Debt consolidation, when it comes to business there are numerous things that you must keep in mind, the first and foremost concern is usually regarding finance. Once you have managed to resource the capital to finance the business, the major trouble that may arise is during paying off the amount that you have taken in the loan. Even the most seasoned businessmen need some amount of loan to make sure that the finance they need is manageable. However, in case you experience a loss in the business, paying off that loan can be difficult. In the worst scenario, you may even become a victim of bankruptcy.

Debt Consolidation Plans

In order to avoid above situation and make sure that you can turn around, there are numerous finance policies that you can opt for including the debt consolidation plans.

1. Legal debt management

In the case of incurring debt, the best option is looking for legal solutions to handle it. There are numerous law firms which specialize in providing debt consolidation and bankruptcy-related solutions. However, choosing a reputed lawyer who has enough experience is essential in order to ensure that you are able to overcome the crisis. There are certain factors which you must look in to in order to understand whether a certain lawyer or law firm can take care of the situation that you are facing. Here, we are going to suggest some ways in which you can recognize the best firms near you and take their help without burning a hole in your pocket. Since the debt consolidation loan market is exceptionally crowded with so many lawyers offering to help, the choice can be a difficult decision to take. When you are following the tips provided here, it will become easier for you to make the right choice which is specifically good for your situation.

2. The better business bureau

One of the best ways to find out whether a certain debt consolidation lawyer can help you out is to check whether they are listed by the better business bureau. This website has a vast listing of all the companies in different field including how well they are being accepted by the consumers to give you an idea about what you are heading for. The consumers can check the rating and even the complaints that have been officially and unofficially launched by other consumers against that company. Going through these details will help you out to choose the right lawyer as the information you need, will be transparent and authentic enough. You can also filter or narrow down your search with the help of this website when you are trying to find a suitable debt consolidation lawyer. The debt consolidation reviews that the agency or company have received will give you a fair idea about their consistency and standard of service.

3. Affiliation and non-profit status

In order to make sure that you are going to an authentic company who are legally acclaimed, checking their affiliation is very much important. The law firm and the lawyers who are going to work for you must be registered to the industries like the national foundation of credit counseling. Their affiliation is the recognition of their service and has been earned through their work and hence will give you a fair idea about whether they are well versed with the work and services they are providing. There are many non-profit companies as well which can help you out in such a situation. However, the legitimacy of their non-profit status must be checked before you get into any kind of contract related to the service. A genuine non-profit agency will have certifications supporting their status and will be willing to share them easily. Any company which hesitates to produce these certificates despite claiming to be a non-profit organization can be a cause of suspicion, and it is best that you avoid getting into any kind of deal with them.

4. Avoid companies claiming a religious affiliation

There are numerous companies which claim to have a certain religious affiliation, and they are often trying to attract customers based on that. They try to gain the trust of the customers based on shared religious belief but in most cases, such companies are not genuine, and neither is their belief. A law firm offering debt consolidation services will know their work well and will not need to resort to such stunts in order to get the clients. If you come across any such agency, you must avoid them and look for the ones which only offer services based on professional grounds. You can learn about the genuine companies from your friends and families who have opted for the services before, and they can recommend you the agencies. You can also check the various consumer forums to get an idea about the law firms which you are considering.

5. Negotiate face to face

Nothing works better than seating and discussing your requirements with the company representatives. Every case is different and so will be the approach of solving it. When you meet the law firm representatives, and they understand your situation they will be able to give you an idea about how best you can proceed with the legalities. You can even get the idea about the entire cost of employing the agency at your service when you opt for such negotiations.  You can easily set an appointment with your top three choices, meet them and understand their approach to the case and once you have done it, you can easily sort the best among them.

Conclusion

There are different types of debt consolidation policies, and it is important that you are opting for the right agencies which offer the best solution for you. The tips mentioned above are tried and tested for ages and can help you out regarding choosing the best lawyers at your service. Getting help from the top-notch debt consolidation lawyer will ensure that you are able to avoid any kind of debt crisis that you are facing with your business.

Also read:

1. A quick guide to debt consolidation loan; Process and policy and
2. Using personal loans to cover debt consolidation

Image credit- Canva

In simple words, a debt consolidation loan means a loan taken to pay off earlier or existing loans and liabilities. This loan helps in refinancing the past debts of an individual, a business or a nation as a whole. In many countries, the government also uses it to pay off various corporate loans or to get over its fiscal policy. Such loans prove to be helpful when an individual or a particular entity wants to have a systematic way of paying off his entire loan only to a single debtor.

Process and Policy

The method of applying for a debt consolidation loan varies from nation to nation as per the country’s rules and regulations. In some countries, it may even vary from region to region depending upon its governance.

Usually, an individual debt comprises of housing loan, credit card bills, medical bills, and education loans, etc. On providing the listed set of documents, a debt consolidation loan is given by a lending and secured institution. The receiver of this loan can then pay off this loan in installments within the desired period (usually a month). These consolidations loans, however, charge a specific rate of interest, fees, points, etc. on the amount borrowed.

Eligibility

Not all individuals can apply for such a loan; there are certain constraints to it. The following factors are taken into consideration while approving these loans:

• The individual should be an earning person, and his salary should be little more than the total cost of his installment.
• He should be an adult and must complete a certain age as per the country’s rules and regulations.
• He should not be bankrupt which means that he should have a certain amount of savings and should be earning a favorable income to maintain a balance between his personal life and financial stability.
• Other factors such as the desired credit score, residential stability, job stability, etc. also matter in general but may differ from nation to nation.

Strategy

Many times, it happens that even after several attempts an individual fails to get his loan. In this case, he can follow the following ways to get one instantly:

• Online application – In the modern times, there is nothing that one cannot find online. The internet has access to almost each and everything today. You can search for online loan providers as there are many available in the market. Many times, online loan applications are straightforward, less documentation is needed, and approval also is quick; hence it’s not a bad option to apply online.
• Approaching local banks – Local banks are the one who usually does not ask for a lot of documents as the account holders are a part of their bank since a long time due to which the application process is applier friendly. The bank considers its account holders as loyal people as they have an association with the bank for a long time it grows the chances of approval of a debt consolidation loan.
• Securing loan against property – Though, this option is not recommended, but if one is urgently in need of a debt consolidation loan then he can secure his assets such as a house, vehicle, jewelry, etc. and apply for the desired loan.

Factors leading to a denial of debt consolidation loan

Sometimes it can happen that even after many attempts the individuals’ application for a debt consolidation loan is rejected. The following are some of the possibilities for the rejection of application:

• Low income: One of the main factors for denial may be low income. If an individual has a favorably low income to repay his debt amount his application can get rejected on his income basis. The approval of a debt consolidation loan needs certain income requirements, and if it does not meet its need, it’s denied.

• A bad or low credit score: If an individual has a poor score his application is rejected as debt consolidation loan requires certain criteria of credit score so that they can be able to grant the loan. Also, if the applier has a history of late payment of dues or no payment at all, there are high chances that the bank will reject his debt consolidation loan application. The lending institutions generally check the credit background of the applier and offer them a loan. 

• No security against loan: Sometimes it is vital for an individual to secure his loam against some of his assets so that the lending institution can recover their loss in case the applier fails to repay his debts. So, if the borrower does not have any asset to secure against his loan his application the bank can reject the loan. 

• High debt: Usually the lending institutions offer debt consolidation loan on a particular ratio against the income of an individual. In case the income of the individual does not match with the desired ratio and his debt ratio is too high the authorities deny lending debt consolidation loan to any such individual. 

• Stability factors: The lending institutions generally look up to certain stability factors when it comes to approval of debt consolidation loan. In this case, the bank considers the stability of the borrower regarding professional background and residential changes .E.g., if they notice that the individual is a frequent job changer, then there are chances that his debt consolidation loan application can get rejected.

From the above overview of the debt consolidation loan (DCL), on the whole, we can say that this is an excellent option for individuals who are stuck up in different loans. Debt consolidation loan offers a significant amount to the individuals so that they can pay off their several small loans. Usually, not much documentation is needed for applying for such loans, but you must keep certain factors in mind before applying for the same.

Image credit- Canva

Consider taking for a personal loan or debt to cover debt consolidation if you find yourself in debt, having to make payments to multiple creditors and paying different interest rates.

This type of loan can definitely help you with debt management skills. The even personal loan is categorized as a consolidation loan, which provides you fund to just pay off some of your current debts. Instead of coming up with multiple payments at various rates of interest, you can easily make single monthly payment for each month and pay off the personal loan. There are multiple options available for you to follow and steps designed to get the personal loan at the best rate possible.

1. Get the personal loan for debt consolidation

Even though there are multiple avenues designed for personal loan approval, you have to take your time in researching and come up with the best option. Borrowers who have a higher credit score can easily qualify for some of the better loan terms. On the other hand, you have borrowers with lower credit score too. They might find it hard to get the personal loan sanctioned. So, they have to work hard in researching to find some of the most favorable offers when it comes to interest rates, loan amounts, and fees.

2. Easy directions to follow

There are some directions available on ways to consolidate debt with a help of the personal loan. Once you follow the rules, there is no looking behind.

3. Start checking credit score and report first

Even before you head for a loan, you need to be suitably aware of credit score. Each lender comprises of its own credit requirements for borrowers, but all lenders will check credit.

• • You need to be aware beforehand if your credit report has any negative information in it or not.
  • Federal laws give you the opportunity to actually entitle a free copy of credit report from any one of the major credit bureaus, Experian, Equifax and TransUnion for every 12 months. You can order for that online by clicking at their respective sites. You can check the credit rating agencies here.
  • You can further purchase the credit score without paying a single cost from credit card firm, free online service or bank. You can use Credit Karma or Credit Sesame to help you big time in this regard.

4. Check out for lenders offering you your much-needed amount in personal loan

There are some companies which offer personal loans only for the sake of debt consolidation, within an amount of $3000 to $100,000. Borrowers who are lucky enough to have excellent credit, they can try out the credit card consolidation to 0% APR credit card. On the other hand, for borrowers with a good form of credit, peer to peer lending platforms can offer personal loan starting from $2000 to $35,000. In addition to that, credit unions will provide you with lower requirements than banks for the consolidation loans.

5. Start listing the credit card and loan balances

This seems to be the next step of procuring a personal loan to cover debt consolidation with ease. For that, you can try heading for debt consolidation reviews to get an idea about the debt consolidation loans and other related information, subject to vary from one company to another. You have to work hard to include some monthly payments and annual percentage rates for each debit over here. You have to understand in details about each owned debt and how much money you have to borrow for repaying the debt.

6. Try going for the debt consolidate calculator

Here, you need to enter the debts that you are planning to consolidate into an online debt consolidation based calculator. It will help you to see the ways in which personal loan can actually benefit you. Even though single monthly payment might help in saving some time, but it is also quite important to find a loan with some favorable terms and rates.

7. Try shopping around for lenders with favorable interest rates

You can try checking out with other lenders which provide personal loan rates at minimum rate of interest and less other charges. This way will help you to currently check the rates available online with no such impact on the present credit score.  Then you have other online platform as well which presents you with fixed rates under personal loan with autopay option. This service will help you to check the rate without any risk at all.

8. Best personal loan application depending on your situation

After you shopped around and decided on the type of loan, it is time to apply for it. Now you have the right to use funds for paying off the current debts. The entire process might be a bit time consuming at first, but you will definitely get a hang of it for good. For any other help, personal loan lenders are always available with step by step help.

9. Avoid adding extra debts on present ones

After you have successfully paid off all your debts, there are high chances of temptation to use some newly available credits for making next set of purchases. Yes, it is understandable that you are trying to keep credit cards in play, but it is quite unwise to charge purchases which you won’t be able to pay easily each month. Charging up your current paid-off cards will force you to be back in the jungle of debt. If you don’t want that, avoid adding those extra debts in your kitty as of now!

10. Always keep old accounts active

Do not ever try to close credit card based accounts once you paid it off. Part of the credit score solely depends on the length of credit history. So, the longer you have an active account under your name, the better it might be for the credit score. Also pay the credit balance, if any, time to time and utilize maximum 30% only of the card limit for the better credit history and credit score.

11. Make the right choice

Whether you are planning to use the personal loan for the credit card based debt consolidation help or willing to pay a mix of credit cards and loans, you have to shop around for the best rates you can qualify for. Also remember, just because you are consolidating, that does not mean you will pay less in long run.

Image credit- Canva