low credit score presents higher risks.
Debt settlement is practical only when your loans are well overdue. It may not be possible to convince creditors to accept debt settlement if you are current with your repayments. You also need to have cash available to quickly pay off any negotiated settlement amount.
What You Should Think About Before Going for Debt Consolidation
If you are mulling over debt consolidation, then you must first take stock of the situation and consider what is best under the current scenario.
It is possible that rather than applying for a debt consolidation program, it may be better for you to attend credit counseling so that you can draw up a viable plan to successfully repay your debt.
You must also ensure that you carefully check the debt consolidation company’s reputation before entering into the program. Read about all the terms and conditions and be certain that you have checked all the fees. Once you have all of this information, you should decide if the costs are worth what you are getting in return.
What Are the Alternatives for Debt Consolidation?
Debt consolidation programs like debt consolidation loans have several advantages in their favor due to which they are a popular method for getting out of debt. They have lower interest rates, convenient repayment and allow you to save money.
However, they are not available to everyone. Debt consolidation programs are not easily within reach of those with poor credit scores. As with all loans, you need a certain minimum credit score to qualify. If you fall short on the credit score requirement, you may not be eligible for a debt consolidation program that you are considering. This is problematic because many people who are thinking about a debt consolidation program have a less than perfect credit score.
Fortunately, there are other debt-consolidation alternatives for individuals who are unable to qualify for a debt consolidation loan on account of their credit score. One of the best is credit counseling.
