Capital One offers debt consolidation assistance for those who are currently facing the troubles of multiple debts. The bank provides personal loans and lines of credit that you can avail for a number of purpose, including debt consolidation. However, there are certain things to consider and get acquainted with before going for a debt consolidation loan.
Consolidate your debt with personal loan and installment loan
Making multiple monthly payments on your high-interest credit card bills and auto loan could put a strain on your finances. It will be sensible to consolidate all your outstanding debts into one single monthly payment with a personal loan.
The bank offers competitive interest rates with their personal loans and this will allow you to save some money on the interest that you pay for your debts each month.
The good thing is that a personal loan is an unsecured type of loan where you do not need to pledge your car or property as collateral. However, to be eligible for a personal loan, you must have good to excellent credit scores.
Alternatively, you can find several lenders in the loan market who could offer you a debt consolidation loan at an affordable rate, which will help you combine all your existing debts and loans into one loan having one monthly payment.
It is better to act or get assistance before you are engulfed by your debts. There is always help available whatever your situation is. You need to look around and shop for the best.
Should you seek the advice of a Credit Counselor?
Before you apply, always make sure to compare the total amount that you pay now with the amount you would be paying once you are approved for a debt consolidation loan. This will let you know whether a consolidation loan is a better choice or not for you.
It is for this reason recommended that you get the help of a professional credit counselor as they are trained and well aware of the available budgeting and payment reduction plans in the market.
The National Foundation for Credit Counseling (NFCC) is a non-profit organization that can assist you in finding a reputable credit counseling organization.
Some benefits of credit counseling
A reliable credit counselor will be able to discuss your current financial situation and suggest you a personalized plan to cope with your debt problems.
For example, your credit counselor may recommend you to enroll in a debt management plan under which you deposit fund with the credit counseling organization.
The credit counseling organization will then use your deposits to pay off your debts such as credit card bills, medical bills and student loans, based on a payment schedule developed by your counselor with your creditors.
You should make sure that you find a legitimate and reputable credit counseling organization before you enter into any kind of debt management plan.