Best Debt Consolidation in Corpus Christi, TX

How to choose debt consolidation in Corpus Christi

In Nueces County, 52% of the population has debt in collections, according to the Urban Institute in 2017. If you’re one of those affected, consider hiring debt consolidation services to make your life easier.

Debt consolidation companies in Corpus Christi combine multiple debts into one single account to make debt management easier and more straightforward. A debt settlement company also works with creditors to negotiate the amount you owe.

Before you decide to pursue debt consolidation, ask yourself:

• Are you delinquent on your accounts?
• Is your credit score already poor due to your debt?
• Do you owe more than $10,000?

If you answered yes to all of these questions, debt settlement is a worthwhile option.

Getting debt consolidation help in Corpus Christi

In general, it takes between two and four years to fully settle debts while working with a debt consolidation company in Corpus Christi. This is because the debt settlement company keeps your payments in an account until you have enough to pay off your creditors in one lump sum, ideally for less than you originally owed.

Because debt settlement is such a long-term investment, review your options before you sign a contract. When comparing companies, first make sure they’re legitimate and in good standing with the IRS. Next, compare prices and services offered.

Debt settlement in Corpus Christi costs between $500 - $3,000. Where your case falls in this range depends on its complexity. Bear in mind, this amount is only what the debt consolidation company charges. You still have to pay the remainder of the debt that they negotiate for you and maybe even taxes on your total debt before the reduction.

Secured debt vs. unsecured debt

Debt settlement companies only work with unsecured debt, which is debt that doesn’t have collateral. If you have secured debt (such as a mortgage or vehicle loan), a debt consolidation company cannot help you because creditors can simply repossess the collateral rather than negotiate.

Debt settlement alternatives in Corpus Christi

Corpus Christi residents with significant debts might also be considering bankruptcy. However, according to the Federal Trade Commission, bankruptcy should be a last resort. The FTC suggests first working with a credit counseling service.

Other alternatives to debt consolidation include:

• 0% interest credit cards
• Borrowing against your 401(k)
• Debt counseling
• Personal or home equity loans

In general, seeking debt consolidation in Corpus Christi is a serious decision that impacts your life for years to come. It’s critical to research the best debt settlement companies and options beforehand, so you have the best odds of reducing debt.