Debt consolidation refers to the process of converting multiple high-interest monthly credit card bills into a single, lower-interest debt consolidation loan, repayable at a fixed rate on a specific day each month for the life of the loan.
Your debt consolidation loan should be large enough to pay off all your debts at once, leaving the loan repayment as your sole monthly debt obligation.
Now, consolidating your debt doesn’t mean it has gone away. It just means that you’re paying it off differently – ideally at a lower interest rate, and at a lower monthly cost.
In fact, for a debt consolidation loan to make the best sense you’ll want good enough credit to qualify for a loan with an interest rate no higher than the rate on the credit cards you’re trying to pay off.
But not to worry. Even with less than perfect credit you can still maximize the advantages of a debt consolidation loan, particularly with the help of Level Financing’s unique debt management solution, the Debt Consolidation-Settlement Loan.™
Level Financing takes debt consolidation one giant step further. Introducing our proprietary Debt Consolidation-Settlement Loan.
By combining the advantages of a debt consolidation loan with the value of our debt settlement plan, we make it possible to become debt-free in just 6 to 12 months.
That’s over a whole year faster than with the acknowledged next-fastest means of retiring unsecured debt – the traditional debt settlement process.
We pair our traditional debt settlement process with a low-interest personal debt consolidation loan.* This hybrid solution lowers not only your total debt amount, and pays it off in a single lump sum, but leaves you with only one monthly bill to worry about, which you repay at a lower interest rate than any credit card would offer.*
Less overall debt. Fewer monthly bills. A lower (fixed) interest rate. And freedom from debt up to 25 times faster than through even traditional debt settlement.
That’s the power of our hybrid Debt Consolidation-Settlement Loan. What you bring, however, is just as critical.
There’s no magic to eliminating debt. It takes financial discipline. We can offer the program, but ultimately only a sustained personal commitment from you makes a consolidation-settlement strategy succeed.
First, you’ll need to continue paying at least 60%-70% of your previous minimum monthly credit card amount, just as with a traditional debt settlement plan. Then you must control your spending by resisting the temptation to run up further credit card debt during the period of your loan repayment.
Taken together, our hybrid plan, along with your commitment to your own success, gives you an unparalleled chance to become debt-free faster than any other means short of, well, winning the lottery.
By the way – our Debt Consolidation-Settlement Loan is also the fastest way to rebuild your credit score. Since your debt will have been retired faster, and you’ll have paid off your low-interest loan in 6 to 12 months, you’ll see your credit score begin to climb quicker than ever. As always, re-establishing good credit includes opening one or two new credit accounts, using them responsibly, and paying them promptly.
Level’s hybrid Debt Consolidation-Settlement Loan puts you back on your financial feet fast, even as you’re paying off your loan.
Level Financing’s counselors are accredited in analyzing personal finances, and fight every step of the way to secure your goal of financial freedom. This includes advocating on your behalf not only with your creditors or lenders, but, importantly, with you yourself at times.
We know that learning a new discipline isn’t easy, and we consider it our responsibility, as well as our privilege, to supply you with the encouragement, resolve, and reliable analysis you’ll need to get where you want to go.
The answer here is yes and no. Receiving a debt consolidation loan does not negatively affect your credit unless you default on the loan. That’s why we ensure that you’re able to pay at least 60%-70% of your typical monthly credit card bill as part of your loan qualification criteria.
However, be careful about the credit accounts you’re consolidating. Closing them too quickly may result in a credit-score drop because the average age of your accounts will also drop. Meanwhile, your credit utilization ranking will increase. Each of these factors contributes negatively to your FICO score.
Keeping old accounts open after transferring your debt to a new line of credit makes avoiding a drop in your credit score likelier.
You should be aware of both the benefits and potential downside to the debt settlement process. One of the biggest misconceptions about debt settlement is that it will affect your credit report well into the future. We have not found this to be necessarily true.
Naturally, ceasing payment to your creditors results in becoming delinquent on your accounts, and accruing late fees and additional interest. Your credit score will temporarily be negatively affected.
But what we’ve found is that once your debt has been settled your credit score will start to increase. In fact, customers who have finished the Level debt consolidation-settlement program often discover that six months later their credit score is equal to, or even higher than, what it was before the remediation began.
Forgiven debt is considered taxable by the IRS if it’s over $600. This means you will likely owe taxes on the forgiven or canceled amount. If you settled $16,000 worth of debt for $8,000, for example, then $8,000 was forgiven, is likely taxable, and will need to be reported to the IRS as ordinary income.
Since 2009 Level Financing’s experienced credit counseling experts have helped more than 20,000 people climb out from under the oppression of credit card debt.
Our fully accredited debt relief experts are here when you need us, offering customized debt relief solutions and personalized customer service to help guide you toward achieving the debt-free lifestyle you deserve.
Call us at 888-619-1770, or simply click below to begin your journey to financial freedom.
Knowledge is power, and realizing your debt-relief options is the first step toward achieving financial freedom. The next step is to take action.
See if you qualify for a Debt Consolidation-Settlement Loan by taking the brief quiz below.
A hybrid consolidation-settlement plan is not always the best solution for every need. Learn about our alternative debt-relief options, including our Debt Management Plan and traditional Debt Settlement Plan.