Debt Free Via Debt Consolidation Loan Options

For many people overwhelmed with debt, their repeating thought is, “if I could get a loan to consolidate these bills, it would make the payments manageable and I would be able to get out of debt.” While consolidating debt is an appealing way to bring payments under control and manage debt, there is another way to accomplish the same thing with great results and someone to help you every step of the way.

It is called a debt management plan and it works a lot like a debt consolidation loan. The main difference is that rather than qualify for a loan to pay off all of your debt, you consolidate your payments into one monthly payment. The benefits of the program include having that one monthly payment, reducing interest rates on accounts, stopping late fees and ending collection calls from creditors.

The debt management plan is not bankruptcy or a settlement. You repay, in full, what you owe to the creditor. In exchange for the benefits we listed above, you close or inactivate your credit accounts. You cannot continue to charge on credit cards if you want to get out of debt.

The timeline for getting out of debt on this program is, about five years. However, by working with your counselor, you may be able to get out of debt even sooner. Many people make extra payments on the program once they feel their finances are back in control. This only helps you eliminate debt faster.

According to one client of American Financial Solutions, having counselor support made a huge difference in their ability to stick with the program and pay off their debt. “About five years ago, before I contacted your company, I was in a very low place, at the bottom of a mountain of credit card debt, and wondering if my situation would ever improve.  After I contacted AFS, I felt a little better -- I had hope.  On that day, I couldn't see today, but I knew if I stayed on the plan, today would come eventually. And now, here it is -- my debt-free day!  Zero balances on all my accounts!  I now have one open credit card account, which is reserved solely for emergency car repairs.  It also has a zero balance.  So, thanks again for making what seemed impossible five years ago into a reality today.  Feel free to use me as a reference!”

As you already know, getting out of debt is not easy. It takes dedication on your part, support, a little bit of hope and a telephone to make that first call. 

Published May 1, 2014.