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Debt consolidation - How to consolidate multiple debts and save money

Debt consolidation replaces your unsecured debts with a new affordable monthly payment plan.

The strategy is one of the best debt solutions for people who can't afford to pay high interest on multiple credit cards, personal loans, payday loans, medical bills, etc.

How Does Our Debt Consolidation Process Work?

Once you contact us:

  • You will work with my assistant, who will take down the details of all your debt collectors.
  • I will review your file and contact your creditors, informing them they cannot harass you anymore.
  • Once they know I am representing you, most creditors will consolidate the debt at favorable terms.
  • I will have you work with my assistant to make payments to the creditor.
  • You will be debt-free in six to nine months.

How Can I Reduce Your Debt Worries?

I have helped people like you:

  • Reduce monthly payments.
  • Make one monthly payment to your creditors.
  • Eliminate late fees, advance fees, and extra fees.
  • Reduce or eliminate collection calls.
  • Reduce the annual percentage rate.
  • Avoid lawsuits.

What Other Services Does My Team Offer?

What is Debt Consolidation?

Debt consolidation is rolling one or more debts into one by taking a new loan to pay off the older debts. For example, you can get a debt consolidation loan or a balance transfer credit card with better loan terms and use it to pay off your existing debts.

Ideally, the new debt consolidation loan should have a lower APR than what you're paying now. This can help you save on interest, lower your monthly payments, and pay off your debt faster.

What Debts Can You Consolidate?

  • Credit card debt
  • Payday loans
  • High-interest personal loans
  • Debts in collection
  • Medical bills
  • Utility bills
  • Student loans

How Much Can You Save With Debt Consolidation - Probably Thousands

Suppose you have three credit cards and owe a total of $20,000 with a 22.99% annual rate compounded monthly. You would have to pay $1,047.37 monthly for two years to pay off your debt. Over time, this will cost you $5,136.88 just in interest.

If you consolidate the credit card debt into one loan at an 11% annual rate compounded monthly, you would have to pay $932.16 monthly for two years to pay off the loan. This means that you would have to pay an interest of $2,371.84.

Hence, by consolidating, you could save $2,765.04 over the life of the loan.

Reasons Why Debt Consolidation is One of the Best Debt Solutions

A debt consolidation program can be a great option to pay off multiple credit card debts or other loans because -

  • It doesn't have strict eligibility criteria. You can qualify if you're 18 and make timely payments to creditors.
  • The process is quick and easy.
  • There's no collateral.
  • There's a fixed interest rate.
  • You can qualify without an excellent credit history and credit score.
  • You will have a fixed monthly payment and be able to budget accordingly.

When is Debt Consolidation Good for You?

Consolidating debt is great, but this debt relief option is not for all. If misused, the strategy can backfire and affect your credit score. So, before you dive into this option, it's essential to understand if you're the right candidate to reap the benefits.

Debt consolidation is an ideal strategy if -

  • You're disciplined enough to curb impulsive spending habits.
  • You're determined to avoid running up more debt.
  • You have decided to live within your means from now on.
  • You want to avoid borrowing money from banks or family members.
  • You want to become debt-free within six months.

Consider These When Choosing a Debt Consolidation Company

  • A good debt relief agency should be honest and open with you and be happy to give you a clear, detailed list of all the services it offers. If the company of your choice doesn't answer your questions or fails to satisfy your queries, you should look elsewhere.
  • A good debt consolidation company will give you honest, helpful advice on handling money and using credit wisely. The service provider should also assist you in making a budget and give you educational materials.
  • Even if you don't sign a contract with the company, the education service should be free and easily accessible.
  • The agency should have been in business for at least seven years, have a high BBB rating, and have enough positive testimonials and customer reviews.

Why Should You Choose Our Law Firm's Consolidated Credit Service?

Here are a few reasons for choosing OVLG to be your debt consolidator -

Top 3 Debt Consolidation Options

You have three options for debt consolidation -

Low-interest Debt Consolidation Loans

To combine your various high-interest debts into a single manageable monthly payment, you can obtain a debt consolidation loan with a low-interest rate from a bank or credit union.

Lenders can send the money to your bank account or pay your creditors directly if you get approved for the loan.

Requirements for Debt Consolidation Loan

  • You should be 18 years old.
  • You shouldn't be involved in bankruptcy or foreclosure proceedings.
  • You'll need a credit score of about 650 (although some lenders accept credit scores of 600 or even less)
  • Your debt-to-income ratio should be at or below 45 percent (higher DTI results in higher interest rates or disapproval.)

Pros & Cons of Debt Consolidation Loan

It comes with a fixed interest rate. So, you'll know what you must pay each month.Personal loans for debt consolidation are most useful for those with good credit.
It is unsecured, so a creditor won't have any collateral to seize if you fail to make timely payments.If your credit score is below the 580 mark you might not qualify for a loan.
In most cases, you can pay off the loan earlier than your payoff date without extra fees or penalties.You'll likely need to pay between 1% and 5% origination fees. Sometimes it can be as much as 10%.

Top 5 Best Debt Consolidation Loan Providers

  1. SoFi - Best for No fees
  2. Upstart - Best for fair/average credit
  3. Prosper - Best for joint applicants
  4. Marcus by Goldman Sachs Personal Loans - Best for paying creditors directly
  5. LightStream - Best for good to excellent credit

Credit Card Balance Transfer

The balance transfer method is great for consolidating debt. You can transfer your accrued balance on high-interest credit cards to a card with a low-or-no-interest introductory offer.

However, you must remember that the offer may expire after 12 to 18 months. Once the offer expires, the interest rate may bump to around 21 or 22% — not rates you want trapped in. So, if you use this approach, pay off the balance before the interest rate spikes.

Requirements for Balance Transfer Credit Card

  • You must be at least 18.
  • Your credit score must be 670 or higher.
  • You need to have a history of on-time payments.
  • Your overall debt-to-income ratio should be at or below 43%.
  • You'll need to report your income to show you can repay the money a card issuer lends you.

Pros & Cons of Balance Transfer Credit Card

You can pay off your consolidated debt at 0% interest during the introductory period of your new card.The strategy will only work for consumers whose credit score is at least 670.
Getting a new card to pay off your credit card debt may come with travel or other monetary perks. You must be approved for enough credit limit on your balance transfer card to handle all your debt.
You’ll enjoy a simplified payment process.You’ll need to pay a fee of 3%-5%.

Top 5 Best Balance Transfer & 0% APR Credit Cards

  1. Wells Fargo Reflect Card - Best for the longest 0% period for transfers and purchases.
  2. Discover it Balance Transfer - Best for a Long 0% transfer period plus bonus cashback.
  3. Citi Simplicity Card - Best for a long 0% period on transfers plus no late fees.
  4. Citi Double Cash Card - Best for a long 0% period for transfers plus flat-rate cashback.
  5. U.S. Bank Visa Platinum Card - Best for Long 0% period for transfers and purchases.

Home Equity Loan or HELOC

If you are a homeowner with enough equity and a good credit history, you can borrow some of your equity at an affordable rate to pay off your debts. Many home equity borrowers use the money to pay off higher-interest credit card debts or personal loans.

Requirements for Home Equity Loan or HELOC

  • You need 15 percent to 20 percent equity in your home.
  • Your credit score must be in the mid-600s (some lenders accept credit scores of 620 or less)
  • Your DTI should be 43% or lower.
  • You need sufficient income to repay the loan.
  • You need to have a reliable loan repayment history.

Pros & Cons of Home Equity Loan or HELOC

You'll get a much lower monthly interest rate.A foreclosure is possible if you fail to make timely payments.
They have fixed monthly payments.To qualify, you must prove you have enough income to repay your borrowed money.
You won’t require a high credit score to get a low-interest-rate loan.Equity loans and HELOCs require additional fees and costs. Occasionally lenders may waive these fees.

Top 5 Best Home Equity Loans or HELOCs for Debt Consolidation

  1. Discover - Best for low fees
  2. Flagstar - Best for large HELOCs
  3. Truist - Best fixed-rate HELOC
  4. U.S. Bank - Best for borrowers with good credit
  5. Connexus Credit Union - Best introductory rates

Will Debt Consolidation Affect My Credit Score?

Debt consolidation loans hurt your credit score, but it's only for a short time. This is because a hard inquiry is usually made on your credit when you apply for a loan, which can lower your score for a few months. But the overall effect on your credit should be good if you ensure to pay on time.

Can I Use My Credit Card After Debt Consolidation?

Our credit card consolidation service is designed to help you alleviate your financial burden by lowering your interest rate on credit cards. They don't change how credit cards work or require you to close your accounts.

Some people choose to close their credit cards after consolidating debts as this can help decrease the risk of getting further into debt. But it's not mandatory. Just like you can choose where and how to consolidate debt, you can decide whether or not to keep your credit card accounts open.

Should You Consolidate Debts in Collection? Is that Possible?

The answer is you can and you should.

You're likely to get sued when you ignore collection accounts for more than a month or so. When you get sued, you'll very likely lose the case. That means the collection agencies win the legal right to garnish your wages or impose a lien on your property. In other words, they get to make you pay them.

We are one of the best-rated debt consolidation companies that can help you avoid that situation. We can negotiate with collection agencies and create a repayment plan where you can pay off the amount you owe in easy monthly installments, helping you avoid lawsuits and extra fees.

Can You Qualify for a Mortgage After You have Consolidated Your Debt?

If your credit score was below 500 before using debt consolidation services, you might have difficulty qualifying for a mortgage. Federal Housing Administration (FHA) mortgages are standard among new buyers and require that you have at least a 500 credit score. Conventional private mortgages, the main alternative to FHA loans, have higher requirements: usually 620.

How Can Debt Consolidation Stop Wage Garnishment?

It's simple. Once you pay off your creditors, they don't have a reason to garnish your wages. Even better, the courts will usually take it further and issue a release judgment requiring them to stop!

At that point, collectors or creditors who continue to garnish your wages will violate the law, and you can turn the tables on them by taking legal action! In my experience, that's optional, as most collectors will stop when ordered.

Can debt consolidation stop wage garnishment while you still owe on your loans? You can, but you may not like how it works.

If you plan to use debt consolidation to stop wage garnishment, your best bet is to save a lump sum from devoting to the process.

Why? Without something to put down, it's much more challenging to negotiate with creditors. Creditors will always want the best deal they can get, and wage garnishment is a pretty good deal for them. But putting a chunk of money down on your debt consolidation offer will put you in a better-negotiating position.

For example, we call your creditor to make an offer on $10,000 in debt. Which offer will your creditor most likely accept: no money upfront or $1,000? We have a better chance to stop wage garnishment with the cash offer. That's how it works.

Can You Consolidate Debt When You Don't Have a Job?

Well, there's good news and bad news.

The good news is that you can consolidate bills even when unemployed. It can still be a good plan.

The bad news is that the best debt consolidation loans won't be available. Without a reliable source of income, debt consolidation loan companies typically don't extend consolidation loans with low-interest rates due to the risk the consumer poses.

But another option is to consolidate your debt by transferring your loan balance to a credit card with a low introductory interest rate.

In that case, you will need to have the plan to pay off your debt within 12 to 18 months, or you could face very high-interest rates on your remaining balance.

With a debt consolidation plan, you must prove your ability to make the required monthly payments. That's what makes being unemployed such an obstacle.

Can You Qualify for Debt Consolidation With Bad Credit?

You may wonder, "I need to consolidate debt, but my credit is pretty bad. Will I qualify?"

This is a common question. The answer is yes. With a consolidation program, you don't need a good credit score or credit history to qualify. You can consolidate all your debt, even with bad credit. However, there's a catch.

With bad credit, you won't get qualified for a balance transfer credit card, and you will need to settle for a bad credit debt consolidation loan which usually comes with a high-interest rate. Sometimes the rate can be so high that it may not be worth it to go down that road.

But don't worry - you have some options left. You can try boosting your credit score, looking for lenders who consider factors other than credit scores (job history, income, and education), or having someone you know cosign the loan.

If these ways aren't viable, you have other debt-relief options, like a debt management plan (DMP). You can also try debt settlement and bankruptcy, but those options should be used as a last resort as they can significantly impact your credit score.

Alternatives to Debt Consolidation

Debt consolidation is a great strategy, but it's not for everyone. If your financial situation makes it hard for you to try this road, here are some other avenues for you -


You can consider a debt management plan if:

  • Between 15% and 39% of your annual income goes toward your unsecured debt.
  • You have a steady income and could pay off your debt in five years if your interest rate was lower.
  • You have more debt than you can consolidate.
  • Your credit score isn't high enough to get consolidation products like a credit card with a balance transfer or a low-interest personal loan.

Debt Settlement

You can consider debt settlement if -

  • Your DTI is more than 50%
  • You have large unsecured un-resolved debt.
  • You're often late on debt payments.
  • You have trouble making the minimum monthly payments,


You can consider bankruptcy if -

  • You have much more debt than the means to pay it off.
  • You have tried other debt relief methods, but your debt problem remains.
  • There's a high chance you'll lose assets to your creditors.
  • You are unemployed and without the opportunity of employment soon.

Oak View Law Group has done everything it can to help me through the process and save me a lot of money. They are always there for you when you need them, and I cannot thank them enough for everything they've done for me.See More ...

Client - KD

Saved - $7645
client KD
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