Debt Consolidation in Illinois

Life can often be a delicate balance between work and debt. So when something unexpected happens to upset that balance, like a medical emergency, you can find yourself floundering. Seeking help from an Illinois debt consolidation expert can help you get yourself back on track.

When you work with a debt consolidation program, you will receive a lower interest rate, collection agencies will stop harassing you, your credit score can improve, and you can learn to manage your debts more successfully.

If you work with an Illinois debt consolidation company, all of your debts are combined into one account, and you will make just one monthly payment to only one creditor.

Of course, you can always consolidate your debt yourself by taking out a home equity loan on your house, but if you end up being unable to make those payments, you could lose your home.

When you work with a debt consolidation company, you are protected by the laws of the State of Illinois. The Illinois Division of Financial Institutions states that "debt management services" includes the planning and care of the finances of a debtor for a cost and receiving money from the debtor for the purpose of distributing it to the personal creditors of the debtor in full or partial payment of the debtor's obligations or asking for contributions of finances from creditors. Any company that provides these services within the State of Illinois is restricted to a set-up or consulting fee of no more than $50, and monthly fees of no more than $30.

Credit counseling services are also available for your use. These are usually non-profit companies, and they offer individual budget counseling and financial management education to the public.

Debt settlement is another form of debt relief you can consider if you have a chunk of savings available to you. This can be done on your own or through a debt settlement company. You or the company then negotiates with your creditors and gets them to accept 40 to 60% of what you owe in a lump sum. This is then considered full satisfaction of the debt.

However, if you are having trouble making your payments in the first place, it's likely you don't have much money in your savings account. Again, you could get a home equity loan in order to do this, but you should really consider all of your options before jumping into one type of solution. We can help you with that decision.