If you’re planning to choose a debt consolidation agency for Debt Management, UAE, you need to have a basic understanding about what it actually is and what is the best method to pick as per your debt managing needs.
Debt consolidation is an efficient and convenient process that allows you to make single monthly payments rather than paying all your creditors by dividing the debt.
Hiring the right agency that provides genuine services and a better debt consolidation plan is equally important as they offer multiple debt solutions that can give you peace of your mind.
That’s why we have come up with a list of 5 things to consider debt consolidation to help you know more about it and understand the process too.
1. Replacing your smaller debts with a larger one
Before considering a debt consolidation plan, you should know that it doesn’t reduce your debts however it allows you to replace all your smaller debts with a larger one by enabling you to process single monthly payments instead of dividing your payments to all the creditors.
2. Sets a plan for Debt Management
They provide debt management as they help you set up a plan with your credit card companies and negotiate terms with your creditors to ease the payment process. They basically come up with a good repayment plan so that you can manage your time and debts efficiently.
3. Debt Settlement
Sometimes the lenders agree to receive a smaller amount to settle the debts in case if the debtor’s files for bankruptcy and other cases. However, most of the debt settlement firms aren’t genuine and can leave you in a more devastating situation.
4. Know your Options
Before choosing a debt consolidation agency, you should know the alternatives too such as personal loans, accessing credit card, and home or auto financing. They are unsecured loans but they can be considered as options too. You can also go for secured loans but they have high-interest rates.
5. Bad Credit or Bankruptcy
Debt consolidation doesn’t work in case of bad credit or bankruptcy. If your credit scores are bad or if you have been sued over your debt, then you might need to have a better debt plan to fix your expenses and budget issues first. You can even opt for a credit counseling agency to attain some guidance on your credit cards and bankruptcy.