Debt Consolidation in North Carolina

Managing several debts with different principals and interest rates every month can make it hard to make ends meet.

If that is your problem and you badly need a way out, then debt consolidation may be the answer! With debt consolidation you can combine your existing debts into a single payment at a lower fixed interest rate.

How much can you save?
Monthly payment you can afford
$
.00

How Debt Consolidation works in North Carolina?

A Debt Consolidation program in North Carolina is not different from a program in any other state.

The following are the two most commonly used methods for debt consolidation:

  • Consolidating with a low interest debt consolidation loan
  • Consolidating with a debt management plan

Consolidating Debts with a Consolidation Loan

This is by far the easiest and cheapest option to getting your debts consolidated. All you need to do is take out a low interest loan and use it to pay off your existing liabilities. As you pay off your obligations, you are left with a single monthly payment to be made on the consolidation loan. The low interest rate makes your repayment affordable.

Types of consolidation loans

You can take out either a secured or an unsecured loan and use the proceeds to consolidate your existing loans.

A secured loan is taken out with an asset that is used as collateral for the loan, while an unsecured loan does not require any collateral.

Ideally you should choose a consolidation loan with a low interest rate, so you lighten your debt load. Using a collateralized secured loan will decrease your interest and increase the amount of principal you are able to borrow. So, secured loans are more advantageous for debt consolidation. Home Equity Lines of credit/ Home Equity Loans and loans borrowed against assets like cars and jewelry, are some of the best secured loans that can be used for debt consolidation.

Low interest unsecured personal loans can also be used for debt consolidation!

How can a North Carolina Debt Consolidation Company help you?

If the idea of a consolidation loan does not sound feasible, then the best way to get your debt consolidated is with a reputable Better Business Bureau (BBB) accredited debt consolidation company in North Carolina.

Before you enroll, the debt consolidation company will analyze your finances and help you decide which debt solution program is right for you. Once you enroll, you will need to pay a small upfront fee before the company will pass your case over to one of their debt consolidation attorneys.

The attorney will then send a "cease and desist" letter to your creditors and begin negotiating to lower your interest rates, penalties, charges, and get you a better repayment plan.

The plan will require you to make a single monthly payment to the company. The company will then use this money to pay the monthly installments to your creditors and pay its monthly charges.

Loans eligible for Debt Consolidation in North Carolina

  • Credit Cards Debts
  • Student Loans
  • Personal Loans
  • Medical bills
  • Payday Loans

How does Debt Consolidation in North Carolina affect your Credit Score?

Debt consolidation hurts your credit score less than debt settlement or bankruptcy because with debt consolidation you repay the entire amount of your debts.

When you take out a loan to consolidate your debts, your credit score initially goes down, but as you start paying off your accounts, your credit scores increase. Then as you pay off your consolidation loan your credit score increases even more.

Benefits of North Carolina Debt Consolidation program

  • Puts an end to harassing collection calls
  • Reduces interest rates on your monthly payments
  • Avoids the hazards and complications of bankruptcy
  • Late fees and over-limit charges get eliminated and debts get simplified
  • Affects your credit score minimally
  • Paves way to an improved credit score

Things you should avoid

Simply enrolling in a consolidation program is not enough. You need to take some steps to make sure your credit score does not decrease even more.

Here are certain things that you should keep in mind when you are in a debt consolidation program, so that your credit score is not risked:

  • Do not to close your credit card accounts soon after you have paid them off, as it hurts your credit score adversely. You can close most of your accounts, but keep your oldest account intact.
  • Do not to take out any new loans, when you are in a consolidation program, as it can lower your credit score further.
  • Make timely payments, to increase your credit score.
  • Do not take out a new credit card, especially if you want to use its introductory interest rate for a balance transfer. If you fail to pay off within the trial period, your interest rates will increase, and that can put you in further debt.
  • Do not apply for credit frequently, because new credit opens up possibilities for new defaults.
  • Related information


    State Attorney General Phone Number: 919-716-6000, 919-716-0058; Toll Free: 1-877-566-7226
    Public Service Commission Phone Number: (919) 733-4249, (919) 733-2810

    FTC Address:
    Southeast Region Federal Trade Commission Suite 1500 225 Peachtree Street., NE Atlanta, GA 30303.
    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:


BBB-A--Rating