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Memphis Associates Reviews on Debt Consolidation

It feels like the debt never ends, and you finally want to get back on your own two feet again. If you are supporting debt, it can limit your financial ability to save and plan for a future– like buying a home. 

Learn how to consolidate your debt 

When debt feels impossible to handle on your own, it could be a great time to turn to a financial organization to help you regain control of your finances. When you work with debt consolidation professionals, you have a resource to guide you through decreasing your credit card debt– thus improving your credit score. 

Who exactly is Memphis Associates?

The company Memphis Associates is one of the best debt consolidation companies you can work with. They can provide you with the support and reassurance you need to improve your finances. With Memphis Associates reviews, you have the ability to gain a new perspective on your debt situation and no longer feel alone. Reviews on Memphis Associates can help you understand a way out on your less than-ideal financial situation. 

Why does debt consolidation matter?

Debt consolidation matters for individuals who have struggles with their credit and difficulties managing so many credit card payments with deadlines. If you have high-interest credit card debt to pay each month, the costs can quickly become overwhelming. For many, the best option out of this situation is debt consolidation. Debt consolidation means paying off all your high-interest debt with one, lower-interest loan to save on payments each month. If you are struggling, you may want to turn to debt consolidation to help solve your needs. 

Man holding piggy bank, symbolic of consolidating debt

How to consolidate debt?

When you consolidate your debt, you are merging multiple debts including credit cards or unsecured loans into one single monthly payment. There are various methods you can use to create the best debt consolidation strategy. Keep reading to understand your options and consider the one that worlds best for you! 

Debt management plan 

Debt Management plans, or DMP, are programs in place by nonprofit credit counseling agencies as a means of getting you back on your feet. They are designed for individuals who have accumulated credit card debt or personal loans. Unfortunately, they don’t cover student loans or secured debt such as mortgages. 

Before receiving a debt management plan, you will get paired with a counselor who can ensure that it is the right choice for you. If so, the financial counselor works on your behalf by contacting your creditors to negotiate things like interest rates and monthly payments. They also try to waive or reduce any penalties. Once they do this , they will agree on an affordable monthly payment schedule that allows for you to pay off your debt. Let’s be clear, you will be paying the credit counseling agency.  

It is also important to note that you may have to close your credit cards per the request of the counseling agency and you should not apply for more credit as you’re working towards this process. 

Debt settlement 

Debt settlement companies, or debt relief companies work in a similar fashion to debt management plans (DMP’s). Typically, the third party company you work with will contact creditors on your behalf to reduce your debt. However, be informed of the risks of doing this– they may charge fees up to 25% of the settled amount. 

Debt Settlement companies aim to negotiate your payments to an amount that is significantly lower than you normally pay. However, while they are negotiating, they might ask that you stop paying your bills. Late payments will be reported to the credit bureau and remain on your credit for several years. Meaning this could actually negatively affect your credit score. Overall, debt settlement should be your last choice if you’re considering improving your debt. 

Home equity or retirement accounts 

Many may not think of this option, but you can actually borrow against your house or retirement account. Your equity is the difference between your mortgage and the value of your home. You can borrow up to 90% of that amount depending on the lender. It may be enticing to go this route, because they offer lower interest rates. However, be cautious because if you miss payments you can risk losing your home. 

Many of us have 401k accounts, to which you can borrow from as well. However, the drawback in doing this is that you will prevent your account from accumulating compounding interest and lose money in the long-run. If you don’t pay back the money in full, you can be taxed on the amount you took out and be charged with an early withdrawal penalty. With that said, save this option for instances when you are in an extreme financial emergency. 

Balance transfer credit card 

Balance transfer cards act as a great option if you want to pay off your debt quickly ( between 12-20 months). Maybe, you got a promotion or you received extra money that you want to use to pay off your debt. Either way, a balance transfer credit card is useful because they offer 0% APR between that short time period. The idea here is to transfer all your debt onto this new card and pay it off during the introductory period of 12- 20 months. 

Debt consolidation loan 

Last but not least, we have a debt consolidation loan. If you are looking for how to consolidate credit card debt, this could be one of the best solutions for you. If you find a debt consolidation loan that offers lower interest than what you’re paying on your credit cards, this is an excellent solution for you. 

How to consolidate credit card debt? Look for a financial institution who offers a loan with a single monthly payment so that you can reduce your debt by hundreds or thousands of dollars. Understand that this may not be the best option for how to consolidate credit card debt with bad credit– but do your research because you never know! 

How can Memphis Associates help me?

Maybe you’ve read through this article to find that debt consolidation is the best solution for your financial needs. If so, you can look towards Memphis Associates for debt consolidation. 

How to get a debt consolidation loan? Apply through Memphis Associates application and fill out all the proper information. Hopefully, you will be on your way towards financial freedom soon! 

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