Credit Counseling Debt Consolidations
A credit counseling debt consolidation loan is available for those that have multiple debts and want to combine those debts into one lump sum and make only one low monthly payment. Credit counseling debt consolidations utilize credit counseling as a way to prevent the loan applicant from adding more debt to his/her name once a credit counseling debt consolidation loan is dispersed. The credit counseling debt consolidation loan counselor reviews a detailed credit, debt and income history of the applicant to determine where weak and strong financial areas are. The weak areas are addressed and a new budget lifestyle plan is created.
In order for a credit counseling debt consolidation plan to be successful, the debtor must make an honest commitment to themselves. They must truly want to change their bad habits and replace them for new ones that do not include the use of credit for reliance as a monetary source. Credit counseling debt consolidations can be a wonderful option for those ready and able to make such a commitment. If a credit counseling debt consolidation counselor evaluates the financial history of an individual and decides that they are ineligible for a credit counseling debt consolidation loan, then the applicant has other options.
If they are adamant about paying off all the cards at once with some sort of loan, then they may be eligible for a home equity loan or line of credit. Home equity loans are secured by pledging one's property as collateral for repayment of the loan. Some credit counseling debt consolidations require the use of home equity as collateral, others require only good credit and a stable income. The credit counseling debt consolidations counselor is the one who makes the offer concerning additional requirements. A credit counseling debt consolidation loan is usually the first phase of an attempt to get out of debt.