We have admittedly spent a good deal of time expounding the virtues of our debt consolidation process. We have provided tips, general how-to guides, and online calculators but we have yet to fully explain how the process works.
With that in mind, this articles provides an easy walk through of our debt consolidation process.
What is Debt Consolidation
We go into more detail here, but in broad strokes, debt consolidation is just transferring your debts into a lower interest loan. This lets you lower your interest payments, increase your principal payments, reduce your debt faster, raise your credit rating, and consolidate again. All without increasing your monthly payments.
This last part is critical and is the true strength of the process. You do all of this without spending any extra money.
How is this possible? Simple. There are people that are willing to lend you money at lower interest rates than your credit cards. That’s it.
The chart below shows how much you can save in interest payments:
- As you can see, your interest payments fall by more than half in just the first year alone
- By the end of the process, you have reduced your debt by 50%-75%, without spending any extra money
Our Debt Consolidation Process
The first step in our debt consolidation process is an assessment of your debts, assets, and incomes. Debt consolidation isn’t necessarily what is best for everyone and when it is, there can be more than one option. We can help you assess whether debt consolidation is right for you.
We will never put you with a solution that isn’t what is best for you.
2 – Explanation
Once we have assessed your situation and the best options available to you, we will lay out the timeline, rates, monthly charges and how much money you can save (you can save $1,000’s every year in interest payments).
It is important to us that you have a thorough understanding of the entire process (hence this blog post) and the specifics of your debt consolidation solution.
We design our process to be as transparent as possible and we are always happy to answer any questions you might have.
If all parties are interested in proceeding, we will underwrite the loan – essentially verifying all of the relevant information. This is all on our end and is done quickly.
4 – Transfer of Funds
Once all of the t’s have been crossed and i’s most thoroughly dotted, the funds are transferred directly to your account.
5- Next Steps
Now that you have the funds in your account, the actual debt consolidation takes place.
You simply use your new funds to pay off your existing, high-interest debts.
You are then left with a single loan that has lower minimum payments – allowing you to pay off your debt faster, without increasing your monthly payments and putting undue stress on your family.
As you pay down your debt, you improve your finances and can qualify for an even better loan. This is a process we call Virtuous Cycle of Debt Consolidation
It sounds simple because it is. Using the equity in your home provides the lowest interest rate you can get and is the best way to consolidate your debt. If you have any questions or if you are curious if debt consolidation is right for you, give us a call.
Want to Learn More?
If you would like to know more about debt consolidation, including helpful tips and best practices, you can sign up for our free educational email series
I Am Interested in Consolidating My Debt and Saving Money
Great! You can fill out a quick, online, obligation free application here
I Don’t Want to Apply Just Yet But Would Like to Know More
If you want to look into consolidating your own debt, but don’t want to fill out an application, just fill out some basic information here to find out what we can do for you.
Of course, you can always just give us a call or send us an email. We would be happy to answer all of your questions