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Debt Consolidation Indiana: Your Complete Guide

Debt Consolidation Indiana: Your Complete Guide

Many Americans are struggling to make ends meet during these tough economic times. The unemployment rate remains high and soaring food prices are squeezing the financial resources of families throughout the nation. People who are having a hard time often default on their credit cards or loan payments. They begin to look for different ways to get out of debt and short of filing bankruptcy; there are only a few options. Consumers may want to consolidate all of their bills into one loan. The primary benefit is that only one payment will need to be made each month. This saves both time and money spent on interest.

Debt Consolidation Benefits

A debt consolidation Indiana program usually starts with the individual completing a counseling session. The company will examine all of the person’s financial obligations to determine what type of loan can best meet their needs. These are some options:

  • Consolidation Loan—A debt consolidation Indiana loan help by combining a number of bills into one single loan. This usually carries a much lower interest rate and the consumer only has to pay one bill every month instead of taking time to pay several bills.
  • Balance Transfer—The consumer can obtain an interest-free credit card with a zero percent introductory rate for a period of 12 to 15 months. During this time they can transfer all of their other credit card balances onto the new card. However, keep in mind that after the introductory period has expired, the interest rates will significantly increase.

Some debts expire after a period of time so it’s important to know the statute of limitations. In Indiana, oral contracts and open-ended accounts expire after six years. Written contracts and promissory notes expire after ten years. This means that creditors and collection agencies can no longer come after the consumer for repayment of the debt once the statute of limitations has run out.

Is Refinancing Your Mortgage An Option?

It may be possible for homeowners to transfer their unsecured debts into one secured debt. In fact, people who obtained a fixed rate mortgage loan when interest rates were high might benefit in more than one way. Here are some things to consider regarding debt consolidation Indiana homeowners may find helpful:

  • Determine the amount of equity you currently have in your home. In some cases, the homeowner might be eligible to take out some extra cash for home improvement projects.
  • If you don’t have a lot of cash on hand, find out if you can finance the refinance closing costs.

In certain areas of the country, property values have increased steadily. Your house and property may be worth much more than when you took out the original loan. Remember that all interest charged against your home mortgage loan is tax deductible.

Beware of Scams

Anyone seeking a debt consolidation Indiana program may run across companies offering to settle their debts for exorbitant fees. They make promises to stop creditors from harassing the individual but this often doesn’t happen. Consumers should check to see if the company is a member of the Better Business Bureau (BBB). This organization gathers and reports information regarding unethical business practices and alerts the public to fraudulent scams. Before deciding on any debt consolidation Indiana solution, do some homework and find out if the company is reputable.

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