Find the Best Debt Consolidation in Tallahassee, FL

How to choose debt consolidation in Tallahassee

There are many reasons Tallahassee residents go into debt, and attempting to pay it off while also meeting your monthly expenses can be overwhelming. The constant financial pressure can lead to missed payments and increased interest rates. Between credit card payments, medical debt and student loans, it’s easy to get behind on payments and much more difficult to catch up.

Nearly 40 percent of Leon County residents have debt that is in collections, which is higher than the national average of 33 percent. Around 16 percent of Leon County has student loan debt in collections, while 23 percent are behind on payments for medical debts.

Getting debt consolidation help in Tallahassee

One of the most common forms of debt consolidation in Tallahassee is debt settlement, which lets you make one monthly payment into an account created for debt settlement purposes. The debt consolidation company you’re working with uses these funds to negotiate with creditors in an attempt to settle your debts for a reduced amount.

Generally, debt consolidation services in Tallahassee prefer a minimum of $10,000 in unsecured debt. Secured debt is ineligible for debt settlement.

Secured vs. unsecured debt

It typically takes between two to four years to finish the debt settlement process. While debt settlement may have an initial negative impact on your credit score, it’s generally a better option than bankruptcy. Unlike bankruptcy, debt settlement:

• Remains private and is not public record
• Typically has a reduced negative impact on your credit score
• Protects personal assets

Other debt relief options in Tallahassee

If your debt is lower than the minimum amount debt consolidation companies prefer, there are options you might consider. These include:

• Transferring your debt to a credit card with 0 percent interest on balance transfers
• Taking out a debt consolidation loan to pay off all current debts and reduce your number of payments
• Working with a debt counseling agency to create a financial plan to handle your debts

If you have a good relationship with your lender, it’s also possible you may be able to negotiate with them to lower your payments or settle your debt for a lump sum amount. This can be a time-consuming, complicated process, however, which is why most Tallahassee residents rely on a debt consolidation company’s expertise in the area.