Business consolidating loans
You consult a company that promises to lower your payment to 0 per month and your interest rate to 9% by negotiating with your creditors and rolling the two loans together into one. Who wouldn’t want to pay 0 less per month in payments?
But here’s the downside: It will now take you 58 months to pay off the loan.
Something has to change, and you’re considering debt consolidation because of the allure of one easy payment and the promise of lower interest rates. But the truth is debt consolidation loans and debt settlement companies suck even more. In fact, you end up paying more and staying in debt longer because of so-called consolidation.
Get the facts before you consolidate your debt or work with a settlement company.
Once their fee is accounted for, they promise to negotiate with your creditors and settle your debts. Well, the debt settlement companies usually don’t deliver on helping you with your debt after they take your money.
Even if you qualify for a loan with low interest, there’s no guarantee the rate will stay low.So basically, your debt would go from ,000 to ,000–60,000.If that’s not bad enough, fraudulent debt settlement companies often tell customers to stop making payments on their debts and instead pay the company.Debt settlement companies also charge a fee for their "service." Often, the fee is anywhere from 15–20% of your debt.Think about it this way: If you owe ,000, your settlement fees would range from ,500–10,000.