What is accelerated debt consolidation?
Are you burdened with debt? Do you find it more difficult every month to meet the minimum payment for your debt? Your debts accumulate every month, the call of creditors makes you feel very depressed; and you pray every day hoping that a miracle will happen and free you from debt. If you are in a bad debt situation, accelerating debt consolidation can be the best solution for your debt dilemma.
In debt consolidation, you combine many, high-interest loans (debt) into a loan with a single monthly payment at a lower interest rate. Debt consolidation allows you to pay more principles every month, often decreases monthly payments, and allows your debt balance to be deleted more quickly.
Your debts can be categorized into two types, unsecured debt and secure debt. Unsecured debt is money that you borrow from your creditors without needing any collateral. Unsecured public debt includes credit cards and personal loans. Secured debt, on the other hand, is a loan or financial package that is only approved with a guarantee of your collateral in exchange for a certain amount of money and the creditor has a lien on the guarantee guaranteed. Common types of guaranteed debt include mortgages, car financing, and loans to personal property. If you fail to pay your creditors in this case, you will lose your car or house or property.
Accelerated debt consolidation stops at the same rate as regular debt consolidation but only counts towards your unsecured debt. While there are some exceptions, most accelerated debt consolidation programs will not cover your guaranteed debt; they will only take your unsecured debt.
When you sign up for an accelerated debt consolidation program, counselors from debt consolidation companies will first understand your current financial situation and they will classify all your debts into safe and unsecured debt. The counselor will only work on your unsecured debt and propose a payment plan after communicating and obtaining terms and conditions from your creditors.
If you have a relatively bad credit score and large, unmanaged debt, accelerated debt consolidation may be your best choice because this type of debt consolidation only takes on your unsecured debt, which is generally a smaller amount compared to the outstanding debt guaranteed (home loans) or car loan amounts are usually greater than credit card balances) and can allow you to put in place a debt consolidation plan with a short period of time, regular debt consolidation usually requires a longer process.
Most unsecured debt is high interest debt (credit card interest rates can range from 10% -18% and personal loans may have interest rates as high as 12%), so it is good for you to put in place a plan to deal with this high. interest debt as soon as possible to avoid further worsening the situation. And accelerated debt consolidation can be your best choice for this purpose.
Accelerated debt consolidation is slightly different from regular debt consolidation; it only considers your unsecured debt. Accelerated debt consolidation can be your best choice if you are in a critical financial situation and really need a plan to place and control your debt.