Corpus Christi is one of the most economically developed cities in Texas. Being a coastal area, the city has vibrant tourism activity and government institutions. This means most people have a steady source of income. However, many find themselves with overwhelming debts trying to keep up with the city lifestyle. If you find yourself with several debts that you can’t afford, debt consolidation services can help relieve your debt stress.
Types of debt consolidation in Corpus Christi
There are two types of debt consolidation for Corpus Christi residents, depending on your financial capabilities and the consolidation agency.
Loan Based Debt Consolidation
Unlike Austin debt settlement companies, some lenders in Corpus Christi give debt consolidation loans for faster debt payment. Mostly, the interest rate is lower than that of the previous creditor and the repayment time is shorter. To qualify for the loan, you must have high credit scores or high-value assets as collateral, depending on your amount.
Debt Consolidation Without Loan
Nonprofit credit counselors in Corpus Christi offer debt consolidation without a loan. The company reviews your debt to determine your financial capabilities. The counselor can organize a debt consolidation plan if you’re low on finances. The organization contacts the creditors to have them reduce or waiver interest rates and stop late and over-limit payments. From there, the debts are combined, and a single monthly payment is made. The organization pays your debts, and the accounts are closed. You only make monthly payments to the organization. These companies do charge monthly fees and are also paid by the credit card companies for the debt they collect from you.
Debt Relief with Debt Settlement
Debt settlement is often the least expensive route to resolve debt without bankruptcy. Rather than making small monthly payments to creditors, you can save funds in a special purpose account to negotiate and settle with your creditors. Often these plans can cost less than half compared to making minimum credit card payments, but depending on your credit now, it could be negatively impacted. However, once you are out of debt, it is not too difficult to rebuild good credit. The savings can be huge.
If you need debt consolidation services in Corpus Christi, different organizations can help you. There are nonprofit originations that can consolidate your debts without a loan, but you must meet certain qualifications. Others offer loans to consolidate your loan at an affordable interest rate. And finally, debt settlement can negotiate reductions in your debt balances.