If you’re looking for help with debt, you’re not alone. In 2023, the average non-mortgage debt balance was $23,964, according to Experian. That’s a large chunk of change, especially considering that the median American household only brings in about $74,580 per year.
Debt can hurt your financial security and ability to reach your goals. That’s why many consumers may consider debt consolidation options like those offered by Accredited Debt Relief, a debt consolidation company.
When to Consolidate Your Debt
If you’re dealing with multiple high-interest debts, having trouble managing monthly payments or looking to simplify your finances, debt consolidation might be a good option to help you regain control and save money. Here are three scenarios where debt consolidation could be beneficial:
- You have a significant amount of unsecured debt. If you have $10,000 or more in unsecured debt—like credit cards, medical bills or personal loans—you may qualify for debt consolidation. By consolidating your debt into one monthly payment, you can potentially secure a lower interest rate and reduce the amount you pay over time. For example, Accredited Debt Relief reports that their clients saw monthly payments reduced by 40% or more on eligible debts.
- You’re struggling with managing monthly payments. Keeping track of multiple monthly payments can be challenging. Missing one can lead to late fees and even impact your credit score. Combining your debts into one monthly payment can help simplify your bills and reduce the risk of missed or late payments.
- You want to simplify your finances. Merging your debts into a single payment can potentially make budgeting more effective and help you reach your debt-free goal sooner.
Debt Consolidation Loan Requirements
Debt consolidation lenders look at things like your payment history, source of income, credit score or credit history. Any of these factors may influence your ability to get approved for a loan.
Typically, credit card consolidation loans require a credit score of at least 580. If your score is less than 580, you might face rejection or less favorable terms. Also, if you don’t have a steady income, lenders may be hesitant about your application, as it could suggest potential issues with making consistent or timely payments.
You can check if your bank offers debt consolidation loans or explore private lenders specializing in this area. If your application is rejected, your next best step could be reaching out to a company like Accredited Debt Relief for a free consultation. They can review your unique situation and help you find the best plan for your needs.
How Working With a Debt Consolidation Company May Help
Debt consolidation companies can offer you options to reduce your monthly payments and help you save money. They assess your finances to help you decide which option is best for your specific situation, offering programs and loans for qualified clients.
When choosing a debt consolidation company, consider thoroughly vetting them since you’ll be sharing personal information. For instance, Accredited Debt Relief has helped over 500,000 clients and has a 4.9-star rating on Trustpilot and top ratings from Consumer Affairs.
Taking Control of Your Debt
Getting out of debt often starts with avoiding more financial strain. To do so, consider making regular payments, cutting up the credit cards you’re paying down and avoiding opening new ones for now.
If you’re eligible for debt consolidation—like the options offered by Accredited Debt Relief—it can potentially simplify your bills and provide the support you need to get out of debt faster.
Compare Ways to Get Out of Debt
Effectively managing debt can come down to understanding the different strategies available to you. Each method can have its own pros and cons, so it’s important to choose the one that best fits your financial situation and goals. Here’s a comparison of various ways to get out of debt:
You can use this table to weigh your options and determine the best path to get out of debt.
Research your options as you consider the different ways to consolidate your debt. Consider shopping around, reading reviews and talking to the companies you’re interested in working with. Getting information straight from the source can help you make an informed decision, as each option suits specific financial situations.
Fee for Settlement
15% to 25%
Free, no obligation consultation
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