Debt Consolidation in Pennsylvania

It is often quite difficult to manage multiple debts with different principals and interest rates. It gets more difficult when you find it hard to make ends meet after your monthly payments. How you wish you could pay off your obligations and did not have to compromise on your monthly necessities? If you are a Pennsylvania consumer and struggling with similar problems, then debt consolidation is the best way to simplify your debt issues.

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

How does debt consolidation work in Pennsylvania?

Debt consolidation is by far the best debt relief option, which offers an easy way out of multiple debts. It is a debt management program where you replace your existing debts with a single debt that you pay off at a fixed interest rate and over a longer period of time.

Debt consolidation in Pennsylvania operates the same way as in any other state in the US.

You can consolidate your debts either with a consolidation loan or you can enroll with an established debt consolidation company in Pennsylvania.

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How to consolidate debts with a debt consolidation loan in Pennsylvania

In order to consolidate your debts with a consolidation loan, you have to take out a loan, with low interest rate, and then use the money to pay off your current obligations.

Once you pay off your obligations, you will be left with a single consolidation debt to meet. Low interest on the loan will lower your monthly payments substantially and you will be able to pay off the consolidation loan in affordable installments within your monthly budget.

Your consolidation loan can either be a secured loan or an unsecured loan.

Secured loans are borrowed against some collateral, such as a house, a car, landed property, jewelry, or any other valuable asset. Unsecured loans do not require any collateral.

Since the collateral provision reduces the interest rate, secured loans are preferred to unsecured loans to consolidation your debt. So, if you own some property, you can collateralize it and get a loan to consolidate your debts.

If you own a house and have considerable equity on it, then you can go for a Home Equity Line of Credit to consolidate your debts. The more equity you have, the less the interest and the more you can borrow. But, if you do not have any assets, then you can look for a low interest unsecured loan to get your debts settled.

How does a Pennsylvania debt consolidation company help?

If you are not quite confident about handling your debt issues on your own, then you can enroll with a debt consolidation company in Pennsylvania and let the company handle your debt issues.

When you enroll with a debt consolidation company, the company will work on your debt issues in the following way:

  1. First, the company will evaluate your debts and finances in order to get you enrolled in a program best suited to your circumstances.
  2. After you enroll in a consolidation program, the company's debt attorney will send a "cease and desist" and power of attorney letter to your creditors in order to notify them not to communicate you and that your debt issues are being handled by the company.
  3. Then, the company's debt arbitrator will negotiate with your creditors to eliminate penalties and determine new lower interest rates.
  4. After that, the company will create a payment plan within your budget, by applying the new interest rates and the new loan terms. You will need to pay a fixed amount to the company every month, according to the plan.
  5. The company will use your payment to pay the monthly installments to your creditors.
  6. The process will continue until your obligations are paid off.

But before you sign up with a debt consolidation company, you should always check the company's accreditation with the Better Business Bureau. This accreditation is a proof of the company's integrity and assures you that you will not fall prey to debt consolidation scams.

Debt suitable for Pennsylvania debt consolidation

If the following loans are troubling you and you are having a tough time making payments on them, then Pennsylvania debt consolidation can be useful for you:

  • Credit Card Debts
  • Private student loans
  • Personal Loans
  • Medical Debts
  • Payday Loans
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Whenever you go for credit card debt consolidation, you should learn about Pennsylvania's credit card debt laws, in order to protect yourself from any credit card debt consolidation scams.

How does Pennsylvania debt consolidation affect your credit score?

Since debt consolidation helps you pay off your entire borrowed amount, it has least negative effect on your credit score.

When you take out a consolidation loan, your score initially goes down. But that remains for just a little while. As you start paying off your debts with the loan money your credit score starts increasing. Your credit score receives further boost when your consolidation loan is paid off.

But you need to be very careful of certain things when you are in a debt consolidation program so your credit score does not get damaged:

  • Do not close your credit card accounts soon after you have paid them off, otherwise your credit score will be affected.
  • Avoid taking out any new loans, while you are in a consolidation program. New loans will lower your score.
  • Make your payments on time. Timely payments will improve your credit score fast.
  • Avoid balance-transfer. Think twice before you apply for a new credit card with a low introductory rate. If you fail to pay off the balance within the trial period, your interest rates will increase, and it may put you in serious debt problems.
  • Do not apply for credit frequently, while you are in a consolidation plan. Applying for new credit will open up possibilities for new defaults.

How does Pennsylvania debt consolidation benefit you?

With Pennsylvania debt consolidation, you get the following benefits:

  • Single monthly payment.
  • Lower interest rate on your payment.
  • Freedom from creditor harassments.
  • Improved credit ratings.

Related information


State Attorney General Phone Number: 717-787-3391, 814-871-4371, 215-560-2414, 412-565-5135, 570-963-4913, 814-863-3900, 215-348-6060, 610-891-4865; Toll Free: 1-800-441-2555, 1-888-520-6680
Public Service Commission Phone Number: 717-787-4301

FTC Address:
East Central Region Federal Trade Commission 1111 Superior Avenue, Suite 200 Cleveland, OH 44114-2507
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:


Note: OVLG is not offering debt consolidation services in Pennsylvania at this moment.


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