Understanding Debt Consolidation Benefits And Debunking The Ascend Finance Scam Controversy

Anyone can fall into debt not by choice, but accidentally. You may fall prey to huge tax debts or monthly interest payments. During such situations, a deep knowledge of debt consolidation may help you out of debt trouble.

Debt consolidation helps you to negotiate for a lower interest rate. Your financial conditions determine how much benefits your debt consolidation choice brings to you. Your eligibility and interest rates depend on your credit scores.

In many cases, companies make big claims to attract more customers. Before taking the offer of any debt settlement companies, you must read the reviews about their claims on some global financial websites.

Ascend Finance is one of the top companies that provide personalized assistance for managing debts, but they are caught up in a controversy regarding the claims that they have made about their proprietary algorithms. You can check the review on Fox Chronicle to clearly understand the legitimacy of Ascend Finance scam.

Read the below enlisted facts about debt consolidation before you apply for any debt relief options.

1. Combines your debt but does not eliminate it

The key feature of debt consolidation is to combine your various existing debts to bring them under single debt umbrella. Debt consolidation makes you eligible to take a new loan to pay off your other debts at once through single monthly payments at a reduced interest rate. This way you can easily, affordably, and quickly pay off your debts to become debt-free.

Debt consolidation is a new refreshed debt, but not an option to waive off your debts or reduce the amount you owe. It helps you to handle a new monthly payment, which you can afford to pay monthly through years of disciplined payments.

2. Modifies your repayment terms

One of the key things to understand about consolidating debt is that you might be able to change your repayment terms in case you opted for a personal loan. After a few repayments, you can either ask your lender for a lower interest rate debt or a longer repayment term which lowers your monthly payments.

3. It is not your only consolidation option

Debt consolidations are not the only way to consolidate and pay off your debts. It is the most popular option due to its simple structure, but it may not be suitable option for everyone. You may choose from other debt relief options like balance transfer credit card, debt management programs, home equity loans, budgeting, and reverse mortgage for more cost-effective and economic strategies.

Each of these options has their own pros and cons, so you must carefully research them all before picking a consolidation and refinancing method.

4. It comes with upfront fee

Typically, debt consolidation comes with a processing fee like other debt consolidation and management programs. This upfront fee tends to increase your overall debt consolidating cost. Some lenders may charge nominal fees while others may require you to have a good credit score. You must evaluate different lenders’ quotes to decide whether your savings from debt consolidation is worth spending the upfront fee.

Debt consolidation can lower your credit score and affect buying a home. You can take a personal loan to pay off student loans or medical debts, or tax debts.

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