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Illinois debt consolidation programs - Payless and get debt relief

Debt Consolidation in Illinois offers you the best mix of debt simplification and late fee elimination, along with permanent relief from creditor harassment. So, if you are an Illinois consumer with too many bills, a consolidation program could enable you to do away with your debt problems!

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How do Debt Consolidation Programs work in Illinois?

Illinois debt consolidation programs are simple. Here, you merge all your unsecured bills into a single monthly repayment plan. This repayment plan has a lower interest rate than that of your existing unsecured debts combined. So, it’s easier for you to make the monthly installments.

How to consolidate your loans in Illinois

Getting your loans consolidated here in Illinois is not difficult. All you need to decide is whether you want to do it by yourself or if you wish to seek help from a debt consolidation company in Illinois.

Consolidate your bills with a loan

If you think you can manage your debts on your own, then you can take out a consolidation loan and use it to pay off your current debts.

Illinois debt consolidation loans are available either as unsecured or secured loans. Unsecured loans don't require collateral, whereas secured loans do, such as a house, a car, or some other asset. While an unsecured debt consolidation loan in Illinois means you have to pay high-interest rates, a secured loan gives you the benefit of a lower interest rate.

Secured consolidation loans including home equity loans, second mortgages, and similar lines of credit. Refinancing your mortgage or taking out a second mortgage are usually the best, primarily because of their low interest rates, which makes your payments smaller.

Consolidating your debts with a consolidation loan can be a good option, as it does not involve the additional costs of a consolidation firm. However, the long period of the loan causes you to pay a lot of interest over time.

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Resort to Illinois debt consolidation companies

Consolidation plans offered by the Better Business Bureau (BBB) accredited debt consolidation companies are another option for the debtors willing to get their multiple debts consolidated in Illinois.

There are many consolidation companies promising to resolve your debt problems. However, it is always advisable that you go with a company with BBB accreditation.

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When you register with a debt consolidation company, they analyze your financial situation, and then suggest a suitable consolidation plan for you. Once the plan has been agreed on, a debt consolidation lawyer contacts your creditors and negotiates with them to reduce or eliminate interest and late fees. This plan is usually a long-term plan that makes your installment payments cheaper!

A good Illinois debt consolidation program helps you repay your debts within 5 years. This payment covers the company's fees and your monthly payment to your creditors.

So, you put your faith in a company, and you won't have the complication of managing many debts at one time. And once the program has been successfully completed, you'll end up saving quite a bit for yourself!

Loans that can be consolidated in Illinois

There are several kinds of loans which are ideally suited for debt consolidation in Illinois, and they are:

  • Credit card debts
  • Payday loans
  • Unsecured personal loans
  • Student loans

Benefits of Illinois debt consolidation programs and loans

A good debt consolidation program in Illinois would give you the following benefits:

  • Simplifying your debts: Debt consolidation enables you to combine most of your current bills into a single payment. This is a great way to get your debts and finances simplified.
  • Lower interest rates: Debt consolidation gets your repayment plan negotiated at a lower rate of interest. Lower rates make the overall monthly payments easier and more affordable.
  • Tax-deductibility: The interest on a consolidation loan taken out on a first or second mortgage is tax-deductible from your federal taxes.

How do you know if Illinois debt consolidation programs are right for you?

A few symptoms can tell you if Illinois debt consolidation programs are right for you, and they are:

  1. Your expenses are way more than your income.
  2. Your debts are beyond your control.
  3. You’re unable to manage your credit card bills, payday loans, utility bills, medical bills, and so on.
  4. You’re getting collection calls almost every day.
  5. You want to pay off debts in full but at a low-interest rate.
  6. Creditors are threatening to sue you soon.

How can you qualify for debt consolidation programs in Illinois?

The eligibility criteria for Illinois debt consolidation programs are quite simple. As long as you have unsecured debts, financial documents, valid identity proof, and have a regular source of income, you can qualify for these programs.

What should you do after choosing an Illinois debt relief program?

After choosing an Illinois debt relief program, make sure you take the following steps to get the maximum benefits:

  1. Disclose your income and expenses to debt counselors honestly.
  2. Submit the required documents so that debt counselors can start working.
  3. Create a space in your budget so that you can make the monthly payments.
  4. Watch out for ways to save money and lead a frugal lifestyle.
  5. Stop using credit cards for shopping. Pay in cash to keep yourself in check.
  6. Use financial windfall to repay your bills and boost your emergency fund.
  7. Pay debt consolidation fees and coordinate with counselors every month.
  8. Inform your creditors that you have joined a consolidation program.

How soon can you be debt-free in Illinois?

It depends on a few factors like how many unpaid bills you have, how many creditors have agreed to lower your interest rate, and how many monthly payments you have made until now. Some creditors may not agree to join Illinois' debt consolidation programs at first. Debt counselors have to spend a lot of time convincing them. This will take extra time.

If all the creditors cooperate, then it takes between 2 and 5 years to get out of debt. You can be debt-free sooner by making additional payments though.

How can you select the best debt consolidation companies in Illinois?

With so many fraudulent companies lurking around, you can’t take any chances when it comes to consolidating your bills. The best debt consolidation companies in Illinois can give you the right guidance when it comes to paying your bills. These companies have good terms with creditors. So, it’s easier for them to grab the best deal for you. So, if you’re serious about being debt-free, then you should definitely work with the best in the industry.

Here are a few tips to help you choose the best companies in Illinois.

  1. Ask your friends for their valuable recommendations.
  2. Search online with phrases like “top debt consolidation companies in Illinois.”
  3. Read the online reviews before making the ultimate decision.
  4. Check BBB accreditations and ratings.
  5. Check if the companies follow the state and federal laws.
  6. Check the client satisfaction rate of the companies.
  7. Check the transparency disclosure and fee structure of the companies.
  8. Check the privacy policy of the consolidation companies.
  9. Find out if you can get legal advice from the companies.
  10. Check if the companies are licensed in Illinois.

Can you consolidate bills with a limited income in Illinois?

One eligibility criterion for a debt consolidation loan in Illinois is your monthly income. If you have a limited income, then you may not qualify for the desired loan amount or the interest rate. However, there is no minimum income criterion for consolidation programs. So, there won’t be any problem in consolidating bills with the Illinois debt consolidation programs. Debt counselors are willing to negotiate with your creditors and arrange an affordable repayment plan based on your limited income.

Does your credit score go up after consolidating bills in Illinois?

Repeated defaults on debt payments have a negative impact on your credit report. Consolidation programs in Illinois aim to fix your credit rating over time.

It is true that going for a consolidation program would initially cause your credit score to go down. The dip would be a little more if you took out a consolidation loan, as it is yet another loan on top of existing debts.

However, your bad score would just be temporary!

As your existing debts start getting paid off during the consolidation process, your credit score goes up, and on successful completion of the consolidation program, you are left with an improved credit score.

Other debt relief options in Illinois

If you are looking for some other debt relief options in Illinois, then you can also choose to settle your debts or declare bankruptcy.

If you don’t want to pay the full amount at an affordable interest rate, then there are a few other options for you. For example, a debt settlement where you get the option to pay a lower payoff amount. It's a faster process than consolidation. Hence, it’s so popular in the US. Another option is a debt management plan where you pay back your creditors with the help of a customized budget and a reduced interest rate. Usually, credit counseling agencies offer this plan. The third option is bankruptcy wherein the court mediates the entire repayment process.

Related information


State Attorney General Phone Number: (312) 814-3000, (217) 782-1090, (618) 529-6400/6401
Public Service Commission Phone Number: (217) 782-7295; Toll Free: 1-800-524-0795

FTC Address:
Midwest Region Federal Trade Commission 55 West Monroe Street, Suite 1825 Chicago, IL 60603
FTC Toll Free:
877-FTC-HELP (382-4357)
FTC Website Url:
CFPB Toll Free:
1-855-411-2372
CFPB E-mail:
info@consumerfinance.gov
whistleblower@consumerfinance.gov
CFPB Website Url:


Last Updated on: Tue, 5 May 2020