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How do I consolidate loans

"How do I consolidate loans?" At American Consumer Credit Counseling (ACCC), we hear that question all the time. Consumers who are in debt, often believe that bill consolidation loans are the best path out of debt.

But rather than asking "How do I consolidate loans?" we encourage individuals and families to ask this question instead: "How do I get out of debt most effectively?" The reason for this is because consolidated loans may not always be the right choice for every consumer.

If you're deep in debt or your credit rating is not perfect, you likely won't qualify for the low debt consolidation loan rates that make consolidation a smart choice. For many consumers, debt consolidation simply shifts debt around rather than actually paying it down. That's why many consumers are still in debt after a year or two into a debt consolidation plan.

When you're looking to find debt consolidation assistance and to get answers to the question "How do I consolidate loans?", contact our certified credit counselors for a free credit counseling session.

How do I consolidate loans?

  • Understand the difference between a consolidation loan, a debt management program, and debt negotiation so you pick the one best for you.
  • Consult with a loan counselor and compare the total cost of consolidation to your current situation and to other consolidation loans.
  • Come up with a loan contract with chosen lender or creditor keeping in mind the financial advice given by the counselor.
  • Upon receipt of the creditor's additions to the contract, read the final contract carefully.
  • Finalize the loan.

How do I consolidate loans with help from ACCC?

As a nonprofit organization, ACCC offers free credit counseling to help you answer questions like "Is consolidation right for me?" and "How do I consolidate loans most effectively?" Our counselors will help you evaluate your financial situation, look at all the possible strategies for reducing or eliminating your debt, and help you choose the option that makes the most sense.

We'll also guide you to many helpful resources, including educational material on our website that can help answer questions like "How do I create a budget?" and "How do I consolidate loans for student debt?"

How do I consolidate loans with a debt management program?

With a debt management program, the question isn't "How do I consolidate loans?" but rather "How do I get out of debt faster?" A debt management program won't require you to take on new debts in order to pay off existing loans. Instead, you'll consolidate payments each month and send just one payment to ACCC, based on a budget we'll help you create. We'll arrange to pay your bills each month while also asking your creditors to lower your interest rates and finances charges, or to re-age your accounts. As a result your bills will be paid on time each month and you'll be less stressed about finances. And you'll be able to pay off your debt faster, usually in less than 60 months.

Get more answers to questions like "How do I consolidate loans?", "What is a debt management program?" and "What is a good credit score to buy a car?"

American Consumer Credit Counseling (ACCC) provides non-profit credit counseling, debt relief, and debt elimination services for consumers nationwide. We offer free credit counseling to help consumers identify the right debt reduction program or debt solution for their unique situation. Since 1991, our certified credit counselors have helped thousands of individuals and families learn how to pay off a credit card balance and how to get out of debt fast through programs designed to payoff credit card debt within five years. Our debt management programs consolidate card credit debt payments and help reduce interest rates and finances charges, reducing the time it takes for getting rid of debt. And we offer comprehensive financial education services where consumers can get answers to questions like "How do I create a budget?", "What is debt consolidation?" and "How can I avoid debt in the future?"

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